🇪🇺 Europe will procure huge amounts of international credits - but what credits exactly?

🎯 A final agreement has been reached: 5% international credits (1990 levels) plus a potential additional 5% (2005 levels) at member state level.

📈 Starting as early as 2031, we are talking 100s of megatons, potentially more than a gigaton worth of credits (we are still thin on details).

📋 But what credits exactly? So far, all we have is reference to “high-quality” and a reference to the Paris Agreement. It will be up to the EU Commission to prepare an impact assessment and make specific recommendations.

Having said that, there are really only three options on the table:

1️⃣ The EU’s own CRCF criteria (an adaptation thereof)

2️⃣ The UNFCCC’s Article 6.4 criteria aka the Paris Agreement Crediting Mechanism

3️⃣ Criteria from the voluntary carbon market (VCM)

🤝 It seems like the EU is leaning towards #2 or PACM. This would have huge implications on quality, cost, and the development of PACM itself, giving it a massive use case.

🎙️ To make sense of all of this, we invited the MVP of carbon market methodologies to the CDR Policy Scoop: Lambert Schneider from the Oeko-Institut.

🤓 Few understand the differences between these three options better than Lambert. This was definitely one of my all time favourite conversations, and it couldn’t be more timely.

👉 Tune in to learn why he doesn’t think the CRCF is good enough, why 6.4 might be quite expensive, and how 6.2 and 6.4 interlink (among many other things):

🎧 Podcast: https://lnkd.in/dm6Gnjgn

🟥Youtube: https://lnkd.in/dbhUkn4K

❓ What is your take? What type of international credits should the EU procure?

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