European Union Approves New Climate Target to Cut Emissions by 90% by 2040

The European Union has given final approval to a new climate target aimed at reducing greenhouse gas emissions by 90% by 2040, reinforcing the bloc’s ambitious climate agenda despite political opposition from some member states.

The agreement is the result of a difficult political compromise between EU governments and lawmakers reached last year. It places the EU among the most ambitious major economies in terms of emissions reduction commitments, surpassing targets set by countries such as China.

Key Features of the Agreement

• The target requires an 85% reduction in emissions from European industries compared to 1990 levels through domestic efforts.
• To achieve the remaining reductions, the EU plans to finance emissions-cutting projects in developing countries through carbon credits, allowing those reductions to count toward Europe’s climate goal.
• The EU may also use international carbon credits for up to an additional 5% of the 2040 target in the future, which could further ease domestic reduction requirements.

Other Important Decisions

• The agreement delays the launch of a new EU carbon market by one year, pushing it to 2028. This move is intended to address concerns from countries that were sceptical about the climate plan.
• The 2040 emissions target is part of the EU’s broader strategy to achieve net-zero emissions by 2050, in line with its long-term climate commitments.

Expert Concerns

Climate advisers to the EU had recommended a full 90% domestic emissions reduction, meaning the final deal falls short of their recommendation because part of the reduction will rely on international carbon credits rather than internal cuts.

Source: DD