The European Climate Law aims for climate neutrality in the land sector by 2035. The Carbon Farming business model is understood as a new innovative approach where farmers are compensated for reducing emissions or removing carbon through sustainable agricultural management.This document is framed in activity 2.1 of the Carbon Farming MED project, whose objective was to develop a review and description of the best-suited funding options for different types of Mediterranean farmers to successfully implement Carbon Farming as a business model and a technical analysis of the potential for implementing Carbon Farming activities in the Mediterranean due to its specific agroclimatic conditions in two key management systems for the region: regenerative agricultural and agroforestry systems. Finally, it was developed a revision of the current legal status of Carbon Farming activities in the European Union.The major findings of this document are:• Carbon Farming as a business model has a wide range of applications in the Mediterranean basin because it is one of the most important areas for developing agriculture worldwide. However, the effectiveness of Carbon Farming activities largely depends on environmental characteristics (climate and soil) and their proper implementation in region-specific sites.• There are different financing mechanisms (public, private, corporate supply chains and voluntary carbon market) available for farmers to generate income through Carbon Farming activities in the Mediterranean. However, one of the main barriers currently is having monitoring, reporting and verification (MRV) systems adjusted for the specific characteristics of the basin.• The Carbon Removals and Carbon Farming (CRCF) regulation provisional agreement can establish a regulatory framework that provides certainty, reliability, and transparency for certifying carbon removal. This will also create new business opportunities.