EU is considering international_CO2 credits to meet new climate target, sources say

The European Commission is considering counting international carbon credits towards its next climate target, a move that could weaken the CO₂ reduction efforts it demands of domestic industries, sources familiar with the matter told Reuters. The idea is among the options being discussed by European Climate Commissioner Wopke Hoekstra with member countries and lawmakers in the bloc, some of whom oppose the EU’s 2040 climate target of cutting emissions by 90%, which the Commission had initially planned to propose. The Commission missed a deadline to publish the target last month and faces political opposition to the EU’s green agenda as climate change competes with other political priorities, including defence. Some governments and lawmakers also argue that EU green rules are hurting domestic industries reeling from U.S. tariffs and cheap imports. Five sources familiar with the discussions said the Commission is evaluating options including setting a 2040 emissions reduction target for domestic industries that is less than 90%, and letting countries buy international carbon credits to offset the rest. That would mean that EU countries could buy credits from projects that reduce CO₂ emissions abroad – for example, forest restoration in Brazil – and count those emissions reductions towards the EU target. A Commission spokesperson declined to comment on whether it is considering adding international carbon credits to the EU target.

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