On 2 July 2025, the European Commission presented its 2040 climate target of reducing greenhouse gas (GHG) emissions by 90% compared to 1990 levels. One of the key elements of this strategy is the possibility of introducing international carbon credits. credits. If adopted, international carbon credits could contribute up to 3 % to the EU's overall emission reductions from 2036.

The European Commission's proposal to amend the European Climate Law, if adopted, will allow for the limited use of international carbon credits to contribute to the 2040 target of reducing emissions by 90 % compared to 1990 levels.

The current EU targets under the European Climate Law already include domestic carbon removals in the EU.1 The proposed amendment to the European Climate Law introduces from ^year 2036 possible limited use of international carbon credits, which can be obtained outside the EU provided they meet environmental and governance standards that have yet to be defined. These international credits could represent up to 3 % of the EU's overall 2040 emission reduction target: ²

• Criteria and standards : After an impact assessment, credits would be governed by “robust and high integrity” criteria to verify the origin, timing, and quality of credits. ³
• Alignment with the Paris Agreement : The use of international credits should be aligned with Article 6 of the Paris Agreement. ⁴

The Commission proposal will now be discussed under the EU's ordinary legislative procedure. Under this procedure, both the European Parliament and the Council must approve the proposal and can propose amendments. Initial reactions to the 2040 target included criticism from stakeholders for its lack of ambition and insufficiently detailed implementation. (More on lexology.com)