The EU should set up a centralised system for buying Article 6 international carbon credits to manage delivery risks and prevent the bloc from weakening its own climate policy, according to a report released Monday.
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Carbon Pulse
EU should centralise buying of Article 6 credits, report says
Abatify Summary
Nature & Climate Perspective
**Centralizing Article 6 credit purchasing at the EU level would establish a high-integrity gateway, directly shielding global ecological projects from speculative, low-quality carbon finance. **
- By vetting projects centrally, the EU can prioritize Article 6.2 and 6.4 activities that deliver verified, permanent carbon sequestration and biodiversity co-benefits over low-quality LULUCF projects.
- Aligning centralized procurement with ICVCM Core Carbon Principles (CCPs) ensures strict additionality, preventing ecological displacement and ensuring real-world mitigation in host countries.
- Centralized oversight safeguards vulnerable ecosystems in developing nations by setting high social and environmental safeguard baselines, preventing aggressive land-use conversion for speculative credits.
Market & Policy Outlook
**A centralized EU purchasing vehicle for Article 6 credits would radically consolidate market power, reducing transaction and delivery risks of ITMOs while protecting the integrity of domestic EU climate targets. **
- The mechanism directly manages systemic double-counting risks by enforcing mandatory corresponding adjustments under Article 6.2, preventing the dilution of EU ETS ambition.
- By aggregating buying power, the EU would establish a robust price floor for high-integrity ITMOs, stabilizing market pricing and injecting liquidity into highly verified international projects.
- This sovereign-level consolidation provides a clear regulatory compliance pathway, helping private entities align their Scope 3 strategy with stringent SBTi and ICVCM rules.
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