International credits in EU climate policy: Old conflicts, new challenges

Felix Schenuit

No 28/2025, SWP Comments from Stiftung Wissenschaft und Politik (SWP), German Institute for International and Security Affairs

Abstract: In the discussions being held at EU level about the 2040 mitigation target, the role of international credits has recently taken centre stage. The new momentum in those discussions is due in part to the German government having announced its support for a mitigation target of a net 90 per cent greenhouse gas emissions reduction is conditional on up to 3 per cent of the target being achieved through international credits. How the target is to be drawn up and what it means for EU climate policy instruments will inevitably give rise to conflicts during the forthcoming legislative processes. Despite open questions about the quality, additionality and availability of the credits, it makes sense to hold a timely debate about their possible functions so that, if necessary, policy instruments can be further developed and corrections made later. It would be expedient to ensure that the use of international credits is focused on durable carbon dioxide removal technologies that are scalable only to a limited extent within the EU itself. Not only could international removal credits make a contribution to overcoming the challenges on the path to greenhouse gas neutrality by counterbalancing residual emissions; the creation of institutionalised demand for high-quality removal methods would also lay the foundation for achieving net-negative emissions.

Keywords: EU mitigation target for 2040; carbon dioxide removal technologies; greenhouse gas neutrality; climate policy; Net-zero emissions; Carbon Management; CCS; CCU; CDR; UNFCCC (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-eec
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/320461/1/192886435X.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:swpcom:320461

DOI: 10.18449/2025C28

Access Statistics for this paper

More papers in SWP Comments from Stiftung Wissenschaft und Politik (SWP), German Institute for International and Security Affairs
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().