The European Commission has put forward a proposal allowing carbon credits purchased from developing countries to be counted towards the European Union’s 2040 climate target for the first time. The move, announced on Wednesday, has drawn criticism from campaigners and some scientists.
What are Carbon Credits?
Carbon credits, or offsets, involve funding projects abroad that reduce CO2 emissions as an alternative to cutting emissions domestically. Examples include forest restoration in Brazil or replacing petrol buses with electric ones in cities. The emission reductions achieved by these projects generate 'credits' that buyers can count towards their climate goals, while sellers receive funding for their green initiatives.
Supporters argue the system provides essential financing for climate efforts in developing nations and fosters international cooperation. However, the reputation of carbon credits has suffered due to several scandals where projects failed to deliver the promised environmental benefits.
Why is the EU Buying Them?
The European Commission proposes allowing up to 3% of the EU’s 2040 target — which aims for a 90% reduction in net emissions from 1990 levels — to be met through carbon credits bought from other countries. Currently, EU climate goals require emissions reductions to be achieved domestically.
The proposal comes amid geopolitical tensions and economic challenges across Europe, with countries like Germany and Poland pushing for a less stringent target. The Commission aims to maintain the ambitious 90% reduction while easing the domestic burden by incorporating carbon credits.
The EU member states and the European Parliament must still negotiate and approve the final target.
Risks and Concerns
While countries such as Germany welcome the use of carbon credits and project developers view it as a boost for climate finance, environmental campaigners warn the EU may be shirking its responsibility to cut emissions at home and relying on cheap, low-quality credits.
EU climate science advisors have also opposed the use of credits under the 2040 target, fearing it could divert investment away from local clean energy industries. The EU previously banned international credits in its carbon market after an influx of cheap, low-impact credits caused a crash in carbon prices.
To mitigate risks, the Commission intends to buy credits in line with global market rules and quality standards for carbon trading currently being developed by the United Nations. Brussels will also propose specific quality standards for the carbon credits the EU purchases next year.
What Will It Cost?
Prices for carbon credits vary widely, ranging from a few dollars per tonne of CO2 to more than a $100 depending on the project. To cover 3% of the EU’s 2040 target, roughly 140 million tonnes of CO2 credits would be needed — equivalent to the total emissions of the Netherlands last year.
A senior Commission official emphasised the EU’s determination to avoid purchasing cheap, low-integrity credits.
“The credits currently available on voluntary carbon markets are very inexpensive, likely reflecting a lack of strong environmental integrity,” the official said.
China has completed the first phase of its 6G technology trials, a key step in its bid to lead the global push toward next-generation telecommunicatio...
Iran has strongly rejected as “unfounded and irresponsible” a joint statement by the foreign ministers of the Group of Seven (G7) about Tehran’s...
Pakistan has accused Afghan nationals of carrying out two suicide attacks this week in Islamabad and South Waziristan, warning that Kabul must rein in...
Chileans will vote on Sunday in the country's first mandatory presidential election since 2012, with security and immigration shaping a race expected ...
Ukrainian President Volodymyr Zelenskyy and Azerbaijani President Ilham Aliyev have spoken by phone after debris from a Russian missile strike damaged...
China has completed the first phase of its 6G technology trials, a key step in its bid to lead the global push toward next-generation telecommunications networks.
Iran has strongly rejected as “unfounded and irresponsible” a joint statement by the foreign ministers of the Group of Seven (G7) about Tehran’s nuclear program and its alleged support of Russia in the war with Ukraine.
Pakistan has accused Afghan nationals of carrying out two suicide attacks this week in Islamabad and South Waziristan, warning that Kabul must rein in militants even as a ceasefire between the neighbours holds but remains fragile.
A Ukrainian drone attack early on Friday damaged a docked ship, apartment buildings and an oil depot in the Russian Black Sea port of Novorossiysk, a key outlet for Russian oil exports, injuring three of the vessel's crew members, Russian officials said.
MrBeast, the world’s most popular YouTuber, has officially launched his first theme park, Beast Land, in Riyadh, Saudi Arabia.
Russia’s Foreign Minister Sergei Lavrov has urged the U.S. to avoid actions that could intensify the war in Ukraine, citing President Donald Trump’s past support for dialogue.
Audi has unveiled the car that marks its first major step into Formula One. It presented the 2026 challenger at a launch event in Munich attended by drivers, team leaders and senior company executives.
A Türkiye-registered Air Tractor AT-802F crashed in western Croatia on Thursday, killing the pilot, local authorities and media reported.
U.S. envoy Jared Kushner met Israeli prime minister Benjamin Netanyahu on Monday as attention shifts to the tougher second phase of the Gaza ceasefire plan, with a standoff over roughly 200 Hamas fighters trapped in Rafah tunnels emerging as the immediate test.
Australia’s ambition to host the COP31 climate summit is under serious threat as a fierce competition with Türkiye heats up.
Indigenous protesters defended charging the gates of Brazil's COP30 climate summit on Wednesday and clashing with security a day earlier, saying the action was aimed at demonstrating the desperation of their fight for forest protection.
China’s carbon dioxide emissions have remained flat and slightly declined over the past 18 months, according to new analysis for climate publication Carbon Brief, marking what could be a historic shift in the world’s largest emitter’s energy and economic trajectory.
The United Nations Children’s Fund (UNICEF) Representative in Afghanistan, Dr Tajudeen Oyewale, expressed concern over Afghanistan's absence from the COP30 summit in Brazil, despite being one of the world’s lowest carbon emitters.
In southern Lebanon’s Bkassine forest, once famous for its pine nuts, a silent crisis is stripping trees bare and leaving workers without livelihoods.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment