EU Governments Recognize the Importance of Carbon Markets
While Europe’s private sector has long driven the growth of voluntary carbon markets (VCMs), governments had until recently remained cautious. This is now changing.
The French GOUVERNEMENT has launched the Charter for Paris-Aligned and High-Integrity Use of Carbon Credits, which sets two benchmarks for high-integrity credits:
- The Paris Agreement Crediting Mechanism (PACM), under Article 6.4 of the Paris Agreement.
- Voluntary carbon market credits labeled with the Core Carbon Principles (CCP).
By launching the Charter, France acknowledges the positive role carbon markets can play in reducing and removing global greenhouse gas emissions. It supports using carbon markets for nature-based solutions that protect biodiversity—despite the EU’s historical preference for durable removals.
Seventeen companies have voluntarily signed the Charter. They commit to setting net-zero targets, reporting annual gross emissions, and using high-integrity carbon credits to offset residual emissions while progressing toward net-zero goals. The Charter gives companies a clear directive to demonstrate climate leadership and align carbon credit strategies with evolving European policy.
So considers the European Commission the limited use of international carbon credits to help meet its 2040 target of a 90% emissions reduction. Germany is also exploring allowing up to 3% of its 2040 target to be met with credits from outside the EU.
The REDD+ Business Initiative welcomes these developments—as long as carbon credits are treated as a meaningful yet limited tool in climate action, not a shortcut.
