Financing carbon farming practices: lessons learnt in France can reinforce the EU level initiatives

23 January 2026 - Foreword of the week - By : Julia GRIMAULT
In a challenging economic and political context, especially for the agriculture sector, some incentive schemes can still help bring stakeholders together in climate transition and resilience initiatives. This is the case with carbon certification schemes, which both ensure the credibility of the climate impact of the actions implemented and provide remuneration for farmers and foresters for changes in practices. Some of these measures, such as replacing mineral fertilisers (mostly imported) with organic fertilisers, also help to meet the sector’s needs for resilience and strategic independence, which are crucial in the current context.

 

Carbon farming projects are in full swing in Europe: in France, the Label Bas-Carbone (Low carbon standard – LBC) is marking its sixth anniversary (see I4CE’s assessment). At the European level, the CRCF (Carbon Removals and Carbon Farming) is being developed by the European Commission and is expected to become operational in 2026. However, while the supply side is taking shape, the sticky point remains the issue of financing. This is where the LBC is currently struggling, particularly regarding agricultural projects, which face multiple problems in accessing finance. These challenges are not unique to France and could materialise at European level in going forward. The financing options currently being considered by European policy makers are mainly based on voluntary private funding. They will certainly be essential, but based on the experiences in France, we also know that they will most likely be insufficient.

 

In 2026, I4CE is therefore committed to contributing to the further developments for sustainable and appropriate financing for carbon farming at the European level: by analysing and sharing the lessons learnt from the Label Bas-Carbone, particularly via the European Commission’s CRCF expert group and various European research projects, but also by conducting new research to help structure credible demand, combining public and private funding, including from downstream parts of the agricultural value chain.

 

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