Hello,
The EU just made carbon removals official.
On January 23, the European Commission adopted the first carbon farming methodologies under the Carbon Removal Certification Framework. This gives forest carbon projects a clear rulebook. No more guessing what counts.
The methodologies cover peatland rewetting, afforestation, and soil carbon in agriculture. Permanent removal methods like biochar and direct air capture will follow separately. For forest owners exploring carbon revenue, this changes everything. You now have official EU standards to work with.
Here's what's moving European forestry this week:
🔍 The Big Story
EU Adopts First Carbon Farming Methodologies
The European Commission published the first carbon farming methodologies under the Carbon Removal Certification Framework (CRCF) on January 23, 2026. Forest-based carbon projects now have official EU rules.
What's covered now: The adopted methodologies define how to measure and verify carbon removals in land-based categories:
Peatland rewetting and restoration
Afforestation, reforestation, and agroforestry
Soil carbon in agriculture
What comes next: Permanent removal methodologies are expected to follow in 2026. These will cover:
Biochar application
BECCS (bioenergy with carbon capture)
DACCS (direct air carbon capture)
The quality standard: All projects must meet four criteria, called QU.A.L.ITY:
Quantification — use conservative baselines and transparent accounting
Additionality — removals must go beyond business as usual
Long-term storage — prove durability and manage reversal risks
Sustainability — protect biodiversity, water, soil, and communities
For existing projects: A transitional regime lets early projects join the framework. They must meet the new methodologies to qualify.
Why this matters: Before January 23, EU carbon farming had no official standard. Voluntary markets used different rules. Buyers couldn't compare projects easily. Now there's one EU benchmark for land-based removals.
The practical impact: Forest owners developing afforestation or agroforestry projects can align with CRCF from day one. This makes credits more credible to European buyers. It also positions projects for future EU carbon market integration.
The bottom line: EU carbon removal rules are no longer theoretical. The framework exists. Carbon farming methodologies are published. Forest owners can start building projects that meet official standards. Source: Carbon Pulse, European Commission
📊 Quick Hits
1. 🇸🇪 Sweden's Forest Industry Faces €180M+ Annual Cost Surge
EU emission rules and transport fees will add 2 billion Swedish kroner in annual costs. That's roughly €180 million hitting Swedish forestry in 2026.
The drivers: The EU Emissions Trading System now covers more activities. Transport fuel costs jumped. Together, these squeeze margins across the sector.
The context: This comes after Storm Johannes caused 10 million m³ of damage. Swedish forestry faces cost pressure from both directions.
The takeaway: Nordic wood products will need to pass costs forward or absorb margin losses. Watch for Swedish price movements in coming months. Source: Wood Central
2. 🇫🇮 Finnish Lumber Exports to China Jump 30% in December
Finland shipped 30% more lumber to China in December 2025. Prices fell 2% despite the volume increase.
What it means: Chinese demand for Nordic softwood remains strong. But buyers have pricing power. Volume growth doesn't guarantee revenue growth.
The broader trend: Russia's reduced market access keeps shifting trade flows. Nordic suppliers fill gaps left by sanctioned Russian wood.
The takeaway: Finnish mills are winning volume but competing on price. The China market rewards scale and consistency. Source: Lesprom Network
3. 🇫🇮 Rottneros Forecasts Negative Q4 EBITDA
Swedish pulp producer Rottneros expects negative EBITDA for Q4 2025. Weak pulp markets and currency impacts drove the forecast.
The response: The company's savings program should cut annual costs. But near-term pressure remains.
Why it matters: Rottneros reflects broader Nordic pulp market weakness. Fiber demand hasn't recovered to pre-2023 levels.
The takeaway: Pulpwood sellers face continued pressure. Don't expect pulp prices to rescue timber markets soon. Source: Lesprom Network
4. 🇫🇮 Ponsse Plans Up to 90 Days of Layoffs in 2026
Forest machine maker Ponsse will implement temporary layoffs in 2026. Up to 90 days of reduced work affects roughly 1,086 Finnish employees.
The reason: Weak demand for forestry machines. Order backlogs fell amid reduced timber harvesting volumes.
What's excluded: Ponsse's tech subsidiary Epec Oy continues normal operations.
The signal: When machine makers cut shifts, forest owners are delaying equipment purchases. Capital spending remains cautious across the sector.
The takeaway: Don't expect a quick recovery in mechanization investment. Budget accordingly for 2026 equipment decisions. Source: Forest Machine Magazine
5. 🌍 New Report: $30 Flows to Harm Nature for Every $1 to Protect It
The UN's State of Finance for Nature 2026 report reveals a stark gap. In 2023, $7.3 trillion flowed to activities harmful to nature. Only $220 billion went to nature-based solutions.
The ratio: For every dollar protecting nature, thirty dollars damage it.
The target: Investment in nature solutions needs to reach $571 billion annually by 2030. Current flows cover less than 40% of that.
One bright spot: Over 730 organizations now align with TNFD reporting. They represent $22.4 trillion in assets.
The takeaway: Capital markets are slowly shifting. But the gap remains massive. Forest owners with nature-positive projects can tap growing demand. Source: UN News
📅 The Weeks Ahead
January 28, 2026: Verra Stakeholder Webinar — review processes and methodology updates (17:00 CET)
January 31, 2026: Verra Nature Framework — Expression of Interest deadline
February 3-6, 2026: Eurobois — Lyon, France (Fordaq stand 6E115)
February 9, 2026: ATIBT Timber Trade Portal workshop — EUDR preparation
March 4-5, 2026: RFSI Europe — Brussels, regenerative agriculture investment
May 1, 2026: FSC Hungary Interim Standard takes effect
December 30, 2026: EUDR deadline for large and medium operators
💡 One Thing to Try This Week
Review the CRCF quality criteria against your operations. The EU just published official standards for carbon farming. See if your land could qualify.
Fifteen minutes of clarity:
Check if you have afforestation or restoration projects underway
Review the QU.A.L.ITY criteria — can you prove additionality?
Assess your baseline data — do you have pre-project measurements?
Consider your monitoring capacity — can you track long-term storage?
Note any biodiversity or water concerns that might affect sustainability checks
The CRCF creates a clear path for EU-recognized carbon credits. Early movers who align now will have verified projects when demand peaks.
You don't need to act today. But knowing where you stand helps planning.
Until Thursday!
Wish you all the best: Peter
P.S. What’s the biggest challenge you’re facing in forestry right now?
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