Brussels prepares law that shifts EU climate efforts to poorer countries

The draft amendment to the European Climate Change Act sets a target of reducing emissions by 90 % by 2040 compared to 1990 levels, while allowing countries to meet part of the target by sponsoring climate projects outside the EU, usually in poorer countries. The Commission will publish the final proposal on 2 July, Politico reported.

The proposal follows an agreement by the German government coalition, which proposed to limit the use of carbon credits to three percentage points of the overall target. An anonymous person familiar with the proposal, still under discussion, described the details of the proposal to Politico.

Carbon credits would allow the EU, Member States or companies to pay for emissions reductions abroad and count them towards their targets. Current EU targets require domestic action, and critics warn that credits would slow decarbonisation in the EU. Yet the idea is gaining support.

A French official said Climate Commissioner Wopke Hoekstra had proposed a cap of three percent, which France considers low. "It could be more," said the anonymous source. Two other EU officials confirmed that the Commission was considering a three per cent cap, but it is not confirmed. Dutch daily De Volkskrant reported a similar figure.

Hoekstra lobbied for the credits with the German coalition partners, but the 3 % limit was proposed by Germany. The EU's Scientific Council warns that credits threaten the integrity of the targets, and Commission Vice-President Teresa Ribera is sceptical. France, however, sees the credits as a relief for industry.

France is open to funding natural solutions and projects such as replacing coal-fired power plants with renewable sources. Germany prefers "permanent" emission reductions and rejects temporary projects such as tree planting.

French Minister Agnès Pannier-Runacher said the credits can offset the decline in carbon uptake by European forests due to water stress and pests. Finnish minister Sari Multala agrees that the credits can offset the loss of carbon sinks because Finnish forests have become a source of CO₂.

Finland is the tenth EU country to support international credits, increasing pressure on the Commission to agree on a 2040 target. "Credits should be a last resort, but we may have to accept them," Multala said.

Politico/gnews.cz - GH