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International credits won’t play role in EU ETS, leaked draft on 2040 targets says

By Eleonora Rinaldi ( July 31, 2025, 15:43 GMT | Insight) -- International credits “shall not play a role for compliance in the EU Emissions Trading System”, EU ministers have said in their latest draft, seen by MLex, amending the European Commission’s 2040 target proposal. Instead, the ETS should incorporate domestic carbon removals to offset residual emissions from hard-to-abate sectors. Ministers also underscored the importance of both public and private financial support for implementing existing 2030 climate policies, and reaffirmed a technology-neutral approach that embraces all low-carbon solutions.EU ministers are currently negotiating a compromise agreement on the European Commission’s proposal to reduce net greenhouse-gas emissions by 90 percent by 2040 (see here)....

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