Lessons learnt from EU’s carbon offset rules

This week, the European Commission released new data on the number and origin of carbon offsets used in 2014 by companies in the EU’s carbon market. Despite new eligibility criteria to incentivize investments in poor countries, the majority of offsets come from China, Ukraine and Russia. Moreover, lack of transparency gives a carte blanche to companies to choose projects with negative environmental and social impacts. As policies for large scale mitigation investments are currently being designed, these findings can provide valuable lessons.

Higher EU climate target needed when linking carbon markets

As the EU and Switzerland are about to conclude the technical negotiations to link the EU and Swiss carbon markets in the coming months, a new policy brief and report by Carbon Market Watch show that the EU must increase its climate target to avoid diluting domestic emission reduction obligations with foreign allowances from the Swiss carbon market.

Media Statement: EU policymakers agree on carbon market fix

6 May 2015, Brussels. European policymakers provisionally agreed to start implementing the reform of the EU’s Emissions Trading System on 1 January 2019 and put the pollution permits that were due to come back to the market by 2020 directly into the new Market Stability Reserve. Carbon Market Watch welcomes this first step to fix the EU’s carbon market but cautions that the upcoming revision of the EU ETS will need to permanently tackle the glut of pollution permits.