Climate campaigners and green groups are calling on the European Union to urgently introduce a bill for a 2040 greenhouse gas emissions reduction target. The second Commission under president Ursula von der Leyen has promised to follow the minimum recommendations for climate action by proposing a 90% net reduction goal for greenhouse gas emissions. However, recent signals from Brussels suggest that the EU executive may allow governments to use carbon credits from outside the bloc to meet the target, which could undermine domestic climate action.
Environmental groups are concerned about offsetting schemes, with Carbon Market Watch (CMW) publishing an analysis that suggested emissions reductions linked to a project in Myanmar had been overstated. This has raised fears that relying on international carbon credits could actually increase global emissions rather than reduce them. Despite the skepticism from environmentalists, the incoming grand coalition in Germany is pushing for flexibilities that could allow the use of carbon credits to cover a portion of the required emissions reduction.
The conservative European People’s Party has already called for carbon credits to be permitted, arguing that Europe must either lower its targets or include flexibilities to meet them. However, some are critical of this approach, warning that it could prioritize EU industry over effective climate protection. The European Commission plans to table a proposal for a 2040 target before the summer, but as of now, it is missing from the provisional agenda, which covers weekly meetings of the EU executive until the end of June.
The issue of carbon credits and international offsetting is a contentious one, with environmentalists and climate campaigners advocating for a stronger, more ambitious approach to climate action that does not rely on these mechanisms. The EU has been urged to set a binding climate target of at least a 90% reduction in emissions by 2040, with clear phase-out paths for coal, oil, and gas, as well as a faster expansion of renewable energy sources. The hope is that the EU will prioritize effective climate protection while also supporting the transition to a low-carbon economy.
The new coalition agreement in Germany commits the country to eliminating its carbon footprint by 2045, five years ahead of the EU net-zero target date. However, the agreement also supports the use of carbon credits to cover up to three percentage points of the required emissions reduction. This approach has been criticized by environmental groups as potentially undermining global emission reductions. The European Commission’s fixation on a 90% reduction target for 2040 has also been called into question, with concerns raised about the lack of targets beyond 2030.
Overall, the debate around carbon credits and international offsetting reflects a broader tension between the need for ambitious climate action and the desire to protect EU industry and competitiveness. Climate campaigners are calling on the EU to set a strong, binding climate target for 2040 that prioritizes effective emissions reductions and supports a rapid transition to a low-carbon economy. The coming months will be crucial in determining the EU’s approach to climate action and whether it will prioritize global emissions reduction over political and economic considerations.
