Next EU climate target to allow carbon offsets from 2036, draft shows

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🗞️ Driving the news: The European Commission plans to allow EU countries to use international carbon credits — purchased from emissions-reduction projects in poorer countries — for up to 3% of their 2040 climate target, starting in 2036, according to a draft seen by POLITICO
• The proposed 2040 target aims for a 90% reduction in emissions from 1990 levels, but international credits would be explicitly excluded from the EU’s carbon market to safeguard its integrity and price signal

🔭 The context: The EU’s 2030 and 2050 targets are currently set to be met entirely through domestic measures, and scientific advisers have warned against weakening that approach
• However, some member states — most notably Germany — have argued for more flexibility to ease domestic pressure
• This comes amid wider resistance from France, Poland, and Hungary, which have called for delays and raised concerns about economic competitiveness and social impacts of higher targets

🌍 Why it matters for the planet: Permitting limited international credits could increase financial flows to climate projects in developing nations while giving EU governments more room to maneuver
• However, critics caution it may slow the bloc’s domestic decarbonization and undermine climate ambition
• The exclusion of credits from the EU carbon market mitigates risks to the carbon price, which is a central tool for emissions reduction
• Robust standards and oversight will be key to ensuring environmental integrity

⏭️ What's next: The Commission is expected to formally unveil its 2040 target and accompanying policy package this Wednesday
• Draft legislation to regulate the use of international credits — including criteria for quality and origin — will follow after further assessments
• Negotiations with member states are likely to be contentious, with governments expected to push for further concessions or safeguards before endorsing the package

💬 One quote: “A 90% target puts the EU on the pathway which provides the greatest overall benefits in terms of competitiveness, resilience, independence, autonomy, a just transition and ensuring that the EU meets its commitments under the Paris Agreement,” the draft asserts

📈 One stat: The EU plans to meet up to 3% of its 2040 emissions reduction target — equivalent to around 150 million tonnes CO₂e annually based on 1990 levels — using international carbon credits

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