The European Commission has released draft rules allowing importers to use certain international carbon credits to lower obligations under the EU’s Carbon Border Adjustment Mechanism (CBAM). The proposal permits credits issued under Article 6 of the Paris Agreement but limits their use to 10% of embedded emissions linked to imported goods.
The draft regulation also confirms that carbon costs already paid through foreign emissions trading systems or carbon taxes can be fully deducted from CBAM liabilities. EU officials said the cap is aimed at preventing excessive reliance on low-quality offsets while preserving environmental integrity as CBAM enters its full operational phase in 2026.