International carbon credits in the EU 2040 target: A blueprint for environmental integrity

Summary

This report sets out the case for integrating carbon ratings into the EU’s approach to international credit procurement, drawing on evidence and case studies from today’s carbon market landscape. This includes demonstrating the long history of the use of ratings within regulated financial markets, whereby they play a central role in the functioning of the market. It then explores how carbon ratings could be deployed in practice as an instrument which strengthens the EU’s ability to manage risk, maintain credibility, and scale a high-integrity credit procurement strategy over time.