[Carbon Market Trends Brief] EU Considers Use of International Credits in 2040 Climate Target > 게시글

 

Carbon Market Trends Brief (July 1st Week, 2025)

- EU considers introducing international carbon credits
- Global coalition formed to strengthen credit integrity
- Rising litigation over corporate offsetting claims
 

Between late June and early July 2025, the voluntary carbon market has seen a series of concurrent developments : increased attention to regulatory alignment, growing emphasis on environmental integrity, and expanding legal scrutiny over corporate use of carbon credits.
 

The EU’s consideration of international credit use, the launch of VCMI’s shared principles for responsible credit use, and the global uptick in legal action related to offsetting claims all reflect a clear transition. The market is shifting from a reduction-centric approach toward a rules-based, accountability-driven international mechanism.

 

 

EU Considers Use of International Credits in 2040 Climate Target
The European Union is currently reviewing a proposal to meet up to 3% of its 2040 national emissions reduction target using internationally transferred mitigation outcomes (ITMOs). These credits would be phased in starting in 2036 and limited to high-quality mitigation/removal units that meet UN standards.

The proposal aims to ease the domestic cost burden on heavy industries, and has received support from member states such as Italy and Poland. However, some developing countries, including Brazil, have expressed concern over the potential over-reliance on foreign credits to meet domestic climate goals.

 

 

Global Coalition Launches Shared Principles for High-Integrity Credit Use
A newly launched public-private coalition—including the governments of the UK, Kenya, and Singapore—has issued Shared Principles for High-Integrity Carbon Credit Use.

 

This initiative aims to restore trust in the voluntary carbon market and promote responsible use of high-quality credits. The principles serve as a baseline for responsible credit use by both public and private actors and are expected to guide the evolving governance of voluntary markets ahead of COP30.

 

 

Legal Action Rises Against Corporate Offset Claims
According to a recent report by the London School of Economics (LSE), corporate climate and offsetting claims are facing growing legal scrutiny across jurisdictions.

In countries such as Australia, Germany, the U.S., Kenya, and Brazil, courts have increasingly ruled that companies’ carbon neutrality or offsetting statements constitute misleading advertising or consumer deception. In several cases, this has led to formal liability or financial penalties.

This trend suggests that legal risk stems not only from credit quality, but also from how claims are communicated to the public, reinforcing the importance of accuracy and transparency.
 

 

 

Key Implications

• Increased demand for high-integrity credits amid growing international linkages
 → The EU’s potential use of international credits highlights the growing relevance of CCP-aligned units in regulatory frameworks. Securing and managing high-quality credits will become increasingly critical.

 

• Stronger international alignment on credit use guidance
 → VCMI’s Shared Principles signal a step toward the formalization of voluntary markets, setting minimum expectations for responsible credit use by companies.

 

• Rising legal liability for offset-related communications
 → Legal and reputational risks now extend beyond credit quality to include how claims are framed. Companies must adopt robust MRV systems and ensure transparency in offset-related communications.
The carbon market is steadily evolving toward enhanced efforts at the corporate, national, and international levels to address persistent integrity concerns. While addressing the integrity of carbon credits remains a priority, efforts must also be increasingly refined to ensure that international credits do not devolve into a mere instrument for offsetting.

 

 

Related Articles and Reference Materials :

1) EU plans to add carbon credits to new climate goal, document shows

2) First-of-its-kind government coalition to issue shared principles on carbon credit use by COP30 to boost climate finance

3-1) Rise in legal challenges over carbon credit schemes

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