Godfather of EU carbon market says CO2 offsets deserve second chance

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🗞️ Driving the news: Jos Delbeke, a former top EU climate official, advocates for a reconsideration of international carbon credits in the EU's carbon market
• Despite past failures, Delbeke supports a careful reintroduction of these credits to meet the bloc's 2040 emissions-reduction target, stressing the need for strict quality control
• This approach contrasts with the opposition from green NGOs and the EU’s scientific advisors, who warn of undermining climate efforts

🔭 The context: Delbeke, instrumental in the creation of the EU’s Emissions Trading System (ETS), previously banned the use of foreign carbon credits due to their detrimental impact on market prices
• The failure of the Clean Development Mechanism (CDM), which allowed cheap credits to flood the market, led to the collapse of the ETS’s price signal
• However, a new global carbon credit system under the Paris Agreement has prompted Delbeke to reconsider, calling for stringent quality control over international credits

🌍 Why it matters for the planet: The reintroduction of carbon credits offers a potentially flexible mechanism for meeting ambitious EU climate goals, especially as the economic and geopolitical landscape evolves
• The concern remains that improperly regulated credits could dilute the effectiveness of the ETS, undermining efforts to decarbonize European industry
• Any decision must balance flexibility with ensuring the credibility of emissions reductions

⏭️ What's next: EU Climate Commissioner Wopke Hoekstra is set to unveil the EU’s 2040 climate target on July 2, which may include the use of international credits
• Delbeke’s proposals will likely fuel ongoing debates over how to integrate such credits into the EU's climate strategy
• Key stakeholders, including green NGOs and the European Parliament’s think tank, are expected to continue voicing concerns over their potential risks

💬 One quote: "If we are grown up in the discussion on carbon credits, being very restrictive on the quantity, very restrictive on the quality, it helps us to realize the targets that we are setting for ourselves in a world that is completely different from when we adopted the targets." — Jos Delbeke

📈 One stat: The EU Emissions Trading System (ETS) covers approximately 40% of the EU's total greenhouse gas emissions

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