EU ETS: Recommendations to include agriculture in carbon markets (ERCST)

"Agriculture has the potential to supply high-quality removals. Carbon removal credits generated in the AgriETS could be exported to support the decarbonisation. Additionally, it could set a business case for farmers and landowners to invest in carbon removals with a view to exporting credits to the established ETS.
Carbon farming can create a new revenue stream for farmers by adopting practices such as improved soil management, agroforestry, and restoration of degraded lands. This provides a tangible financial incentive that complements food production and helps build financial resilience", outlines the European Roundtable on Climate Change and Sustainable Transition (ERCST) in its latest report on the future of emissions trading in the EU in the agricultural sector, released on 18/11/2025.

"Revenues generated by the AgriETS could be recycled to finance farmers' decarbonisation and invest in carbon sequestration projects in agriculture. A carbon price for EU agriculture could trigger €229.6 Bn between 2024 and 2048. Revenues could be linked with the CAP to enhance the budget of an…