Britain is reportedly attempting to weaken European plans to make businesses and governments reduce their carbon emissions by 2020.
The Guardian claims leaked documents show the UK favouring investments in clean projects in the developing world as part of a carbon offsetting programme in preference to actual reductions in emissions.
According to these calculations, European organisations would be able to emit an extra billion tonnes of carbon dioxide between 2013 and 2020.
Caroline Lucas, MEP and leader of the Green party, said: "The British government is trying to buy its way out of climate change targets using unreliable credits from abroad."
She added this shows much discussion on improving
air quality to halt climate change as empty rhetoric.
The Department for Food, Environment and Rural Affairs notes that the EU Emissions Trading Scheme (ETS), in place since January 2005, is the first of its kind.
EU ETS operates by putting a price on carbon used by firms and creating a market.