On 2 July 2025, the EU Commission will present a proposal for the EU climate target for 2040 and a revision of the EU Climate Law. The proposal could include a 90 per cent reduction in greenhouse gas emissions by 2040 compared to 1990 levels. Another possible component of the proposal could be the use of international carbon credits under Article 6 of the Paris Climate Agreement.
In its Policy Brief ‘Conditions for Using International Carbon Credits towards the EU’s 2040 Climate Target’, Oeko-Institut today presents key conditions for the possible use of international carbon credits.
The most important recommendations at a glance:
• International carbon credits under Article 6 should only be used to go beyond the European Scientific Advisory Board on Climate Change's recommended target of a 90 to 95 per cent reduction by 2040 within the EU (more on this on the ESABCC website [https://climate-advisory-board.europa.eu/news/staying-the-course-on-climate-acti...]).
• The emission reductions realised under Article 6 should be distributed fairly between the EU, the partner country, the United Nations International Adaptation Fund and a contribution to the atmosphere.
• Carbon credits should be generated using the new Paris Agreement Crediting Mechanism (PACM) or standards with at least equivalent integrity. Temporary reductions or removals – such as those from forestry projects – should not be used to offset emissions from fossil fuels.
Dr Lambert Schneider states: ‘International carbon credits should not be a substitute for effective climate mitigation within the EU. They should only be used to go beyond ambitious domestic reduction targets and if they meet the highest quality standards and are shared fairly with partner countries.’
You can quote the above key points from the Policy Brief and the quote from Dr Schneider as a press release.
We also invite you to attend the webinar ‘The Commission proposal on an EU 2040 climate target – An initial assessment of key issues’ [https://www.oeko.de/en/events/the-commission-proposal-on-an-eu-2040-climate-targ...].
Friday, 4 July 2025, 11:00 a.m. – 12:00 p.m. (Central European Summer Time (CEST))
The webinar provides a preliminary analysis of the key elements of the European Commission's proposal for the new EU climate target for 2040: How ambitious is the new target? What role do international carbon credits under Article 6 of the Paris Agreement play? And how are the land use sector and international aviation and shipping accounted for?
Speakers: Dr Johanna Cludius, Jakob Graichen, Dr Lambert Schneider, Dr Hannes Böttcher (Oeko-Institut)
Please register here: [https://lets-meet.org/reg/a68a7111e7cb571243]
You will receive the link and access instructions by email after registering.
On the use of international emission credits: Dr Lambert Schneider, Research Coordinator for International Climate Policy at Oeko-Institut, l.schneider@oeko.de, tel.: +49 160 5333352.
On the ambition and further development of the EU climate target: Jakob Graichen, Senior Researcher in the Energy & Climate division at Oeko-Institut, j.graichen@oeko.de, tel.: +49 30 405085-366.
https://www.oeko.de/fileadmin/oekodoc/Conditions-for-using-international-carbon-... Policy Brief ‘Conditions for Using International Carbon Credits towards the EU’s 2040 Climate Target’
https://www.carbon-mechanisms.de/en/introduction/the-paris-agreement-and-article... Article 6 of the Paris Climate Agreement
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