Brussels drafts law outsourcing EU climate efforts to poorer countries

A draft European Commission proposal would allow limited use of international carbon credits to help meet the EU’s 2040 climate target of reducing emissions by 90% compared to 1990 levels.

Under the plan, countries could offset part of their emissions by funding climate projects outside the EU, typically in developing nations. This marks a shift from current rules, which require all reductions to be achieved domestically.

The final proposal is expected on 2 July. While still under discussion, the draft reportedly includes a cap of 3 percentage points for such credits, mirroring a similar limit in Germany’s coalition deal.

Supporters argue it offers flexibility, but critics warn it could delay domestic decarbonisation. France believes the proposed 3% limit is too low and has pushed for a higher cap. Several EU governments confirmed ongoing talks with Climate Commissioner Wopke Hoekstra on the issue.

via Politico