Why Leading EU Companies Are Choosing European Carbon Credits

As Europe accelerates toward climate neutrality, companies face a critical question: where should they source their carbon credits? With regulatory scrutiny rising and integrity under the spotlight, European-based credits are emerging as the gold standard—not just for compliance, but for credibility

1. Jurisdictional Risk
   European-based projects have a significantly lower jurisdictional risk

2. Compliance and Regulation
   ‍Familiarity with purchasing carbon credits with the potential of being CRCF compliant and being integrated with the EU ETS.

3. Double Counting
   ‍Matching footprint with emissions avoids double counting concern

4. Local Impact
   Providing climate finance close to home increases a positive relationship with direct stakeholders

5. Project options
   ‍Take a closer look at Anew's current projects, which are ready for you to get involved with. 

Now, let's get into more detail on each of these topics.

Jurisdictional Risk

When we try to establish what a high-quality carbon project is, two of the main topics included are (a) the baseline setting and (b) the additionality component. Setting the baseline is establishing the status of the project environment in the absence of a project. For example, in the absence of an Improved Forest Management (IFM) project, forest companies would continue harvesting under business-as-usual practices. Alternatively, if an IFM project is implemented, the reduction in harvesting beyond what is permissible by law enables forests to generate carbon credits. This takes us to our second point, additionality, that an IFM carbon credit is only additional if it goes beyond what is permissible by law.

In many regions, weak environmental laws make it hard to guarantee the integrity of carbon credits. That's not the case in Europe, where legal enforcement is strong and transparent.

These legal gaps have been at the root of several high-profile carbon scandals in recent years, often involving projects that appeared credible on paper but lacked true enforceability in practice. 

Fortunately, if a carbon project is operating under European Law and European Courts, the legal additionality component is robust, and the law would be enforced strongly if a project fails to comply properly. The same is true for countries such as the United States and Canada.

Therefore, purchasing European-based carbon credits significantly reduces the risk of legal exposure.

Compliance and Regulation

There are several policy regulations in progress that will affect which carbon credits can be generated, utilized, and claimed.

In terms of the supply of quality carbon credits, the European Union has recently adopted the Carbon Removal and Carbon Farming Regulation (EU CRCF) that will establish a standard of quality criteria for European-based carbon credits, which will be accompanied by the "stamp of approval" by the European Union. This provides an opportunity for buyers of voluntary carbon credits to leverage the EU CRCF certification as a mark of quality in their climate strategies, avoiding reputational risk. 

Which carbon credits will be accepted? The EU is still defining which methodologies it will accept. However, so far, it has been confirmed that all EU CRCF-aligned credits will be European-based. In the meantime, purchasing European credits ensures the buyer is as closely aligned to the EU CRCF standard as possible, and until it is finalized, buyers can focus their purchases on high quality registries such as Verra and Gold Standard. 

Europe has several ongoing discussions about potential compliance markets for European carbon credits, such as creating a Land Based Emissions Trading System (ETS), an Agriculture-based ETS, and/or integrating Carbon Dioxide Removals (CDRs) into the EU ETS as a flexibility mechanism. So far, the most advanced is the latter: the EU ETS, as a final decision on whether this will proceed will be made in 2026. The purpose of the EU ETS is to establish a supply of most likely European-based carbon removals that provides a flexibility mechanism on a small percentage of EU ETS allowances. The objective is two-fold. First, regulated entities will only purchase European-based CDRs if the unit price of the credit is less than the EU ETS unit price, thus lowering the cost for a Buyer to decarbonize. Second, by purchasing European-based carbon credits, the buyer helps Europe in meeting its ambitious climate target; reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels, then by 90% by 2040, and ultimately becoming climate-neutral by 2050. Europe is already facing many climate issues, like black beetle infestation in some forests, intense fertilizer deposition into the Baltic Sea, reduction of Europe's overall nature-based removal potential (from 322 MtCO₂e/yr in 2013 to 249 MtCO₂e/yr in 2019), droughts, etc. Europe needs climate mitigation and adaptation.

Double Counting

Double counting has become a significant topic of discussion recently. Double counting is the concept that one carbon credit is being accounted for twice, for the same use. For example, two different companies using the same carbon credit to offset each of their emissions results in one carbon credit being used for two purposes. 

Things get a bit more complicated when you bring in the Paris Agreement, National Determined Contributions (NDCs), and Corresponding Adjustments (CAs). Under the Paris Agreement, every state – or group of states in the case of EU-27 – presents its NDC, which is the national/supra-national GHG inventory and its climate target for 2030 (or beyond). 

Concerns of double counting are introduced when one sees a company emitting in country X and using carbon credits sourced from country Y, resulting in the emissions and generated carbon credits not matching within the same NDC. In this case, CAs are required, whereby the buying country must request the selling country to remove the necessary quantity of carbon credits from their GHG inventory and send it over to the NDC of the buying country. The entity that is making the purchase must then pay the selling country for the CA.  

But what happens when you buy carbon credits from the same jurisdiction in which you are emitting GHGs? Here, you would never need CAs. This is because both your emissions and carbon credit use are nested within the same GHG inventory, which is the case for the European Union.

In conclusion, unless you can secure CAs, the easiest way to avoid double counting concerns and additional costs is to match your footprint with your carbon credit use. If a company has European-based emissions, it's best practice for that company to purchase European carbon credits. This holds true for other jurisdictions as well. If you have US or Canadian emissions, it's best practice to use US or Canada based credits. In this case, both your company's inventory and your jurisdiction's state inventory would account for the carbon credits. However, each account for the carbon credits serves a different purpose. The former is at a private company level, and the latter is at a state level. 

Local Impact

According to the European Commission, in 2024, Europe was the fastest-warming continent, with a clear climate divide – eastern parts suffered from extreme heat and drought, while western parts were extremely hot and humid. At the same time, it experienced the most widespread flooding since 2013 ¹- 2013 ²’

Europe is already facing many climate issues, such as black beetle infestation in some forests, intense fertilizer deposition into the Baltic Sea, and a reduction in Europe's overall nature-based removal potential (from 322 MtCO2e in 2013 to 249 in 2019), as well as droughts. Europe needs climate mitigation and adaptation.

Ready to explore high-quality EU carbon credits?

At Anew, we are actively building a pipeline of European-based, nature-aligned carbon credit opportunities, focusing on projects that meet the highest standards of credibility, scalability, and regulatory alignment within the EU.

To begin, we are offering access to two strong opportunities that exemplify the benefits discussed above: local impact, lower jurisdictional risk, and alignment with evolving EU policies.

Bulgarian Sustainable Farming Carbon Project

In the heart of Bulgaria, farmers are transforming their agricultural practices to reduce intensive farming and focus on more sustainable methods of work to promote regenerative agriculture, thereby mitigating climate change and improving soil health. 

• Project ID: VCS 4751
• Location: Vidin and Pleven provinces, Bulgaria
• Type: Regenerative Agriculture (Improved Agricultural Land Management)
• Methodology: VCS VM0042
• Scale: 8,982 hectares under implementation, with expansion potential to 500,000 hectares
• Status: Listed under the Verra Registry, validation should happen in Q4 2025 | Verified by One Carbon World Ltd
• Co-benefits:
  
  • Enhances soil health and biodiversity
  • Reduces greenhouse gas emissions from conventional agriculture
  • Supports SDGs 2 (Zero Hunger), 8 (Decent Work & Economic Growth), 13 (Climate Action), and 14 (Life Below Water)‍

The Forestry Silvador Climate Action Project in Romania

Romania's ancient forests are among Europe's last biodiversity strongholds. This project protects them while creating green jobs and long-term carbon storage.

• Project ID: VCS 4511
• Location: Târgoviște, Romania 
• Type: Improved Forest Management (IFM), Logged to Protected Forest (LtPF)
• Methodology: VCS VM0012
• Scale: 1,538 hectares of privately owned forestland across different Romanian counties, managed by Silvador Company SRL and Forest Capital SRL
• Status: First volumes are issued and ready to transact | Verified by EPIC Sustainability Services Private Limited
• Co-benefits:
  
  • By halting timber harvesting and implementing forest maintenance, ecological enhancement, and risk mitigation activities, the project enhances carbon storage and forest resilience.
  • Increases carbon retention in the forest biomass, protects biodiversity-rich habitats, and strengthens ecosystem services such as water regulation and soil stabilization. 
  • Supports SDGs 12 (Responsible Consumption and Production), 13 (Climate Action), and 15 (Life on Land)

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These projects are a strong example of how companies can support local European climate impact while purchasing credits that are verified by a globally recognized standard body, aligned with future CRCF expectations, and designed to scale with long-term integrity.

More EU-based projects will be added to our portfolio soon to serve clients seeking robust, local solutions as part of their decarbonization efforts, so please don't hesitate to reach out to our representatives to explore ways to include them in your company's strategy. 

Strategic and Forward-Looking

These projects are more than carbon credits; they're investments in Europe's ecological resilience, rural economies, and climate leadership. By supporting local initiatives, your company's climate action becomes not only measurable but meaningful. 

As the European carbon market evolves, companies that act early will be best positioned to lead, not just in compliance, but in credibility. By integrating EU-based credits into your climate strategy, you align with emerging regulatory frameworks, reduce reputational risk, and contribute to tangible local impact. 

Anew's portfolio is built for this moment: rooted in nature, verified by leading registries, and designed to scale with integrity. Whether you're refining your net-zero roadmap or seeking high-quality credits to complement existing commitments, our team is ready to support your journey. 

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