While Verra and Gold Standard debate methodology updates, the EU quietly did something no government has done before: it created a government-backed certification label for carbon removal credits.

The Carbon Removals and Carbon Farming Regulation (CRCF) — adopted in December 2024, with first certification methodologies published in February 2026 — establishes a voluntary framework for certifying carbon removals and soil emissions reductions.

What Makes This Different

Every existing carbon credit certification (Verra’s VCS, ICVCM’s Core Carbon Principles, Puro.earth) is run by private organizations. The CRCF is the first where:

  • Certification occurs through government-accredited certifiers
  • Methodologies are established by delegated acts (i.e., formal EU legislation)
  • There’s a clear pathway to ETS integration — the Commission must assess by July 2026 how permanently stored carbon removals can be integrated into the EU Emissions Trading System

If CRCF credits become ETS-eligible, that would create the world’s first compliance market pathway for engineered CDR.

Three Categories

The CRCF differentiates between:

  1. Permanent carbon removal — storage for several centuries (think geological storage, mineralization)
  2. Carbon storage in products — processes that store carbon for at least 35 years (like biochar in concrete)
  3. Carbon farming — practices over at least 5 years on terrestrial or coastal environments

The first delegated act covers permanent removal methodologies. Carbon farming methodologies are expected by summer 2026, with bio-based construction products close behind.

Why CDR Companies Should Pay Attention

The CRCF is voluntary — certification schemes can seek EU recognition but don’t have to. But there are compelling reasons to opt in:

  • Price premiums — government-backed verification could command higher prices than private labels
  • ETS eligibility — if the Commission integrates CRCF credits into the ETS, certified credits would access the world’s largest carbon market
  • Regulatory alignment — the EU’s 2040 climate target (90% emissions reduction) explicitly references carbon removals, and CRCF provides the accounting framework

The timing is deliberate. As the voluntary carbon market cleans house after years of credibility issues, a government-backed standard could accelerate the flight to quality.

Source: Latham & Watkins / Global ELR · Arbonics

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