The European Commission plans to allow a small portion of the EU’s 2040 climate goals to be met using international carbon credits, starting in 2036, Politico reported Monday.
According to a draft proposal obtained by Politico, the emissions-reduction target for the European Union (EU) will be set at 90% below 1990 levels — but up to 3% of that may come from overseas offset projects.
These credits would let the EU finance emissions-reducing projects in poorer countries and count the results toward its own targets, under Article 6 of the Paris Agreement.
However, they would not be eligible within the EU’s carbon market, which aims to maintain a strong carbon dioxide (CO2) price and motivate companies to reduce emissions.
“Starting from 2036, a possible limited contribution towards the 2040 target of high-quality international credits… of no more than 3%,” the draft reads, as cited by Politico.
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The Commission emphasizes that the use of offsets will be contingent on strict EU laws ensuring their quality, integrity, and origin.
Critics, including the EU’s own scientific advisory board, warn that even limited use of carbon credits could undermine domestic climate action and delay emission reductions within Europe.
“These international credits should not play a role for compliance in the EU carbon market,” the proposal clarifies.
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The offset plan is just one of 18 elements meant to make the climate package more acceptable to reluctant member states.
Others include expanding carbon markets to incorporate permanent carbon removals and promising “enhanced flexibility across sectors.”
Despite delays and opposition from countries like France, Poland, and Hungary, the Commission maintains that the 90% target offers the “greatest overall benefits” for the EU’s climate, economy, and energy independence.
Read more: Opinion: Carbon Removal Credits Are ‘In’ Not ‘Out’ And Europe Has A Huge Opportunity