EU Plans to Include Carbon Credits in New Climate Goal, Document Shows
The European Commission intends to propose counting carbon credits purchased from other countries toward the EU's 2040 climate target.
BRUSSELS: The European Commission is set to propose a policy that counts carbon credits bought from other countries toward the European Union’s 2040 climate goal, as indicated in a Commission document obtained by Reuters.
This proposal, scheduled for release on July 2, aims to establish a legally binding EU climate target for 2040.
Initially, the EU executive aimed for a 90 percent net emissions reduction compared to 1990 levels.
However, due to concerns from member states such as Italy, Poland, and the Czech Republic regarding the economic costs, the Commission has sought to make this goal more flexible.
According to an internal Commission summary of the upcoming proposal, the EU plans to utilize ‘high-quality international credits’ from a UN-backed carbon credits market to meet approximately 3 percent of the emissions cuts required for the 2040 target.
The implementation of these credits is set to commence in 2036.
Additional EU legislation will later define the origin and quality criteria that these credits must adhere to, as well as providing details on their procurement process.
This approach effectively reduces the immediate emissions cut requirements from European industries aiming to reach the original 90 percent target.
Proponents of carbon credits argue that they provide a crucial funding mechanism for CO2-reducing projects in developing nations.
However, recent scandals have exposed instances where some credit-generating projects did not deliver the expected climate benefits.
In an attempt to address resistance from governments struggling with the financial burden of the green transition alongside other priorities like defense and industries claiming that ambitious environmental regulation hinders their competitiveness, the Commission will introduce further flexibilities.
These include incorporating carbon credits from projects that remove CO2 from the atmosphere into the EU’s carbon market, enabling European industries to offset some of their own emissions by purchasing these credits.
The draft proposal also offers increased flexibility in determining which sectors within member countries' economies are required to achieve the 2040 goal, aiming for a cost-effective approach.
The Commission spokesperson has declined to comment on the upcoming proposal, emphasizing that it is still subject to change before its official publication next week.
Following this proposal, negotiations between EU countries and the European Parliament will take place to finalize the target and potentially amend any aspects of what the Commission proposes.
This proposal, scheduled for release on July 2, aims to establish a legally binding EU climate target for 2040.
Initially, the EU executive aimed for a 90 percent net emissions reduction compared to 1990 levels.
However, due to concerns from member states such as Italy, Poland, and the Czech Republic regarding the economic costs, the Commission has sought to make this goal more flexible.
According to an internal Commission summary of the upcoming proposal, the EU plans to utilize ‘high-quality international credits’ from a UN-backed carbon credits market to meet approximately 3 percent of the emissions cuts required for the 2040 target.
The implementation of these credits is set to commence in 2036.
Additional EU legislation will later define the origin and quality criteria that these credits must adhere to, as well as providing details on their procurement process.
This approach effectively reduces the immediate emissions cut requirements from European industries aiming to reach the original 90 percent target.
Proponents of carbon credits argue that they provide a crucial funding mechanism for CO2-reducing projects in developing nations.
However, recent scandals have exposed instances where some credit-generating projects did not deliver the expected climate benefits.
In an attempt to address resistance from governments struggling with the financial burden of the green transition alongside other priorities like defense and industries claiming that ambitious environmental regulation hinders their competitiveness, the Commission will introduce further flexibilities.
These include incorporating carbon credits from projects that remove CO2 from the atmosphere into the EU’s carbon market, enabling European industries to offset some of their own emissions by purchasing these credits.
The draft proposal also offers increased flexibility in determining which sectors within member countries' economies are required to achieve the 2040 goal, aiming for a cost-effective approach.
The Commission spokesperson has declined to comment on the upcoming proposal, emphasizing that it is still subject to change before its official publication next week.
Following this proposal, negotiations between EU countries and the European Parliament will take place to finalize the target and potentially amend any aspects of what the Commission proposes.
