Carbon Farming Explained: How Irish Farmers Can Get Paid for Carbon

  • Glossary
  • ·Made for Ireland
  • ·Updated Mar 2026

Picture a farmer who gets paid not just for the cattle on the field, but also for the carbon their hedgerows, soil and woodland are pulling out of the atmosphere. That is the core idea behind carbon farming – a set of land management practices designed to increase the amount of carbon stored in soil and vegetation, with the farmer earning income for the climate benefit delivered.

Carbon farming is not a single technique. It is an umbrella term covering any practice that either reduces greenhouse gas emissions from agricultural land or increases the carbon sequestration happening in soils, trees and biomass. What makes it “carbon farming” rather than just “good farming” is the measurement, verification and financial reward that comes with it.

🌿 What Counts as Carbon Farming?

Many practices, alone or in combination, can qualify as carbon farming:

🌿 Cover cropping – planting crops between harvests to keep soil covered, prevent erosion and feed organic matter back into the ground
🌿 Reduced or no-till farming – minimising soil disturbance to preserve existing soil carbon and reduce oxidation
🌿 Hedgerow management – maintaining and expanding hedgerows as linear carbon stores and biodiversity corridors
🌿 Agroforestry – integrating trees into farming systems, combining carbon uptake with agricultural production
🌿 Multi-species swards – diverse grass mixes that build soil organic matter more effectively than ryegrass monocultures
🌿 Peatland rewetting – raising water tables on drained peat soils to stop carbon oxidation (see peatland restoration)
🌿 Improved fertiliser management – optimising nutrient application to reduce nitrous oxide emissions
🌿 Straw incorporation – chopping straw post-harvest and working it into the soil to build soil carbon

The common thread is that each practice either keeps carbon in the ground that would otherwise escape or actively pulls new carbon from the atmosphere into biomass and soil.

🌿 The EU Carbon Removals and Carbon Farming Regulation

In December 2024, the EU adopted the Carbon Removals and Carbon Farming (CRCF) Regulation (EU/2024/3012) – the first EU-wide voluntary certification framework for carbon removals, carbon farming and carbon storage in products. This regulation is a game-changer for Irish farmers because it creates a standardised, legally backed system for measuring and certifying the climate benefits of land management practices.

The CRCF framework requires certified activities to meet quality criteria covering quantification (accurate measurement of carbon removed or emissions reduced), additionality (the activity would not have happened without the incentive), long-term storage and sustainability. These criteria address a major weakness of earlier voluntary carbon markets, where the quality and permanence of credits varied widely.

The European Commission is finalising certification methodologies for carbon farming activities including agriculture and agroforestry, peatland rewetting and afforestation, with adoption expected in 2026. Once published, certification schemes can apply for Commission recognition, and the first certified carbon farming units are expected to be generated throughout 2026.

An implementing regulation adopted in November 2025 set transparency standards for certification schemes and rules for certification bodies and audits. By 2028, a union-wide registry will publish all certification information including the quantity, trading and retirement of certified carbon removal units. Group certification provisions will ease the administrative burden for small farmers and foresters.

🌿 Carbon Farming in Ireland

Ireland is actively developing its own carbon farming infrastructure. An Irish Carbon Farming Framework is currently in development, aiming to align with the EU’s CRCF system. Several pilot projects are already operating:

🌿 LIFE Carbon Farming – an EU-funded project testing carbon farming practices and certification approaches across multiple European countries, including Irish sites
🌿 FarmCarbon-EIP – a European Innovation Partnership project based in the Irish midlands, working with farmers on peatland agriculture and carbon sequestration practices
🌿 Peatland Finance Ireland – developing financial mechanisms to reward landowners for peatland-based carbon removals

Ireland hosted the 2nd European Carbon Farming Summit in Dublin in March 2025, bringing together researchers, policymakers and farmers to discuss the practicalities of scaling up carbon farming practices. The summit focused on moving from pilot-scale trials to commercially viable operations that can generate real income for farmers.

Existing Irish programmes already incorporate carbon farming elements without necessarily using the term. The Suckler Carbon Efficiency Programme aims to improve herd genetics for lower emissions per unit of output. The Straw Incorporation Measure pays tillage farmers to chop and incorporate straw into soil rather than baling and removing it, directly building soil carbon. Agri-environmental schemes under the Common Agricultural Policy increasingly reward practices that deliver carbon and biodiversity benefits.

🌿 The Business Case for Farmers

Carbon farming creates the potential for a new income stream alongside traditional agricultural payments. Under a certified framework, farmers could sell carbon credits to companies needing to offset their scope 1, 2 or 3 emissions, or receive results-based payments from government programmes.

However, challenges remain. Markets for certified carbon farming credits are still developing, and the price per tonne of carbon varies widely depending on the scheme and buyer. Monitoring, reporting and verification (MRV) can be costly for individual farms – which is why the CRCF Regulation’s group certification provisions are particularly relevant for Ireland’s many small and medium-sized holdings.

The agricultural sector contributed 37.8% of Ireland’s national greenhouse gas emissions in 2023, making it the largest emitting sector. Carbon farming alone will not solve this, but it offers a way for farmers to become part of the solution while maintaining productive land use and potentially improving farm profitability.

🌿 Frequently Asked Questions

🌿 Is carbon farming the same as carbon offsetting?

Not exactly. Carbon farming refers to the land management practices themselves. Carbon offsetting is the broader concept of compensating for emissions in one place by funding reductions or removals elsewhere. Carbon farming can generate offsets (in the form of certified carbon credits), but it also delivers on-farm benefits like improved soil health, water retention and biodiversity regardless of whether credits are sold.

🌿 Can Irish farmers earn money from carbon farming now?

Some income is already available through existing programmes like the Straw Incorporation Measure, agri-environmental schemes and pilot projects like FarmCarbon-EIP. However, a fully certified, market-based carbon farming income stream in Ireland is still in development. The EU CRCF certification methodologies for carbon farming are expected in 2026, which will enable the first formal certified units to be generated and traded.

🌿 Does carbon farming work on all types of land?

Different carbon farming practices suit different land types. Cover cropping and no-till work best on tillage land. Multi-species swards and hedgerow management apply to grassland. Peatland rewetting is specific to organic soils. Agroforestry can work across many farm types. The key is matching the right practice to the right site and integrating it with the existing farm system.

🌿 How is carbon farming verified?

Under the EU CRCF framework, accredited certification bodies carry out initial and ongoing audits to verify that carbon farming activities meet the required quality criteria. Monitoring combines on-farm measurements with remote sensing and modelling. The Commission is developing an EU Carbon Farming Database of emission factors and remote sensing data to make monitoring cheaper and more accessible for small operators.


Carbon farming connects to several related topics on this site. To understand the process by which carbon is captured in soil and biomass, see our guide to carbon sequestration. For the accounting framework that tracks land-based carbon flows, read about LULUCF. And to see how certification fights misleading environmental claims, visit our page on greenwashing.

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