International Carbon Credits Must Complement, Not Replace, EU Climate Action
As part of the proposed revision of the EU Climate Law, European institutions have endorsed a binding target to reduce net greenhouse gas emissions by 90% by 2040 compared to 1990 levels.
The proposal also allows for up to 5% of the target to be achieved through high-quality international carbon credits, under Article 6 of the Paris Agreement, from 2036 onwards.
In its response to the European Commission’s call for evidence, CO₂ Value Europe stresses that international carbon credits can support global defossilisation efforts, but should remain complementary to emission reductions within Europe.
The Association welcomes the proposed 5% cap and calls on policymakers to ensure that international credits do not undermine investments in European defossilisation technologies and industrial transformation.
Balancing Emission Reductions and Carbon Removals
Carbon Capture and Utilisation (CCU) technologies primarily contribute to emissions reductions by replacing fossil-based feedstocks with captured carbon. Some pathways, such as CO₂ mineralisation using biogenic CO₂ or CO₂ from natural carbon cycles, can also deliver permanent carbon removals.
CO2 Value Europe believes both emissions reductions and carbon removals are needed to achieve climate neutrality. Future rules should therefore maintain a balanced approach that supports investment in both types of solutions and recognises the role of technology-based removals.
Four Principles for International Carbon Credits
CO2 Value Europe highlights four key requirements for any future international carbon credit framework:
- Limited Use: international credits should remain a small contribution to the EU climate target, ensuring that emissions reductions continue to take place in Europe.
- High Environmental Integrity: credits must demonstrate real, additional and measurable climate benefits.
- Support of European Investments: the framework should not make it easier or more attractive to shift climate efforts outside the EU.
- Robust Verification: credits must be transparent, traceable and easy to verify.
A Robust and Transparent Framework
CO2 Value Europe also calls for safeguards against double counting and for full alignment with existing EU legislation and certification frameworks.
As discussions continue, the Association encourages EU policymakers to develop a prudent, transparent and credible system that supports global climate action while preserving the EU’s leadership in industrial defossilisation and carbon circularity.
Find our full submission here.
