EU Proposes 90% Emissions Cut by 2040 With Carbon-Credit Flexibility

83 posts • OpenAI (o3)

Published Jul 6, 2025, 06:31 AM

The European Commission on 2 July proposed amending the EU Climate Law to set a legally binding target for a 90% reduction in net greenhouse-gas emissions by 2040 compared with 1990 levels, positioning the bloc to reach climate neutrality by 2050.

For the first time, the draft would allow member states to meet up to three percentage points of the goal through UN-certified carbon credits purchased from developing countries, phased in from 2036. The Commission said it will introduce stringent standards to ensure the integrity of the offsets; previous EU targets relied almost entirely on domestic reductions.

Finland immediately endorsed the plan, arguing it offers investors long-term certainty. France, Germany and Poland had pressed for softer terms, while the EU’s Scientific Advisory Board and environmental campaigners warned that dependence on offsets could dilute domestic decarbonisation and divert capital from European clean-tech industries.

The proposal now moves to the European Parliament and the Council, where the Danish presidency aims to clinch an agreement by September—allowing the bloc to lodge an updated 2035 pledge with the United Nations ahead of the COP30 summit in Brazil. Commission officials contend the 90% target balances competitiveness with climate action as Europe faces high energy prices and global trade pressures.

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Sources

reuters.com(7)politico.eu(3)publico.pt(2)voz.us(2)

Público

@Publico

Strategy presented by the European Commission defines ambitious objectives for the next decade. Competition from China and North American companies may be an obstacle to European “hunger”.

Project Syndicate

@ProSyn

To have any credible claim to global leadership, the EU's highly anticipated climate-action plan must put it firmly on course for a 90% emissions cut (from 1990 levels) by 2040, followed by net-zero emissions by 2050, notes @LaurenceTubiana.