Arbonics’ newly released “European Forest Carbon Credits 2025 Report” paints a detailed picture of a rapidly maturing voluntary carbon market, where European forests are emerging as key players in climate action.

With growing urgency to meet climate goals, nature-based solutions – especially forest carbon projects – are gaining momentum. The report highlights a turning point: Europe’s forest carbon credit sector is poised to scale, but only if trust, transparency, and robust science are at its core.

Key insights shared in the report

  • Nature-based Solutions (NbS) like forest projects now account for nearly 50% of all issued carbon credits globally, with a rising share in Europe.
  • Demand is returning after a turbulent 2023: project issuance is increasing, buyers are becoming more discerning, and prices are stabilizing.
  • The EU’s role is pivotal: Although regulatory uncertainty has slowed progress, upcoming frameworks like the EU Carbon Removal Certification Framework (CRCF) could provide clarity and drive investment.
  • Forest owners and land managers are central to success. The report calls for better incentives and streamlined processes to engage more of them in climate-positive forestry.
  • High-quality, European-focused methodologies will be essential to ensuring credibility, scalability, and alignment with EU climate goals.

So what’s in it for us?

Carbon markets are transitioning from experimentation to execution. European forest carbon credits offer an opportunity to align rural development, biodiversity, and business with climate ambitions – if built on trust and data.

This is exactly the kind of challenge the GFarm for LIFE project is addressing. Bringing together key stakeholders from science, business, and the public sector, GFarm for LIFE is developing a systematic model for the accurate and reliable assessment of greenhouse gases in agriculture, forestry, and other land use (AFOLU). What sets our project apart is its real-time alignment with emerging EU regulations, enabling direct engagement in shaping national strategies – potentially setting an example for all of Europe.

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Full Arbonics’ “European Forest Carbon Credits 2025 Report” is available here: https://www.arbonics.com/european-forest-carbon-credits-report/2025