EU agrees to cut emissions by 90% by 2040
European Union (EU) countries agreed on Wednesday to cut greenhouse gas emissions by at least 90% below 1990 levels by 2040. This includes 5% that can be achieved by purchasing so-called carbon credits for projects outside the EU.
Under these plans, investments in non-EU countries, such as removing climate-changing emissions from the atmosphere, can be converted into carbon credits and counted towards a Member State's domestic emission reductions.
The credit system will be in place from 2031 and fully operational by 2036, EU environment ministers agreed after lengthy negotiations.
According to the compromise reached, plans to include buildings and road transport in the EU Emissions Trading Scheme will be postponed by one year until 2028.
The 2040 climate target will be reviewed periodically. These concessions were made to end more than 15 hours of negotiations and break a deadlock, as several EU countries were reluctant to accept new emission reduction commitments due to economic problems and geopolitical developments.
„Yesterday we worked all day and night to reach an agreement. It wasn't easy," said Danish Climate Minister Lars Aagaard, who announced the agreement on Wednesday morning.
„We all agree that Europe needs to remain competitive while we reduce emissions. A new climate target will help us provide the necessary predictability and investment security for European businesses," said the Minister.
This decision required a double majority: at least 15 of the EU's 27 member states, representing at least 65% of the bloc's population.
Ahead of the vote, ministers from Slovakia, Hungary and Poland said they would vote against the compromise. Bulgaria and Belgium abstained. The law is expected to be finalised in negotiations with the European Parliament in the coming months.
EU officials said the breakthrough on the 2040 climate target paved the way for a separate emissions reduction commitment required under the 2015 Paris Agreement, which was also agreed on Wednesday morning.
EU countries agreed to a binding climate plan target to reduce emissions by 66.25–72.5% below 1990 levels by 2035.
The compromise was reached just days before the start of the United Nations (UN) climate change conference in Brazil (COP30).
„Arriving in Belém (where the COP30 will take place on 10–21 November – ELTA) empty-handed would surely damage the EU's credibility“, warned one of the bloc's diplomats on the eve of a meeting of EU environment ministers.
