EU Reconsidering Carbon Credits in Climate Strategy Shake-Up

The European Commission is considering the inclusion of international carbon credits in its climate targets, a move that might ease domestic CO2-cutting demands but raise concerns over credibility. This proposal seeks to balance environmental goals with economic pressures, amid political opposition and international climate negotiations.

The European Commission is deliberating the potential integration of international carbon credits into its forthcoming climate objectives. This consideration comes as a strategic shift that may lessen the CO2-reduction responsibilities imposed on local industries, according to sources with direct knowledge of the situation, who spoke with Reuters.

Discussions led by EU climate commissioner Wopke Hoekstra have revealed options like a reduced emissions-cutting goal for 2040 and allowing nations to acquire carbon credits for offsetting. This move is a reversal from existing EU climate policies reliant on domestic efforts. Hoekstra maintains a 90% emissions cut as a discussion baseline, intending to propose it by summer.

Credibility concerns linger due to historical scandals involving carbon credits. The EU previously excluded international credits from its market following a debilitation of carbon pricing due to an influx of inexpensive credits. These options, while strategic, call for heightened scrutiny to ensure authentic climate benefits and robust global engagement.

(With inputs from agencies.)