EU: First Certification Methodologies Adopted Under Carbon Removals and Carbon Farming Regulation
The European Commission has adopted a delegated regulation establishing the first set of methodologies under the EU’s Carbon Removals and Carbon Farming (CRCF) Regulation to certify activities that permanently remove CO2 from the atmosphere.
The new rules cover three types of removal activities: direct air capture with carbon storage (DACCS), biogenic emissions capture with carbon storage (BioCCS), and biochar carbon removal (BCR). The three methodologies set out voluntary rules for permanent carbon removals, defining what counts as a ton of removal, how permanence must be ensured, and how key risks and liabilities are addressed. With the certification framework now in place, carbon removal projects can begin applying for certification.
Later in 2026, the Commission is expected to publish delegated regulations for additional certification methodologies, including carbon farming methodologies for activities such as agriculture and agroforestry, peatland rewetting and afforestation. These methodologies could help farmers to obtain result-based payments, complementing their income and supporting them in the transition towards a more resilient production system.
EU: Amended Climate Law Calls for 90% Emissions Reduction by 2040
On February 2, 2026, the European Parliament backed a political agreement with the Council on amendments to the EU climate law to include a new, intermediate and binding 2040 EU climate target of reducing net greenhouse gas emissions by 90% compared to 1990 levels.
The revised climate law introduces flexibilities in how the 2040 target can be met. From 2036, up to five percentage points of net emissions reductions (two points more than proposed by the Commission) can come from high-quality international carbon credits from partner countries. The text also includes the possibility of domestic permanent carbon removals being used to compensate for hard-to-abate emissions in the EU’s emissions trading system, enhanced flexibility within and across sectors, and instruments to achieve targets as cost-effectively as possible.
The Commission will assess progress towards the target every two years. It will also consider trends in energy prices and their repercussions for both businesses and households and assess the status of net removals compared with what is necessary to meet the 2040 goal. Following each review, the Commission may propose an amendment to the EU climate law, which could involve modifying the 2040 target or taking additional measures to strengthen the supporting framework.
As for next steps, the Council must now endorse the revised climate law. It will enter into force 20 days after publication in the EU’s Official Journal.