Hello,
Brussels just changed the carbon credit game. November 20, the Commission adopted the first official EU framework for certifying carbon removals. The announcement came December 1. Forest projects can now get official "high-quality" labels. This creates real standards where none existed before.
Meanwhile, Austria's wood industry finished 2024 underwater. Metsä Group broke away from regional PEFC certification. And Italy's presidential estate became the first head-of-state residence with FSC certification.
Here's what's moving European forestry this week:
🔍 The Big Story
EU Adopts Carbon Removals Certification Framework – Creating "High-Quality" Standard
The European Union just created the first official definition of high-quality carbon removals. On November 20, 2025, the Commission adopted Implementing Regulation (EU) 2025/2358. The public announcement came December 1. This regulation establishes the rules for the voluntary Carbon Removals and Carbon Farming (CRCF) framework.
What it actually does: The regulation defines transparency standards for registries and certification bodies. It tells them exactly how to prove carbon removal projects meet EU quality standards. Applications for scheme recognition open in early 2026. Projects meeting CRCF standards get official EU endorsement.
Why this matters now: Before November 20, no official EU standard existed for "high-quality" carbon removal. Projects used voluntary standards like Verra or Gold Standard. Some used national systems. Others made their own rules. Buyers couldn't compare quality across different certification schemes.
The CRCF framework changes this. It creates one EU-wide definition of quality. Projects certified under CRCF can claim official EU backing. This likely drives a price premium versus non-certified credits.
The forest angle: Forest carbon projects form the core of EU carbon removal strategy. Afforestation, improved forest management, and wood product storage all qualify. The framework particularly benefits projects covering multiple countries. One CRCF certification now works across the entire EU rather than needing separate national approvals.
How certification works: Starting early 2026, certification bodies apply for CRCF recognition. The Commission evaluates them against the November 20 regulation standards. Approved bodies can then certify forest projects as CRCF-compliant. Forest owners submit project documentation. Certified bodies verify the carbon sequestration using standardized methods. Approved projects get listed in the EU registry.
What's required: Projects must demonstrate additionality (wouldn't happen without carbon finance), permanence (carbon stays stored long-term), and accurate quantification (real measurements, not estimates). They need monitoring plans covering decades. Third-party verification is mandatory. The standards are strict.
The price impact: CRCF-certified credits will likely trade at premium pricing. Buyers seeking EU compliance or corporate sustainability commitments prefer officially recognized credits. Forest projects meeting CRCF standards can charge more than non-certified alternatives. Early estimates suggest 20-30% premiums are possible once the market develops.
What this means for you: If you're developing forest carbon projects in Europe, CRCF certification provides competitive advantage. Start reviewing your project documentation against the November 20 regulation requirements. If you're considering carbon finance, wait for CRCF-certified projects rather than rushing into non-certified schemes. The premium pricing makes waiting worthwhile.
For existing projects using Verra or other voluntary standards, consider adding CRCF certification. The dual certification increases buyer confidence and pricing power. Projects covering multiple EU countries particularly benefit from one unified standard replacing separate national processes.
The timeline: Certification bodies begin applying for recognition in Q1 2026. First CRCF-certified projects likely appear mid-2026. Full market operation expected by end of 2026. The framework operates parallel to voluntary standards – projects can maintain existing certifications while adding CRCF recognition. Source: EU Climate Action - Carbon Removals Certification
📊 Quick Hits
1. 🇪🇺 EU Launches Bioeconomy Strategy to Replace Fossil Materials
The European Commission released November 27 its "Strategic Framework for a Competitive and Sustainable Bioeconomy." The strategy aims to strengthen Europe's industrial base by replacing fossil-based materials with renewable biological resources.
Key components: Creation of a Bio-based Europe Alliance to aggregate demand for bio-based solutions. Establishment of new lead markets for bio-based materials and technologies. Explicit positioning of sustainably managed forests as central to the EU's industrial transition.
The strategy provides the legal basis for future subsidies and incentives directed toward bio-based construction materials and biochemicals. Forest-based materials get priority treatment as replacements for concrete, steel, and plastics in construction applications.
EU Commissioner Roswall launched the strategy wearing a dress made from wood pulp – demonstrating the versatility of forest-based textiles beyond traditional timber products.
The takeaway: EU officially prioritizes forest-based bio-materials as fossil fuel replacements – expect subsidy programs targeting wood construction and biochemicals in 2026. Source: European Commission Press Release
2. 🇫🇮 Metsä Group Breaks from Regional PEFC to Create Own Certification Group
Metsä Group announced November 27 it will withdraw from the regional PEFC certification system to establish its own PEFC group scheme in 2026. The company cited insufficient commitment to compliance by other actors in the regional system as the primary driver.
The new scheme will cover Metsäliitto Cooperative's 90,000+ owner-members. Metsä stated it wants to "keep things in our own hands" and ensure consistent sustainability standards across its entire wood supply base.
This represents a major shift in Finnish forest governance. Regional PEFC systems pool multiple forest owners under shared certification. Metsä's departure creates a parallel certification structure controlled directly by the company.
The move signals growing frustration with multi-stakeholder certification systems when some participants don't maintain rigorous compliance. Metsä prefers direct control over sustainability verification rather than relying on regional enforcement.
The takeaway: Major Finnish forest company takes direct control of certification compliance, potentially setting precedent for other large operators frustrated with regional system governance. Source: Metsä Group Press Release
3. 🇦🇹 Austria's Wood Industry Still Underwater
Austria's wood industry finished 2024 with negative financial performance according to balance sheet analysis. Leading companies recorded negative balance sheet figures for the second consecutive year.
The Austrian industry faces pressure from high log prices combined with weak lumber demand and compressed margins. November 2025 spruce sawlog prices reached €120-123/m³ for A/B grade timber. But mills can't pass these costs to customers in collapsed construction markets.
The "still underwater" terminology indicates continued multi-year financial struggles rather than a new development. Austrian sawmills operate in challenging conditions despite relatively strong log markets compared to Germany's supply crisis.
The takeaway: Even Austria's relatively functional timber markets can't deliver profitability when construction demand remains weak across Europe. Source: Timber-Online
4. 🇮🇹 Italy's Presidential Estate Achieves FSC Certification
The Tenuta Presidenziale di Castelporziano near Rome became the world's first presidential residence to achieve FSC certification. The announcement came November 5, 2025. The certification covers approximately 6,000 hectares of Mediterranean mixed forest and maquis shrubland.
The estate sits on the Tyrrhenian coast near Rome. It contains ancient forests, coastal wetlands, and rare Mediterranean ecosystems. FSC certification required demonstrating sustainable forest management practices, biodiversity protection, and stakeholder engagement.
The certification carries symbolic weight beyond the actual timber volumes. It signals high-level political commitment to sustainable forestry and provides a demonstration site for Mediterranean forest management under international standards.
The takeaway: First presidential residence FSC certified – provides high-visibility example of sustainable management in Mediterranean ecosystems often overlooked in Nordic-focused forestry discussions. Source: FSC International
📅 The Weeks Ahead
December 3-5, 2025: 5th International Conference "WOOD-SCIENCE-ECONOMY" in Poznań, Poland – Sustainable solutions and digitalization in forest-wood sector
December 4, 2025: The Future of the Bioeconomy in Central and Eastern Europe in Budapest, Hungary
December 10, 2025: ThinkForest: Navigating through the EU forest-related objectives in Brussels, Belgium
December 16, 2025: EU-FarmBook Forum 2025 (online) – Turning knowledge into action for competitive farms and forests
Q1 2026: CRCF certification body applications open
💡 One Thing to Try This Week
Check if your forest carbon project can qualify for CRCF certification. The November 20 regulation creates the first official EU standard. Early movers get competitive advantage and premium pricing.
Twenty minutes, high-value assessment:
Review your current project documentation (if you have a carbon project)
Check against three core CRCF requirements: additionality, permanence, quantification accuracy
Identify gaps in monitoring or verification processes
Note whether you have third-party verification already
If you don't have a carbon project yet, this is your signal to start planning. CRCF certification provides official EU backing that voluntary standards can't match. Projects meeting these standards will command premium pricing once the market develops in 2026.
The EU just told you exactly what "high-quality" means. Meet that definition before your competitors do.
Until Thursday!
Wish you all the best: Peter
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