Carbon Market Watch’s position on the use of international carbon credits to outsource the EU’s 2040 climate target

Carbon Market Watch opposes the use of international carbon credits to meet the EU's 2040 climate target, arguing that such a strategy would result in higher EU emissions, shift responsibility to the Global South, and undermine industrial competitiveness. The organization asserts that current carbon credit markets lack sufficient quality and transparency. While primarily advocating for a fully domestic approach, the document outlines strict quality criteria and a centralized purchasing mechanism that should be implemented if the EU proceeds with international credits as a last resort.

• Using international carbon credits to meet the 2040 target would lead to higher emissions within the EU compared to a fully domestic strategy. Specifically, if the EU used Article 6 credits to offset 5% of its 1990 net emissions, emissions in 2040 would be 50% higher than under a domestic-only approach.
• The use of international credits shifts the burden of the EU's domestic emissions to communities in the Global South and may hinder those countries from achieving their own climate goals because sold credits must be subtracted from their own greenhouse gas accounts.
• Relying on international credits is estimated to cost the EU approximately €50 billion, assuming a conservative price of €70 per credit. This expenditure is described as a quarter more than the ETS Innovation Fund budget for 2020-2030, which is €40 billion.
• Current carbon credit markets, including those under the Article 6 framework of the Paris Agreement and the voluntary carbon market, are deemed insufficient in quality and fail to reliably reflect real emission reductions or removals.
• If the EU does use international credits, they should be limited to permanent carbon dioxide removals to avoid locking in fossil fuel production. These credits must meet strict criteria, including ensuring at least half of mitigation benefits are retained by host countries and at least 5% are delivered to the UN Adaptation Fund.
• Any optional purchase of international credits should be managed through a centralized EU purchasing platform, funded by member states based on quantified demands and national limits. Credits should only be used toward target achievement if purchased after 2036.
• International credits should be excluded from the EU Emissions Trading System (ETS) and reserved only as a last resort for national targets in unavoidable cases, such as shortfalls in the Land Use, Land Use Change and Forestry sector caused by climate change.

APA

Carbon Market Watch (2026). Carbon Market Watch’s position on the use of international carbon credits to outsource the EU’s 2040 climate target. https://carbonmarketwatch.org/wp-content/uploads/2026/04/CMWs-position-paper-on-2040-climate-target-and-international-credits.pdf

Chicago

Carbon Market Watch. Carbon Market Watch’s position on the use of international carbon credits to outsource the EU’s 2040 climate target. 2026. https://carbonmarketwatch.org/wp-content/uploads/2026/04/CMWs-position-paper-on-2040-climate-target-and-international-credits.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=Carbon Market Watch’s position on the use of international carbon credits to outsource the EU’s 2040 climate target |date=April 2026 |url=https://carbonmarketwatch.org/wp-content/uploads/2026/04/CMWs-position-paper-on-2040-climate-target-and-international-credits.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2026carbon, author = {{Carbon Market Watch}}, title = {{Carbon Market Watch’s position on the use of international carbon credits to outsource the EU’s 2040 climate target}}, publisher = {Carbon Market Watch}, year = {2026}, month = apr, url = {https://carbonmarketwatch.org/wp-content/uploads/2026/04/CMWs-position-paper-on-2040-climate-target-and-international-credits.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }