Carbon Reduction Activities in Europe: Late December 2025 to Early January 2026
Executive Summary: The European Union is advancing its carbon reduction strategies with significant regulatory updates and initiatives. Key developments include the finalization of certification methodologies for carbon removals and carbon farming, and the implementation of the Carbon Border Adjustment Mechanism (CBAM). These efforts aim to enhance transparency, drive investment in carbon reduction technologies, and align with the EU’s broader climate goals.
Introduction
Between December 29, 2025, and January 04, 2026, the European Union (EU) announced several significant initiatives and regulatory updates aimed at reducing carbon emissions and enhancing sustainability across the continent. These developments are part of the EU’s ongoing efforts to meet its ambitious climate targets and transition towards a more sustainable economy.
Key Developments
1. Certification Methodologies for Carbon Removals and Carbon Farming
The European Commission is finalizing two delegated regulations for certification methodologies, with adoption expected in 2026. These regulations cover methods such as Direct Air Capture with Carbon Storage (DACCS), Biogenic emissions Capture with Carbon Storage (BioCSS), and biochar. For carbon farming, activities include agriculture, agroforestry, peatland rewetting, and afforestation. The Commission will start accepting applications for certification scheme recognition in early 2026, ensuring a smooth start for these initiatives. (Source)
2. Carbon Border Adjustment Mechanism (CBAM)
The CBAM is set to enter its enforcement phase on January 1, 2026. Importers will be required to purchase and surrender CBAM certificates annually, based on reported emissions. This mechanism aims to prevent carbon leakage by putting a fair price on the carbon embedded in imported products such as cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen. The CBAM is part of the EU’s Fit for 55 package, which seeks to cut emissions by 55% by 2030 compared to 1990 levels. (Source)
3. EU Bioeconomy Strategy and CRCF Regulation
The European Commission has adopted rules to implement the EU-wide voluntary certification framework for carbon removals and carbon farming, further supported by initiatives announced in the new EU Bioeconomy Strategy. The Implementing Regulation introduces transparency standards for certification schemes and sets out rules for the appointment and supervision of certification bodies, as well as for audit processes under the Carbon Removals and Carbon Farming (CRCF) Regulation. (Source)
Conclusion
The recent announcements by the European Union highlight a strong commitment to advancing carbon reduction strategies and enhancing sustainability. By finalizing certification methodologies, implementing the CBAM, and supporting carbon farming initiatives, the EU is taking significant steps towards achieving its climate neutrality goals by 2050.
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