Wetlands in the Carbon Removals and Carbon Farming regulation

When protected, restored, or sustainably managed, wetlands and peatlands in particular can act as highly effective carbon stores and sinks while also supporting unique biodiversity, water and nutrient regulation, and other ecosystem services. Peatlands are among Europe’s most carbon-rich ecosystems, yet nearly 50% of them are degraded due to agriculture, forestry, and peat extraction.

Covering approximately 594,000 km² in the EU, degraded peatlands are responsible for around 5% of total EU greenhouse gas (GHG) emissions. Rewetting drained peatlands represents a key nature-based solution to reduce the ongoing CO2 emissions from drained peat soils. Just as importantly rewetting peatlands restores natural water regulation, strengthening resilience to climate change by helping landscapes better cope with droughts and heavy rainfall. It also supports biodiversity recovery and can provide livelihood opportunities through e.g. paludiculture and ecotourism.

The Carbon Removals and Carbon Farming Regulation (CRCF) provides an opportunity to scale up action by recognising and certifying emission reductions, carbon removals, and sustainable land practices. The European Commission is currently developing a draft Delegated Act establishing carbon farming certification methodologies, which will include a methodology for peatland rewetting. Once adopted, these methodologies will provide the EU’s reference criteria for the certification of peatland-related carbon credits and for the credibility of credits and claims in European carbon markets. If well implemented, the CRCF can unlock private finance and promote high- integrity, results-based mitigation in line with broader EU environmental goals.

In line with the ongoing process of CRCF implementation consisting of the Expert Group meeting on the draft Delegated Act, planned for the 5th and 6th of February 2026, as well as the public consultation, this paper aims to inform on points of contention for the Delegated Act regarding peatlands, and the areas to look out for throughout the implementation of the CRCF.

Read the full paper below: