Reliable monitoring, reporting and verification (MRV) systems are essential for ensuring that carbon farming delivers measurable climate benefits. However, collecting data, monitoring changes in soil carbon and verifying results can involve substantial costs for farmers and project developers. As the EU moves towards implementing its Carbon Removals and Carbon Farming (CRCF) Regulation, finding sustainable ways to finance these activities is becoming increasingly important.
A new review by Jana Poláková and several MARVIC colleagues, recently published in the journal Frontiers in Climate, examines the financial mechanisms needed to support credible MRV systems while keeping carbon farming economically viable for farmers and land managers. The study explores how the financing of carbon farming practices and MRV activities are interconnected, and how public and private funding can work together to support their implementation.
The researchers conducted a structured literature review, analysing 122 studies selected from scientific publications covering carbon farming practices, MRV frameworks, policy instruments, and associated costs and challenges. Their findings identify a structural accuracy–cost tension: more rigorous monitoring increases the credibility of certified carbon removals and emission reductions, but also raises implementation costs, potentially discouraging farmer participation. This challenge is particularly relevant for result-based payment schemes, where farmers may need to invest in new practices and monitoring activities long before receiving compensation for verified carbon benefits.
To address this barrier, the authors emphasise the importance of combining different financial mechanisms. Publicly funded advisory services can help farmers navigate complex MRV requirements, while collective monitoring arrangements can distribute costs across multiple participants and particularly support small-scale farmers. Combining public funding, private investment and shared monitoring infrastructure can also help manage financial risks and improve access to carbon farming schemes.
Overall, the findings highlight the need to integrate MRV financing into carbon farming project design from the outset, while moving beyond carbon-centric approaches to better recognise co-benefits such as soil health, biodiversity and climate resilience. By aligning financial support with robust monitoring requirements, farmers’ practical needs and complementary EU policies, the study provides valuable insights for strengthening the credibility, accessibility and long-term viability of carbon farming across Europe. Follow this link to read the full article.
