First Milk backs tougher carbon standard ahead of 2027 shake-up

A new global standard on land use and carbon removals is set to reshape how dairy businesses measure net zero — and First Milk says the sector must be ready for tougher scrutiny.

The Land Sector and Removals Standard under the Greenhouse Gas Protocol takes effect from 1 January 2027.

It introduces stricter requirements for accounting for greenhouse gas emissions and carbon removals from land use, including soil carbon, with a stronger focus on site-specific data and transparent reporting.

The shift comes amid growing concern over the credibility of carbon claims in agriculture, particularly around soil carbon sequestration.

The updated framework is designed to ensure removals are evidenced more robustly and reported consistently alongside emissions.

First Milk has welcomed the move, arguing that dairy’s biological systems require a balanced and science-led approach.

Mark Brooking, the co-operative’s chief impact officer, said: “Dairy farming operates within a biological system. If we are serious about net zero, we must measure both emissions and removals properly.”

He said the new framework “raises the bar on evidence and transparency, particularly around soil carbon”, adding: “That’s important for the dairy industry because credibility matters.”

The standard aligns with First Milk’s regenerative farming programme, which underpins its target of reaching net zero by 2040.

Now in its fifth year, the programme covers around 100,000 hectares across the co-operative's membership base.

Farmers have committed to more than 300,000 regenerative actions aimed at cutting emissions intensity while improving soil health and resilience.

The scheme is built around six core focus areas — grazing management, sward diversity, lower carbon feed, reduced artificial fertiliser use, cow health and longevity, and the management of hedges and trees.

“Our regenerative farming programme is built around six ‘levers’, these being the areas we believe make the biggest difference to emissions intensity and soil health,” Mr Brooking said.

These measures are intended to reduce emissions per litre of milk produced while strengthening soil carbon stocks and biodiversity.

Financial incentives form a key part of the strategy. Regenerative activity has so far been rewarded through a milk price bonus linked to carbon removals.

From April 2026, the co-op will introduce an additional bonus to recognise emissions reductions as well.

Based on independently assessed annual carbon footprints, the average payment is expected to be 0.5ppl, with the opportunity to earn up to 1ppl for lower-than-average emissions intensity.

While modest in relation to overall milk price, the payment signals a shift towards rewarding measurable emissions performance as well as sequestration.

“The additional bonus indicates the environmental value created through farming systems working with nature,” Mr Brooking said.

He cautioned that removals alone would not deliver net zero. “Removals are important, but they cannot offset rising emissions. We need to reduce emissions intensity while improving soil carbon and natural capital. That balance is what credible net zero looks like.”

Alongside on-farm measures, First Milk is investing in energy efficiency and heat recovery at its creameries and working with haulage partners to cut transport emissions.

With the new global framework set to demand more rigorous evidence and reporting from 2027, dairy businesses may face greater data requirements and scrutiny of carbon claims.

Mr Brooking said the sector was well placed to adapt. "The Land Sector and Removals Standard signals a more rigorous future for carbon reporting in agriculture and British dairy farmers are well placed to respond."