Agroforestry Carbon Farming Q&A

This Q&A has been developed to address the basic questions that our members (and non-practitioners) may have on the subject. If you would like a deeper dive into the topic, we encourage you to consult our “further reading” section, or the projects mentioned throughout the document.

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Background

1) What is carbon farming? ↓

Carbon farming is a set of land management practices to store carbon in the soil, crop roots, wood and leaves, and harvested wood products like timber and biochar (including branches and produce made from wood before it is harvested), and also to reduce the emission of greenhouse gases like nitrous oxide and methane. It is a natural form of carbon removal (in contrast to Carbon Capture and Storage/Utilisation – CCS/CCU, which use chemical or physical technologies to capture carbon). By adopting practices such as agroforestry, no-till farming, cover cropping, and rotational grazing, farmers can improve the resilience of their land to climate change, support sustainable food systems, and contribute to a more balanced and thriving ecosystem.

2) How is carbon farming connected to agroforestry? ↓

Carbon farming and agroforestry are interconnected in that they both aim to enhance carbon net removals. Agroforestry integrates trees and shrubs into agricultural systems, which increases carbon storage in vegetation and soil. This practice supports carbon farming by capturing more atmospheric CO2, thus helping mitigate climate change while also improving farm productivity and biodiversity. Furthermore, agroforestry is often referred to as the first amongst several methods of carbon storage by the European Commission and others, and is the most heavily profiled toolbox in the recent CRCF (Carbon Removals and Carbon Farming) methodologies.

3) Does carbon farming work?↓

Yes, carbon farming works by implementing practices that capture and store carbon in soil and vegetation, effectively reducing greenhouse gas levels. Techniques like cover cropping, reduced tillage, and agroforestry are proven to enhance soil carbon storage and improve soil health. However, the success of carbon farming depends on factors like proper management, local conditions, and long-term commitment, making it essential to tailor practices to specific landscapes and continuously monitor their effectiveness.

Relevance and benefits

4) How does carbon farming help combat climate change? ↓

Carbon farming helps combat climate change by capturing and storing atmospheric carbon dioxide (CO2) in soil and vegetation. This process reduces the amount of CO2 in the atmosphere, thereby mitigating the greenhouse effect and global warming. Additionally, carbon farming practices often improve soil health, increase biodiversity, and enhance ecosystem resilience, further contributing to climate change adaptation and mitigation, often referred to as adaptation measures.

5) What are the co-benefits of carbon farming beyond carbon sequestration? ↓

6) Is carbon farming economically viable for farmers? ↓

Yes, soil health and water management associated with carbon farming can lead to increased and more stable crop yields, enhancing farm profitability. Cost savings in inputs and diversified income streams further contribute to providing the farm long-term viability. In addition, it is possible to receive revenue from Carbon Credits, which reward good practices with financial benefits. However, it is important to note initial startup costs, which might mean that profit will not be immediate.

MRV (Monitoring, Reporting, and Verification)

7) How is carbon sequestration measured in carbon farming? ↓

There are several established methods to quantify the amount of carbon stored in soil and biomass. These methods include soil sampling (where field samples are taken), remote sensing and GIS (drones use aerial imaging), biomass measurement (calculations made based on size of vegetation). Each method has different costs and advantages/disadvantages. There is also a growing industry of Carbon Accounting Models and tools, many of which are available at: Tools and Data Catalogue – DigitAF.

8) What are the challenges associated with carbon farming? ↓

There currently are some challenges with carbon farming. Accurately measuring and verifying carbon sequestration can be complex and costly, due to differences in soils, climate, and farming methods. Initial startup costs such as cover crop seeds or planting trees can take years before they are profitable, making it difficult to engage in certain carbon farming methods on rented land or where land rights are not well-defined. In addition, the MRV (Monitoring, Reporting, and Verification) processes for carbon farming present significant challenges. These processes require consistent, long-term data collection and advanced technologies like remote sensing or soil sampling, which can be expensive and difficult to implement on a large scale, especially for small farms. Other challenges may include the knowledge and training necessary to engage in carbon farming and government policies (addressed later in the document). For more information on MRV, please read Policy Brief #20.

9) What do the terms permanence, reversibility, and additionality mean, in regards to Carbon Farming?

Permanence refers to how long carbon is stored. Biochar (a stable, carbon-rich material made by heating biomass without oxygen, used to store carbon and improve soil health), direct air capture, and mineralisation can store carbon for hundreds or even tens of thousands of years. While this gives a “permanent” solution, the entire capacity of all existing “permanent” solutions (as of 2021) is 10.000 tons. To put this in scope, however, 1 billion tonnes of storage is needed, meaning 100.000(!) times the current capacity. As such, nature based solutions with less permanence, such as carbon farming, are utilised.

In contrast is reversibility: if the trees are storing carbon, then a forest fire or destruction of the biomass can immediately release the carbon back into the atmosphere. This is one of the recent criticisms of nature based solutions and why it is important to engage in safe and efficient use of carbon storage.

Additionality refers to whether a carbon farming activity delivers climate benefits beyond what would have happened anyway under business-as-usual practices. This is a key requirement for credibility, particularly in carbon markets and certification schemes. In agroforestry and carbon farming, demonstrating additionality can be challenging, as many farmers already apply beneficial practices without formal recognition.

To learn more about additionality, we suggest reading about the agroforestry starter package, found here.

10) What role do EU and Member State policies and incentives play in carbon farming? ↓

The European Commission has integrated carbon farming into several key policies under the European Green Deal, which aims for the EU to become climate-neutral by 2050, including the Farm-to-Fork strategy, and the CAP (Common Agricultural Policy). In fact, Eco-schemes under the current CAP can provide direct payments to farmers who implement sustainable practices such as carbon farming as well as woody landscape-features as part of GAEC’s (Good Agricultural and Environmental Conditions). Payments for agroforestry establishment and annual maintenance are also made in 10 of the 28 EU administrations. Most recently, the CRCF (Carbon Removals and Carbon Farming) Regulation is creating the first EU-wide voluntary framework for certifying carbon removals, carbon farming and carbon storage in products across Europe. Publication of CRCF in the Official Journal occurred 12/2024, while certification should begin in 2026 following the adoption of the methodologies.. All these EU policies have been implemented, soon to be implemented, or updated within the last 5 years. For more details, we suggest reading Policy Brief #8.

Moving Forward

11) How can farmers get started with carbon farming? ↓

Although many farmers are currently practising carbon farming already, those who are interested in getting started can follow a series of steps to implement practices that enhance carbon sequestration in soils and vegetation. First, farmers must understand the basics of Carbon Farming. They should then evaluate their current farming practices, and develop a Carbon Farming plan. Next, the farmer should seek out financial support and incentives, as well as certification and carbon credits. Engaging with networks of other practitioners can often be very effective to understand best practices. We encourage you to follow the projects Carbon Farming MED, CREDIBLE, and MARVIC on social media to learn specifics.

12) What is the future outlook for carbon farming? ↓

The future outlook for carbon farming is promising, with strong potential for growth as it becomes an important tool in the fight against climate change. It is supported by key EU policies such as the European Green Deal and the Common Agricultural Policy (CAP), including CAP and State Aid funding, and is increasingly reflected in Member States’ National Energy and Climate Plans (NECPs). Future initiatives, such as the Agri-Food Just Transition Fund, could further strengthen the Carbon Removal and Carbon Farming (CRCF) framework and help decarbonise EU agriculture. New EU instruments are also helping carbon farming move from policy to practice, including the recently launched EU carbon credit Buyers’ Club, which aims to boost demand for high-quality carbon credits and attract private investment, creating new income opportunities for farmers and foresters. At the same time, the development of a Carbon Farming Registry will be essential to ensure transparent tracking of carbon removals, avoid double counting, and build trust in carbon markets (projects OGCR and CAFAMORE focus explicitly on the development of the future EU Carbon Farming Registry). While improving technologies and growing markets show that carbon farming is here to stay, its wider uptake will depend on addressing regulatory complexity, costs, and farmer participation.

Further Reading

#8 Agroforestry for carbon farming in the EU – history and policies (v4 28.3.24)
#17 Agroforestry in the revised LULUCF Regulation (v4 10.7.24)
#20 Initial approach to monitoring reporting and verification (MRV) of agroforestry carbon farming in the EU (v5 18.2.26)
#21 Landscape Features in the new CAP (v1 30.1.23)
#24 Agroforestry and Parliament’s report on Sustainable Carbon Cycles (v1 5.3.23)
#26 Agroforestry and the 2040 AFOLU net-zero target (v1 23.6.23)
#27 Agroforestry and adaptation to climate change (v2 31.7.23)
#28 Agroforestry and the EU Sustainable Finance Initiative (v3 5.2.25)
ResAlliance Factsheet #36 Carbon farming: is it the game-changer for agroforestry?

Sources

FAO, NRDC, World Agroforestry, USDA, IPCC, NOAA, EC, EP, EURAF Policy Briefings, CRCF Methodologies, Arbonics, Credible.

Contact

If you have particular questions you would like to have answered or you wish to be put in contact with experts in the field of agroforestry carbon farming, please reach out to [email protected]