The European Union is contemplating a significant policy shift that could allow international carbon credits to count toward its 2040 climate target. This move would mark a departure from the EU’s traditional approach, which has relied solely on domestic emissions reductions. EU Climate Commissioner Wopke Hoekstra emphasized that the proposed 90% emissions reduction by 2040 remains the “starting point” for negotiations, with flexibility being considered to secure broader political support .
Under the potential dual-track approach, EU member states would aim for a reduced domestic emissions cut, supplemented by international carbon credits sourced from global projects such as forest restoration in Brazil. This strategy aims to ease the transition for domestic industries and address concerns over economic impacts.
However, the proposal has faced criticism from environmental groups and some policymakers. Opponents argue that relying on international credits could undermine the integrity of the EU’s climate goals, citing past issues with fraud and market instability associated with such credits.
The European Commission is expected to release a formal proposal before the summer, which will require approval from EU member states and the European Parliament. The outcome of this decision will significantly influence the EU’s path toward achieving its climate neutrality goal by 2050
