{"id":25115,"date":"2025-10-17T01:00:13","date_gmt":"2025-10-17T06:00:13","guid":{"rendered":"https:\/\/blogs.edf.org\/climate411\/?p=25115"},"modified":"2025-10-24T11:34:42","modified_gmt":"2025-10-24T16:34:42","slug":"importing-carbon-international-credits-to-the-eu-how-to-make-it-work","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/climate411\/2025\/10\/17\/importing-carbon-international-credits-to-the-eu-how-to-make-it-work\/","title":{"rendered":"Importing international carbon credits to the EU: How to make it work?"},"content":{"rendered":"

By <\/span><\/span>Istv\u00e1n Bart<\/span><\/span><\/a> and <\/span><\/span>Pedro Martins Barata<\/span><\/span><\/a><\/p>\n

\"EU<\/a><\/p>\n

Join EDF on Monday, October 20 for the <\/span>webinar<\/span> \u201c<\/span>EU Pathways for International Carbon Credits<\/span>\u201d<\/span><\/a> on <\/span>Zoom<\/span>.\u00a0<\/span><\/span><\/em><\/strong><\/h5>\n

As the European Union sets a new climate goal for 2040, a key question is whether the EU should use carbon credits from outside Europe to help meet that goal. The European Commission\u2019s July 2025 proposal intends to reopen the door to credits for the first time in over a decade. Still, it remains vague on exactly <\/span>how <\/span><\/i>importing should be done \u2013 that is, who should import, how much and where should the imported credits be used? Now is the time to get the design right.<\/span>\u00a0<\/span><\/p>\n

EDF\u2019s latest publication, <\/span>\u2018<\/span>International Credits in the EU: Strategic Choices & Practical Implementation<\/span><\/i><\/a>\u2019, explores these questions.\u00a0 It argues that if done well, importing credits could be a practical way for Europe to keep target compliance costs manageable, protect its climate ambition, and increase its influence in international climate policy. But the details matter \u2013 doing it right means we\u2019d need strong rules on quality, clear conditions for if\/when credits would be used, and a coordinated EU system to manage purchases and credit use. <\/span>\u00a0<\/span><\/p>\n

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Why would the EU consider using international carbon credits?\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

In the early years of EU climate policy, companies could use credits from the UN\u2019s Clean Development Mechanism (CDM). Over time, concerns about integrity and an oversupplied EU carbon market led Europe to phase that option out. Fast-forward to July 2025: as part of setting a 2040 climate target, the European Commission proposes reopening the door \u2013 allowing, from 2036, a limited share of high-quality international credits under Article 6 of the Paris Agreement. The details are still to be confirmed, but the direction is clear: Europe is weighing whether to re-enter the international market as a buyer.<\/span>\u00a0<\/span><\/p>\n

The Commission\u2019s proposal does not spell this out, but there are three reasons why the EU could choose to import credits again:<\/span>\u00a0<\/span><\/p>\n

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  1. Cost containment: <\/span><\/b>Meeting the EU\u2019s proposed 90% climate target by 2040 is neither easy nor cheap, it requires a lot of investment.\u00a0 If these investments are delayed, this could result in higher allowance prices under the EU\u2019s emissions trading scheme or greater burdens in sectors outside it.\u00a0 High prices often create political backlash and thus threaten the feasibility of the climate target. Importing credits is one tool for avoiding high allowance prices or high compliance costs. <\/span><\/li>\n
  2. Leverage in international carbon markets:\u00a0<\/span><\/b>As a large buyer, the EU would be able to set the standards for credit quality \u2013 something that would have a global impact on carbon projects worldwide.<\/span><\/li>\n
  3. Climate finance:<\/span><\/b> If the EU does not use the purchased credits for its own targets, it could cancel them, thus effectively using the international carbon markets as a form of results-based international climate finance.\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

    Getting it right: What would it look like for the EU to use international credits?<\/span><\/span><\/strong><\/p>\n

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    Figure 1: Six scenarios for the EU\u2019s engagement in the international carbon market<\/em><\/figcaption><\/figure>\n