EU's Climate Plan to Fund Emission Cuts Abroad Lacks Proper Impact Assessment

The European Commission has acknowledged that it never conducted a formal impact assessment on its controversial plan to fund climate action in non-EU countries, raising concerns among lawmakers and environmental experts.

The proposed initiative aims to allow EU countries to finance carbon-cutting projects abroad, with those emissions savings counting toward their own climate goals under the EU's Effort Sharing Regulation (ESR). This regulation governs emissions from sectors like transport, buildings, and agriculture.

While intended to help poorer nations combat climate change, critics argue that the plan could undermine the EU’s domestic emission reduction goals and weaken global climate leadership.

No Clear Data on Effectiveness

Officials from the Commission admitted that they did not study the plan’s climate impact, potential costs, or legal implications before presenting it. During recent discussions with the European Parliament, the Commission confirmed that no environmental or cost-benefit analyses had been conducted.

Pushback from Lawmakers

EU lawmakers have expressed concern that the plan may shift climate responsibilities away from wealthier nations without proper oversight or transparency. Some members called it a form of “climate outsourcing” that lacks accountability and clarity.

Despite the criticism, the Commission still plans to submit the proposal as part of the EU’s broader 2040 climate strategy by early 2026. However, Parliament and climate advocacy groups are pushing for a more robust examination before any formal adoption.

Source: EU wants to pay poor countries to cut emissions. It never studied the plan’s impacts. – POLITICO 

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