Carbon farming, a sustainable agricultural method, aims to sequester carbon dioxide from the atmosphere, mitigating climate change through regenerative practices that improve soil health and biodiversity while reducing GHG emissions. This research conducts a systematic literature review to identify various carbon farming practices and their potential contributions to climate goals and mitigation efforts. The systematic literature review investigated the relationship between prominent topics related to carbon farming and its practices. The Preferred Reporting Items for Systematic Reviews and Meta-Analyses were used for the review. SCOPUS database was utilised for its extensive coverage of scientific journals and high-quality data. Keywords such as “carbon farming”, “agriculture”, and “carbon sequestration” were selected based on their relevance to carbon farming and its promotion through the European Union’s Common Agricultural Policy 2023–2027. Specific criteria were applied to refine the selection process of articles, ensuring the selection of the most relevant ones. The analysis of articles reveals that each carbon farming method offers unique advantages and considerations for soil health and carbon sequestration. Tillage practices show promise in enhancing soil carbon levels despite potential drawbacks like soil compaction. Cover crops, perennial plants, agroforestry, and crop rotation each offer significant carbon sequestration potential.