
It says EU nations should be allowed to trade away 50% of their emissions reductions - up from the 30% currently allowed by the European Commission.
The money would go towards clean energy projects in developing countries.
But because some of these schemes would have gone ahead anyway, CO2 is not always saved, warn environment groups.
European nations are currently expected to make around 70% of their carbon reductions on home turf, leaving 30% available for trade.
Reducing that domestic obligation to 50% could allow an extra billion tonnes of CO2 into the atmosphere, according to WWF.
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