Eurogas Recommendations: International Carbon Credits

Read full Eurogas recommendations here.

Eurogas welcomes the flexibility to use of up to 5% of international carbon credits towards the 2040 Climate target. To ensure their effective operationalization, we would like to highlight the following points.

Benefits and Risks

Eurogas considers the introduction of international carbon credits to offer significant opportunities for investment and economic development beyond the EU, while fostering the deployment of innovative renewable and low-carbon technologies. At the same time, they can contribute to their ecosystem protection, restoration, and climate resilience, contributing to sustained global emissions reduction and climate mitigation activities. They can also assist non-EU countries in aligning with the objectives of the Paris Agreement (2015), foster the development of carbon pricing mechanisms, and strengthen global climate diplomacy.

In some cases, such instruments can represent a more cost-efficient pathway than domestic emissions reduction, thereby supporting EU competitiveness, as they can alleviate economic pressure on EU–based industry.

Finally, they may be perceived as more acceptable to EU citizens compared to certain domestic climate measures, as they can represent actual emissions reduction and ensure fair benefit sharing, thereby enhancing overall public support for climate action.

At the same time, while recognising that the use of international carbon credits may entail certain risks, Eurogas considers that a robust EU framework, building on Article 6 of the Paris Agreement, can effectively mitigate such uncertainties.

Determining the eligibility of international credits in the EU framework

International credits deployment in the EU

Download the recommendations below.