• The EU may allow international carbon credits to offset part of its 2040 emissions goals — a shift from its domestic-only approach.
• A dual-track target is under discussion: a lower domestic cut paired with external credit use.
• Critics warn of fraud, price collapse, and weak accountability linked to international credits.

The European Commission is weighing a major shift in its climate strategy — allowing international carbon credits to count toward its 2040 emissions goal, per sources familiar with the talks.

“We are sensitive to requests for a bit of pragmatism,” said EU Climate Commissioner Wopke Hoekstra, who emphasized that a 90% cut is still the Commission’s “starting point” as formal proposals take shape ahead of summer.

EU climate policy has so far relied exclusively on domestic emissions reductions. This marks a potential break from tradition — and a reopening of the door to credits from global projects like forest restoration in Brazil.

• The Commission is exploring a two-part plan:
  • A domestic emissions cut lower than 90%
  • The ability for countries to meet the rest of the goal using international credits

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The use of global credits could ease pressure on member states’ industries — but it also risks undermining the integrity of EU climate targets.

“The list of scandals linked to international credits is long—fraud, lack of environmental integrity, and the drastic collapse of the EU carbon price,” warned Linda Kalcher, Executive Director of Strategic Perspectives.

The EU banned these credits in 2013 after a wave of low-quality entries crashed the carbon market. Today, stricter global safeguards are in development under UN guidance to ensure better accountability.

Some analysts argue the move could enhance the EU’s soft power in climate negotiations.

“In my opinion, the countries at the other end of the negotiations would welcome this, because they are badly in need of climate finance,” said Andrei Marcu, Executive Director of ERCST.

The formal 2040 climate target must still be approved by EU member states and the European Parliament. A detailed proposal from the Commission is expected before summer.

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