Open letter against international credits integration into the EU 2040 climate target and NDC

Jun 12, 2025 | Carbon Pricing

Sandbag has co-signed a joint open letter initiated by CAN Europe and Carbon Market Watch, alongside a broad coalition of NGOs, think tanks, and climate experts. The letter urges EU policymakers to reject proposals that would allow the use of international carbon credits — governed under Article 6 of the Paris Agreement — in meeting the EU’s 2040 climate target and Nationally Determined Contribution (NDC). 

 

The signatories warn that shifting from domestic action to external offsets risks weakening EU climate ambition, undermining international credibility, and delaying essential structural change. The letter calls for a fully domestic, science-aligned target of at least 90% net emissions reductions by 2040. 

Download the open letter

About the open letter

The letter responds to growing political signals that international credits could be introduced into the EU’s 2040 climate framework. This would mark a major departure from the current EU Climate Law, which mandates that targets be met primarily through domestic action.

Key Findings

  • Undermines EU climate credibility The inclusion of international credits would weaken the ambition of the EU’s domestic climate targets, risking the erosion of its hard-won leadership on climate action.
  • Environmental and human rights risks Article 6 credits have been linked to weak safeguards and real-world abuses. Early deals under this framework show troubling signs of poor quality and unverifiable emissions savings. 
  • Fails to deliver real emission reductions Offsets only shift emissions elsewhere and delay structural decarbonisation at home. A systemic review found that just 16% of credits reflected actual emissions cuts. 
  • Not a form of climate finance Buying credits does not constitute a climate finance contribution. It is a financial transaction — not a substitute for real EU action. 
  • Increases long-term costs and uncertainty Relying on credits would mean recurrent costs and financial outflows, locking in polluting investments and stranding future assets. 

Related publications

https://sandbag.be/2025/07/09/simulating-cdr-in-the-eu-ets-the-risks-of-premature-integration/

July 9th 2025

https://sandbag.be/2024/12/17/carbon-dioxide-removals-eu-ets/

Aug 11th 2025

https://sandbag.be/2024/07/16/feedback-on-permanent-ccu-in-the-eu-ets/

July 16th 2024

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