EU plans to add carbon credits to new climate goal, document shows

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🗞️ Driving the news: The European Commission will propose on July 2 a legally binding 90% net greenhouse‑gas emissions reduction by 2040 versus 1990 levels, paired with new flexibilities
• The plan includes permitting up to 3% of emission reductions to be met by "high‑quality international carbon credits” starting in 2036, alongside allowing credits for CO₂ removals and broader sectoral flexibility

🔭 The context: The original 90% emissions reduction target faced resistance from several member states (Italy, Poland, Czech Republic), citing economic pressures
• In response, Brussels has considered easing requirements through carbon credits and tailored domestic targets
• However, EU scientific advisers have cautioned against weakening the target, warning credits may divert investment from essential domestic emissions reductions

🌍 Why it matters for the planet: Inclusion of international credits could mobilize financing for sustainable development projects abroad, but it risks undermining deep decarbonization at home if abused
• The credibility of international credits remains under scrutiny — past scandals exposed weak implementation and poor environmental integrity
• The outcome may influence EU climate leadership ahead of COP30 and global climate finance debates.

⏭️ What's next: The Commission’s proposal will enter trilateral negotiations with the European Parliament and member states, who could adjust the role of credits and sector-specific flexibility
• Denmark’s upcoming EU presidency and COP30 host Brazil are likely to influence the balance between ambition and flexibility
• Negotiations will intensify before submission of combined 2035 and 2040 targets ahead of COP30 in November

💬 One quote: “Using international carbon credits to meet this target… could undermine domestic value creation by diverting resources from the necessary transformation of the EU’s economy.”
— European Scientific Advisory Board on Climate Change

📈 One stat: Up to 3 % of the 2040 emissions reductions — equivalent to about 2.7 GtCO₂e from a 90% 1990 baseline — could be covered by international carbon credits

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