Using international carbon credits towards the EU 2040 target

This working paper explores specific matters for the possible use of international carbon credits towards the EU’s 2040 climate target. This includes when international carbon credits would need to be generated, transferred and used in order to be used towards the target, which of the methods for applying corresponding adjustments the EU should choose for applying corresponding adjustments, and whether and how the EU could pursue a flexible approach towards using international carbon credits by deciding at a later stage whether international credits would be used towards achieving the EU ’s 2040 climate target or reported as climate finance contribution.