Legal framework for the possible use of international credits towards the 2040 EU climate target under the European Climate Law

Carbon Market Watch advises the European Commission against incorporating international credits into the EU's 2040 climate target. The organization argues that such a move would ignore scientific advice for 90-95% domestic emission reductions, violate the spirit of Article 6 of the Paris Agreement, and expose the EU to significant financial and reputational risks. The document highlights systemic failures in carbon credit integrity, including over-crediting and human rights violations, and estimates that relying on credits for 5% of the target could result in EU emissions being 50% higher than a fully domestic target, costing up to €49.7 billion.

• The use of international credits contradicts scientific recommendations from the European Scientific Advisory Board on Climate Change and over 2,000 scientists, who advocate for a 90-95% reduction in domestic emissions by 2040 without relying on flexibilities.
• Relying on international credits for up to 5% of the EU's 2040 target could lead to EU emissions being 50% higher than if the target were entirely domestic, with estimated costs reaching €49.7 billion (at €70 per credit).
• The document asserts that the EU is treating Article 6 of the Paris Agreement as a 'flexibility mechanism' rather than a tool to 'allow for higher ambition', which undermines the bloc's credibility as a global climate leader.
• Carbon credit markets suffer from widespread integrity issues, including a lack of additionality, over-crediting, and failures in permanence guarantees, as well as violations of the rights of Indigenous Peoples and local communities.
• The organization warns that purchasing international credits creates a recurring financial dependency and may crowd out necessary domestic investments in decarbonization and fossil fuel independence.
• Evidence provided in the document suggests that many carbon projects significantly overstate their benefits; for example, one analysis of a cookstove project in Myanmar found it poised to issue 26 times more credits than scientific literature supports.

APA

Carbon Market Watch (2026). Legal framework for the possible use of international credits towards the 2040 EU climate target under the European Climate Law. https://carbonmarketwatch.org/wp-content/uploads/2026/04/CMW-feedback-to-call-for-evidence-on-international-credits-in-2040-target.pdf

Chicago

Carbon Market Watch. Legal framework for the possible use of international credits towards the 2040 EU climate target under the European Climate Law. 2026. https://carbonmarketwatch.org/wp-content/uploads/2026/04/CMW-feedback-to-call-for-evidence-on-international-credits-in-2040-target.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=Legal framework for the possible use of international credits towards the 2040 EU climate target under the European Climate Law |date=18 March 2026 |url=https://carbonmarketwatch.org/wp-content/uploads/2026/04/CMW-feedback-to-call-for-evidence-on-international-credits-in-2040-target.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2026legal, author = {{Carbon Market Watch}}, title = {{Legal framework for the possible use of international credits towards the 2040 EU climate target under the European Climate Law}}, publisher = {Carbon Market Watch}, year = {2026}, month = mar, url = {https://carbonmarketwatch.org/wp-content/uploads/2026/04/CMW-feedback-to-call-for-evidence-on-international-credits-in-2040-target.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }