Increased European Union (EU) environmental regulations have prompted European firms to seek innovative solutions for meeting carbon obligations. One emerging response is investment in carbon farms and environmental plantations, primarily located in developing countries. Why do developing countries permit foreign firms to make these large-scale land acquisitions? We argue that EU official development assistance facilitates these environmental land transactions. Beyond the direct benefits of foreign direct investment, we demonstrate how EU aid creates incentives for developing countries to accommodate European firms' environmental offsetting needs. Using Land Matrix data on environmental-focused land transactions in Sub-Saharan Africa, we find that countries receiving higher levels of EU aid are significantly more likely to sell or lease land to European-associated firms. We complement our statistical analysis with a case study of the Kariba REDD+ project in Zimbabwe to examine the mechanisms linking aid and land deals. Our findings reveal how the EU's green transition creates new environmental risks for developing countries while highlighting how powerful international actors can leverage development assistance to shape environmental governance in the Global South.