Brussels opens door to limited use of Article 6 credits under CBAM

The European Commission has released draft CBAM rules that would allow importers to use Article 6 carbon credits to reduce CBAM liabilities, provided the credits meet Paris Agreement standards and do not exceed 10% of emissions from the production facility. The proposal, open for public consultation until June 10, introduces detailed methodologies for recognizing third-country carbon pricing systems, including emissions trading systems and carbon taxes. Only Article 6.2 and 6.4 credits registered as internationally transferred mitigation outcomes (ITMOs) would qualify. The draft reflects a shift from the European Parliament’s earlier opposition to international credits under CBAM and could significantly influence global carbon pricing, Article 6 markets, and demand for high-integrity carbon credits.
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