International Credits In The EU ETS: How The 2026 Review Bets On Flexibility And What It Means For CDR At Home And Abroad

The European Commission’s 2026 EU ETS review proposes central procurement of 250 million tonnes of permanent EU carbon removals between 2031 and 2040, funded by auctioning additional allowances. It also anticipates purchasing up to 260 million high-integrity international credits during 2036–2040, supporting an 85% domestic reduction while meeting the EU’s 90% net reduction target. These credits would be purchased centrally rather than surrendered directly by regulated companies. Domestic eligibility initially focuses on DACCS and BioCCS, while requirements for international credits, including whether a comparable like-for-like principle will apply, remain unresolved. A 2033 report will assess international credit availability, integrity and cost-effectiveness; if conditions are not met, no credits will be purchased and the ETS cap will tighten accordingly. Carbon Gap warns that international credits may not be cheaper than domestic abatement and recommends equivalent safeguards if domestic removal procurement underdelivers.
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