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Sources say that the EU is considering international CO2 credits to meet its new climate goal.

Sources familiar with the issue said that the European Commission was considering counting international credits as part of its climate targets. This could weaken efforts to reduce CO2 from the domestic industry, which is what the Commission demands.

Wopke Hekstra, EU Climate Commissioner, is currently discussing the idea with member states and legislators of the EU, many of whom are opposed to the EU 2040 climate goal to reduce emissions by 90%.

Climate change is competing with other political issues, including defense, for the attention of the Commission, which missed the deadline to announce the goal. Some governments and legislators also claim that EU green rules hurt domestic industries, which are already reeling from U.S. Tariffs and cheap imports.

Five sources with knowledge of the discussion said that the Commission is evaluating options, including setting an emissions reduction target for 2040 domestic industries lower than 90% and letting the countries buy international credits to cover the remainder.

This would allow EU countries to buy credits for projects abroad that reduce CO2 emission - such as forest restoration in Brazil, and then count these reductions toward the EU goal.

Politico has previously reported on the options that the Commission is exploring.

A spokesperson for the Commission declined to comment on whether or not it was considering adding international credits of carbon to the EU targets.

This would be a U-turn for the EU whose other climate goals are only met through domestic efforts.

Hoekstra stated last week that the Commission still considers a 90% reduction in emissions as the "starting point" for discussions on the 2040 target, which he plans to present before the summer.

Hoekstra said to reporters, "We're sensitive to requests that we show a little pragmatism." He refused to say whether he had explored flexibility for the target.

The EU and European Parliament must approve the 2040 climate target.

CREDIBILITY CONCERNS

Proponents of the U.N. global market for carbon credits see it as a means to fund CO2-cutting initiatives in developing countries.

Despite this, there have been multiple CO2 credit scandals where projects that generated credits were not able to deliver the benefits claimed for climate change.

Linda Kalcher of Strategic Perspectives think tank, the executive director, has warned against this risk.

Kalcher stated that "the list of scandals related to international credit is long, including fraud, lack environmental integrity and a drastic collapse in the price of (EU) CO2."

In 2013, the EU banned cheap international credits from its market for carbon. This was after a flood contributed to a fall in EU's carbon prices.

In order to alleviate such concerns, countries are launching a U.N. supported carbon market. This will include stricter safeguards to ensure that credits deliver the benefits claimed for climate change.

Some suggested that the EU could use the initiative to strengthen its hand in international climate talks with developing countries, whose projects that generate CO2 credits could receive EU assistance.

Andrei Marcu is the executive director of ERCST, a think-tank. (Reporting and editing by Kate Abnett, Philip Blenkinsop)

(source: Reuters)