Carbon Markets and Climate Targets: Aligning Domestic and International Approaches

Session as part of the EUI Climate Week 2026

Several jurisdictions like the European Union have decided to use international carbon credits as a complement to domestic mitigation efforts. Questions arise about their implications for cost-effectiveness, environmental integrity, climate justice and equity, and incentives for domestic emissions reductions. The policy dialogue is part of the EU-funded project LIFE NETS – Net-Zero Emissions Trading Schemes – which runs from 2026-2028.

This session as part of EUI Climate Week aims to address the question of how countries have combined domestic climate targets with the use of international carbon credits, and what regulatory and governance safeguards may be needed to ensure that such credits reinforce rather than weaken domestic climate action.

The event is organised by the Climate area at the Florence School of Regulation, in collaboration with the Florence School of Transnational Governance and the Policy Outreach Committee of EAERE (the European Association of Environmental and Resource Economists).

Opening remarks: Simone Borghesi, Florence School of Regulation, EUI

Presentation of Background Report: Marie Raude, Florence School of Regulation, EUI

Panelists:

• Toshi Arimura, Waseda University
• Carolyn Fischer, World Bank
• Dirk Forrister, IETA
• Injy Johnstone, Oxford Net Zero
• Sebastien Paquot, European Commission

Conclusion: Simone Borghesi, Florence School of Regulation, EUI

More information and the full programme of the EUI Climate Week 2026 can be found here.