EU’s First Voluntary Rules for Carbon Removals

EU moves towards a common standard for permanent carbon removals

The European Union has taken a significant step in how carbon removals are defined and verified. In February 2026, the European Commission adopted the first certification methodologies under its Carbon Removals and Carbon Farming Regulation, commonly known as the CRCF. This makes the EU the first major economic bloc to put a formal voluntary certification standard in place for permanent carbon removals.

While this may sound distant from day to day trading for most UK small and medium sized businesses, it matters more than it first appears. The CRCF sets out how certain carbon removal activities can be measured, checked, and recorded in a consistent way across the EU. That consistency is designed to reduce weak claims and misleading use of carbon credits, especially around permanent removals such as carbon capture and biochar.

For UK businesses that sell into EU supply chains, take part in EU funded programmes, or are asked about the credibility of their climate claims, the direction of travel is clear. Buyers and regulators increasingly want verifiable evidence, not marketing statements. Although this is an EU framework, it will influence expectations well beyond EU borders.

In practice, the CRCF provides a reference point. It explains what the EU considers a high quality carbon removal and how that claim should be supported. As a result, UK firms making or using removal claims should understand how this framework works, even if they cannot take part directly.

What the Carbon Removals and Carbon Farming Regulation covers

The CRCF Regulation is formally known as Regulation EU 2024/3012. It entered into force in December 2024, following several years of policy development and consultation. The regulation establishes a voluntary EU wide system for certifying certain climate activities.

The framework covers three broad categories. The first is permanent carbon removals. These are activities that remove carbon dioxide from the atmosphere and store it for very long periods, often hundreds of years. Examples include direct air capture with geological storage.

The second category is carbon farming. This relates to land based activities that increase carbon stored in soils or biomass. Common examples include peatland restoration and agroforestry. These removals are not always permanent, so they are treated differently.

The third category covers carbon storage in long lasting products. This includes activities where carbon is locked into materials that stay in use for decades, such as certain wood products.

The regulation does not create a trading market or force companies to buy carbon removals. Instead, it sets quality rules for voluntary certification. According to the European Commission, the goal is to support investment in credible carbon removals while reducing the risk of greenwashing.

Quality rules that certified removals must meet

Under the CRCF, any activity seeking certification must meet four core quality principles. These principles are designed to make sure that certified removals are real, measurable, and environmentally responsible.

The first principle is additionality. This means the activity must go beyond what is already required by law. If a company would have carried out the activity anyway to meet regulation, it cannot be certified.

The second principle is robust quantification. Carbon removal must be measured using approved methods. The amount of carbon removed must be calculated accurately, and uncertainty must be managed and reported.

The third principle is permanence. The carbon must stay out of the atmosphere for a defined period. For permanent removals, this usually means geological or stable forms of storage intended to last for centuries. If there is a risk of reversal, that risk must be managed.

The fourth principle is environmental sustainability. Activities must avoid harming biodiversity, water, soil, or air quality. The regulation uses the concept of doing no significant harm, which is already familiar from other EU sustainability rules.

In addition, an activity must contribute to at least one sustainability objective set out in the regulation. Importantly, only activities that take place within the EU can qualify for certification.

First certification methodologies adopted by the Commission

The February 2026 delegated regulations mark the first time specific certification methodologies have been formally adopted under the CRCF. These methodologies focus on permanent carbon removals.

The Commission adopted methods for three technologies. The first is Direct Air Capture and Carbon Storage, often referred to as DACCS. This involves capturing carbon dioxide directly from ambient air and storing it underground.

The second is Bioenergy with Carbon Capture and Storage, or BioCCS. This combines energy production from biomass with capture and permanent storage of the resulting carbon dioxide.

The third is biochar. Biochar is a stable form of carbon produced by heating biomass in low oxygen conditions. When applied to soil or used in materials, it can store carbon for long periods.

These methodologies move the system from principle to practice. From this point, project developers can design activities that match approved methods and seek certification through recognised schemes.

Further methodologies are planned. The Commission has indicated that methods for carbon farming activities such as peatland restoration and afforestation should follow, with adoption expected during 2026.

How certification works in practice

The CRCF uses a layered governance structure that separates rule setting, certification, and auditing. This is intended to improve trust and clarity.

The European Commission sits at the top of the system. It develops certification methodologies and recognises certification schemes. The Commission is supported by an expert group made up of technical specialists.

Certification schemes are organisations approved by the Commission. Their role is to apply the EU rules, operate registries, and manage certified units. Schemes must meet strict criteria before they can be recognised.

Certification bodies carry out audits on the ground. These bodies are supervised by national authorities within EU member states. They check whether an activity meets the methodology requirements before a certificate is issued.

In November 2025, the Commission adopted Implementing Regulation EU 2025/2358. This sets out technical rules for how schemes, auditors, and audits must operate. The aim is to ensure consistency without lowering quality.

Why public registries are central to the framework

Transparency is a key part of the CRCF design. Every certified activity and unit must be recorded in a public registry.

During the early years, each recognised certification scheme must operate its own public and interoperable registry. These registries must record how units are generated, transferred, and used. This helps prevent double counting and misuse.

By late 2028, the EU plans to introduce a single, central registry. This Union wide system will replace individual scheme registries and provide a single reference point.

For businesses, this matters because claims can be checked. Buyers, regulators, and civil society can trace where a removal came from and whether it has already been used.

The approach reflects wider EU policy thinking. Transparency is increasingly seen as essential to credible sustainability claims, especially where climate impacts are concerned.

Where the regulation sits in the legislative process

The delegated regulations adopting the first methodologies were formally transmitted to the European Parliament and the Council in February 2026.

Both institutions now have a two month scrutiny period. This period can be extended by a further two months if needed. During scrutiny, legislators can object, but they cannot amend the text.

If no objections are raised, the regulations are expected to be published in the Official Journal in early April 2026. They would then enter into force 20 days after publication.

Once in force, certification schemes can apply to the Commission for recognition to use one or more methodologies. The Commission will assess each scheme against a standard assessment process.

This staged approach is designed to avoid confusion while allowing the system to begin operating.

Why this matters for UK small and medium sized businesses

UK businesses cannot take part directly in CRCF certification unless the activity takes place within the EU. However, the framework still has clear knock on effects.

Many UK firms sell goods or services into EU based supply chains. Larger EU customers are under pressure to substantiate climate claims. As a result, they may prefer alignment with EU recognised approaches when assessing suppliers.

Claims around carbon neutrality or use of carbon removals are coming under closer scrutiny. The CRCF provides a clear benchmark for what the EU considers credible, especially for permanent removals.

If a UK business uses third party carbon removal credits, questions may arise. Buyers may ask how those credits compare to EU certified removals, particularly on permanence and measurement.

There is also a tendering angle. Public and private procurement processes increasingly reference recognised standards. While the CRCF is voluntary, it may influence criteria used in EU related tenders.

Interaction with corporate reporting and green claims

The CRCF does not replace corporate reporting rules. It sits alongside requirements such as the Corporate Sustainability Reporting Directive, often shortened to CSRD.

However, it interacts with them in practice. If a company discloses use of carbon removals, it needs to explain quality and credibility. The CRCF provides a recognised structure for doing so.

For UK firms reporting under voluntary frameworks or facing due diligence questions from EU partners, understanding CRCF language is useful. Terms such as permanence and additionality are now clearly defined in EU law.

Misalignment can create risk. If a business uses vague or unsupported claims, it may face reputational damage or challenges from customers.

This is a growing area of focus for regulators and advertisers, including in the UK.

Key points businesses should be aware of now

• The EU has adopted the first voluntary certification methods for permanent carbon removals.
• The framework covers permanent removals, carbon farming, and long lasting product storage.
• Initial methodologies apply to DACCS, BioCCS, and biochar.
• Only activities within the EU can be certified under the CRCF.
• Public registries are required to track all certified carbon removal units.
• A central EU registry is planned for launch by late 2028.
• Although voluntary, the framework sets a clear quality benchmark.

SBS Insight

From our experience advising UK businesses, carbon removals are often misunderstood. Many firms treat all credits as interchangeable. The CRCF shows that regulators do not see it that way.

Permanent removals are being separated from temporary reductions and offsets. That distinction is likely to appear more often in customer requirements and assurance reviews.

For SMEs, the first step is not to buy credits. It is to understand how removal claims might be questioned. If your business references carbon neutrality, net zero pathways, or use of removals, clarity matters.

We encourage businesses to focus on emissions reduction first. Removals should only be discussed in that context. This aligns with both UK and EU policy direction.

It is also sensible to review how suppliers and partners describe their climate actions. Inconsistent or inflated claims elsewhere in the supply chain can still affect you.

For practical help, our guidance on net zero planning for SMEs explains how reductions and removals should be treated. We also outline expectations in our support for carbon reporting compliance.

As standards tighten, plain language and evidence will matter more than labels.

Sources and official guidance worth reviewing

Businesses wanting to explore the detail should refer to primary sources. These explain how the framework has been designed and how it will operate.

The European Commission provides an overview of carbon removals policy on its climate action pages at the European Commission climate directorate. Regulatory texts are published via EUR Lex, which hosts EU legislation.

For wider context, analysis from the Carbon Trust is useful, particularly on the role of removals in credible climate strategies. Coverage from outlets such as the Financial Times also helps track market reaction.

UK businesses should also keep an eye on domestic guidance on green claims, including material published on gov.uk.

For supplier focused advice, our article on sustainable procurement for SMEs explains how buyer expectations are changing.