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02 Jul
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EU to add international CO2 credits to next climate goal

EU Approves Limited Use of International Carbon Credits in 2040 Climate Target

Brussels, July 2, 2025 — The European Commission today announced a draft plan to cut net greenhouse gas emissions by 90% by 2040 compared to 1990 levels, marking a major milestone toward achieving full carbon neutrality by 2050.

For the first time, the plan would allow EU member states to meet up to 3% of these reductions through international carbon credits, such as verified forest conservation projects in developing countries. This option would become available starting in 2036, under strict environmental quality standards.

Countries like Germany, France, Italy, Poland, and the Czech Republic supported the measure, arguing that it gives industries with high energy costs more flexibility during the green transition. However, EU scientific advisers have warned that relying on foreign carbon offsets could divert investment away from domestic renewable energy and clean technology projects.

Negotiations on the proposal will now begin between EU member states and the European Parliament before final adoption. The bloc must also submit its 2035 climate target to the United Nations by September.