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.
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.
Relevant: EU Parliament Backs Plan To Simplify Carbon Border Adjustment Mechanism
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.”
Clean Air Task Force (CATF) welcomes the European Commission’s proposed 2040 climate target but warns that including international credits and other flexibility mechanisms risks weakening the EU’s climate integrity.
Codie Rossi, Europe Policy Manager, CATF, commented: “International carbon credits might offer short-term relief, but they don’t build the infrastructure or technology the EU needs to thrive in a low-carbon world. The EU has a chance to show what a climate-smart, innovation-driven economy looks like. Let’s not miss it.”
“The EU should absolutely support climate action abroad—but not by offshoring its own responsibility,” Rossi added.
Meanwhile, South Pole CEO Dr. Daniel Klier praised the decision, stating that ““Including international carbon credits as part of the EU’s 2040 climate target is a pivotal moment for global carbon markets. This is exactly what Article 6 of the Paris Agreement was designed for, and now, we may finally see this mechanism work in practice.”
“Article 6 offers countries the opportunity to spearhead economic growth and competitiveness as part of their net zero ambitions. As governments work to finalise their NDCs by September, it’s essential that all tools at our disposal are utilised to reduce emissions. The EU’s proposal sends a clear signal that robust high-integrity carbon credits are both viable and desirable,” Klier said.
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
