Archive · 28 Jun 2025
EU Plans to Include Carbon Credits in Climate Target
The EU is working on a new climate plan for 2040.
They're thinking of letting countries and companies use 'carbon credits.'
These are like coupons earned by projects that reduce pollution, like planting trees.
The idea is to make it easier and cheaper for Europe to cut emissions, especially since some countries are worried about the cost and its impact on industries.
Starting in 2036, the EU would buy these credits to help meet its goals.
It's not a done deal, as EU countries and the Parliament still need to agree on the plan.
This could change how much European industries need to cut pollution themselves.
The European Commission plans to allow the use of international carbon credits to meet the EU's 2040 climate target.
The proposal involves purchasing 'high-quality international credits' from a U.N.-backed market.
Credits would be phased in from 2036, easing emissions cuts for European industries.
The proposal aims to address concerns from governments about the cost of the green transition and industries' competitiveness.
EU countries and Parliament must negotiate the final target, which could differ from the Commission's proposal.
- Who
- The European Commission is making the proposal; EU countries and the European Parliament will negotiate the final target.
- What
- The European Commission is proposing to include international carbon credits in the EU's 2040 climate target.
- When
- The proposal is set to be released on July 2, 2024, with credits phased in from 2036.
- Where
- The proposal is for the European Union.
- Why
- To ease emissions cuts and address concerns from governments and industries about the cost and competitiveness related to the green transition.
Proponents
Critics
Effectiveness of Carbon Credits
Proponents
Carbon credits provide funds for CO2-cutting projects in developing nations.
Critics
Some credit-generating projects did not deliver the claimed climate benefits.
- Target Year
- 2040
- Carbon Credits Source
- U.N.-backed international market
- Credit Use Start
- 2036
- Emissions Cut Target
- 90%
- Governing Bodies
- European Commission, EU countries, European Parliament
