IETA comment on EU2040 target

IETA welcomes the Commission’s proposal for a 90% climate target for 2040 and the inclusion of international credits in the EU policy framework.

This marks a new era of market-based cooperation under Article 6, enabling emissions reductions and removals where they are most cost-effective. We urge Member States and the European Parliament to endorse a role for Article 6 credits in the 2040 climate package.

We applaud the proposal to recognise permanent carbon removals under the EU ETS, as this can help boost market liquidity and reduce price volatility.

As a next step, IETA supports opening the EU ETS to Paris Agreement Crediting Mechanism [also known as Article 6] removal credits. However, maintaining market stability and the effective functioning of the EU ETS must remain a priority.