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The EU CRCF explainer: Setting the new benchmark for carbon removals
15 April 2026 4 minute read

The EU CRCF explainer: Setting the new benchmark for carbon removals

Carbon markets & climate policy Net zero
Michele Rumiz
Michele Rumiz Regional Senior Manager, Climate Projects, Europe
Christopher N. H. Schwarz
Christopher N. H. Schwarz Associate Director, Center of Excellence Lead

Learn how the EU CRCF sets a global benchmark to create one of the largest, government-backed carbon removal markets in the world.

Carbon removals are no longer a discretionary choice; they are a non-negotiable pillar of any credible strategy to bridge the gap between aggressive carbon emission cuts and a true net-zero state. In this first of a two-part blog series, we provide a comprehensive overview of the EU Carbon Removal Certification Framework (CRCF) for sustainability leads, procurement officers, and corporate strategists. We will cover why high-integrity carbon removals are becoming an essential component of global net-zero journeys, the specific pillars of the EU's new framework, and the critical steps businesses operating in Europe should take now to align their carbon credits procurement and Scope 3 strategies with these emerging rules.

The climate imperative: Why high-integrity carbon removals are essential to Net Zero

In the race to Net Zero, the hierarchy of climate action is clear: reduce carbon emissions first, fast, and across the board. However, leading scientific and regulatory bodies agree that carbon emissions reductions alone will not be enough to meet our global goals.

For example, the Intergovernmental Panel on Climate Change (IPCC) has concluded that the deployment of carbon dioxide removals (CDR) is 'unavoidable' to counterbalance residual carbon emissions from hard-to-abate sectors where technical or economic barriers make full decarbonisation exceptionally difficult.

Similarly, the SBTi Corporate Net-Zero Standard (CNZS) v2.0 draft reinforces that carbon removals are a mandatory component of a net-zero state. In addition to taking responsibility for ongoing emissions, the draft framework requires that companies neutralise any residual carbon emissions that remain at the net-zero year and thereafter. In the context of science-based targets, these residual emissions are those that remain once a company has achieved its long-term carbon emissions reduction target—typically representing 10% or less of base-year emissions.

Until now, the carbon removal market has been defined by fragmented methodologies and differing levels of maturity across project types—ranging from established nature-based solutions to early-stage industrial technologies. This lack of standardisation, combined with typically high prices for durable removals, has made it difficult for companies to invest with confidence. For companies operating in Europe, a clearer path is emerging. The EU Carbon Removal Certification Framework (CRCF) establishes a voluntary, region-wide system to certify high-quality carbon removals. By creating common 'rules of the road', the CRCF helps transform a fragmented landscape into a more regulated and reliable market that aligns with global climate standards.

Defining the standard: Understanding the three pillars of the EU Carbon Removal Certification Framework

Defining the standard: Understanding the three pillars of the EU Carbon Removal Certification Framework

The CRCF doesn't just look at one type of removal; it creates a holistic ecosystem for carbon sequestration. As outlined in the regulation, the framework categorises carbon removals into three distinct 'pillars', each with specific requirements for duration and storage:

  • Permanent Carbon Removal: This covers industrial technologies like Direct Air Capture (DACCS) and Bioenergy with Carbon Capture and Storage (BioCCS). These methods are designed to store carbon for several centuries, providing the highest level of permanence required for net-zero neutralisation.
  • Carbon Farming: This focuses on nature-based solutions such as soil organic carbon (SOC) sequestration, agroforestry, and peatland restoration. These activities generate units based on sequestration or emission reductions and must last for at least five years.
  • Carbon Storage in Products: This innovative pillar recognises the climate value of long-lived materials, such as timber-based construction or bio-based insulation, which keep carbon locked away for at least 35 years.

The 'QU.A.L.ITY' Criteria

To ensure high integrity, every project must satisfy the four QU.A.L.ITY criteria:

  1. QUantification: Removals must be measured accurately and yield a net-positive climate benefit.
  2. Additionality: The project must go beyond standard practices and regulatory requirements.
  3. Long-term storage: Projects must demonstrate how they minimise the risk of carbon being re-released (reversal).
  4. SustainabiliTY: Removal activities must have a neutral or positive impact on other environmental goals, such as biodiversity and water quality.

Why the EU Carbon Removal Certification Framework is the definitive benchmark for removals

The CRCF represents a fundamental shift in the carbon landscape through three strategic levers:

  • Ending market fragmentation: The CRCF provides a rigorous, EU-backed framework that puts an end to the current fragmentation experienced in the voluntary carbon market. This unified benchmark provides the certainty required for large-scale institutional investment.
  • Unlocking Scope 3 with "air cover": Claiming to neutralise value chain emissions has historically carried significant risk. The CRCF provides the legal and technical "air cover" companies need to credibly claim they are actually neutralising value chain emissions using verified, EU-standardised removals.
  • The blueprint for the EU ETS: The CRCF is not just a voluntary label; it is being explored as the blueprint for the next phase of the EU Emissions Trading System (EU ETS). In a world where the emissions cap is marching toward zero, certified removals are fast becoming the only remaining currency for industrial survival and compliance.

The roadmap to 2026: Key regulatory milestones to watch

As the CRCF moves rapidly from policy to practice, 2026 stands as the pivotal "launch year" for the framework. While the milestones below reflect the most current 2026 roadmap at the time of writing, this remains a rapidly evolving space. We recommend monitoring official EU channels for any fine-tuning of these implementation deadlines, as specific dates may be subject to change.

Officially adopted the first set of methodologies
Certification schemes to be authorised
"CRCF Days" stakeholder event
Adoption of the next set of methodologies
A critical policy report
The launch of the official Union-wide registry

The roadmap to 2026

February 2026
Early April 2026
May 2026
EU Summer 2026
July 2026
By December 2028
Officially adopted the first set of methodologies

The roadmap to 2026

Officially adopted the first set of methodologies

The Commission officially adopted the first set of methodologies for permanent carbon removals (DACCS, BioCCS, and biochar). This provides the long-awaited technical blueprints for the most durable forms of CDR.

Certification schemes to be authorised

The roadmap to 2026

Certification schemes to be authorised

The Commission is expected to open the official process for certification schemes to be authorised under the EU CRCF. Once methodologies enter into force, existing and new schemes can apply for formal recognition to certify projects against EU rules.

"CRCF Days" stakeholder event

The roadmap to 2026

"CRCF Days" stakeholder event

Keep an eye on the "CRCF Days" stakeholder event scheduled for May 20–21, 2026. This will likely be the first major forum where the first wave of authorised certification schemes will be discussed.

Adoption of the next set of methodologies

The roadmap to 2026

Adoption of the next set of methodologies

Adoption of the next set of methodologies is expected, specifically covering carbon farming such as carbon in mineral soil, reforestation and  peatland restoration

A critical policy report

The roadmap to 2026

A critical policy report

 A critical policy report is due from the Commission assessing the feasibility of integrating domestic permanent carbon removals into the EU ETS (Emissions Trading System).

The launch of the official Union-wide registry

The roadmap to 2026

The launch of the official Union-wide registry

The launch of the official Union-wide registry to track every certified unit, eliminating double-counting and ensuring total transparency for buyers.

Future-proofing your strategy: Procurement implications for corporate buyers

When sourcing removals from European projects today, it is critical to clarify if the developer intends to transition to the CRCF to ensure your credits align with official EU definitions of "high-quality" as the market matures. This is particularly vital for the compliance pathway, as the Commission is currently assessing the integration of permanent removals into the EU ETS with a key report due in July 2026. By aligning with the CRCF now, you ensure you are holding the specific asset type being considered for future compliance.

What’s more: to kick-start the voluntary market for CRCF credits, the European Commission has announced the establishment of an EU Buyers Club. The goal of this voluntary initiative is to aggregate private sector demand to provide the long-term certainty developers need to finance and scale high-integrity projects.

Aligning with the future of Scope 3 reporting

Beyond high integrity carbon removals credits, the EU CRCF is expected to provide a standardised logic for addressing Scope 3 emissions across the value chain, in line with recent advancement provided by the Land Sector and Removals Standard released by the GHG protocol. By establishing rigorous EU-wide methodologies for quantifying land-based sequestration and reductions, the framework creates a high-integrity bridge between supply chain activities and climate disclosure. In our next blog, we will explain how companies can address two pressing corporate priorities: secure high-quality carbon credits and drive essential Scope 3 reductions through certified carbon farming activities. We will feature examples of soil carbon projects in South Pole’s portfolio that are anticipated to meet all CRCF requirements based on existing EU Publications, ultimately contributing to accelerating the transition to regenerative farming across Europe.

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