EU ETS and competiveness: the tricky equation of free allocation through to 2030

With the entry into force of the European carbon farming certification framework (CRCF), the European Union now has a first-of-its-kind tool to certify climate-friendly agricultural and forestry practices.

An Improved Forest Management (IFM) methodology has been initiated under the Carbon Removals and Carbon Farming regulation (CRCF), alongside a near-finalised afforestation methodology. As concerns grow over the declining capacity of Europe’s forests, determining which forest management practices should be incentivised through carbon certification is far from straightforward. 

In France, after the French “Low Carbon Label” (le Label bas carbone, LBC) certification scheme, there remains a systemic lack of funding for agricultural projects. Among the reasons mentioned by the agri-food industries is the fear of “double claiming”.