Three major European Parliament groups S&D, Renew, and the Greens have issued a joint warning against allowing international carbon credits for compliance in EU ETS sectors. They argue that using offsets from outside the EU could undermine the integrity of the bloc's carbon market and slow domestic decarbonization efforts. The groups want the ETS to remain a tool for reducing emissions within Europe, not a mechanism to buy credits from other regions. This position sets up a key debate as the EU prepares its post-2030 ETS reform. Critics of international credits say they create accounting loopholes and delay real emission cuts in European industry. Supporters argue they lower compliance costs and channel finance to developing countries. The outcome will shape how much companies can rely on offsets versus direct emission reductions.
