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EU agrees on major emissions reduction target in climate law revision
(MENAFN) The European Council and the European Parliament have reached a provisional agreement to revise the European Climate Law, establishing a binding goal to cut net greenhouse gas emissions by 90% by 2040 compared to 1990 levels, according to official reports.
The updated law introduces new flexibilities designed to help member states and industries manage the transition while strengthening the post-2030 climate framework. It aims to balance competitiveness, social fairness, energy security, and long-term investment conditions.
Negotiators also agreed to delay the rollout of the EU Emissions Trading System for buildings and road transport (ETS2) from 2027 to 2028. The deal outlines that reductions must primarily be achieved domestically, though the use of high-quality international carbon credits and permanent domestic removals under the EU ETS is permitted to provide some flexibility across sectors.
The agreement emphasizes strengthening the enabling framework to support innovation, simplify processes, ensure energy affordability, and maintain natural carbon sinks. It also reinforces a review mechanism, mandating regular assessments of competitiveness, energy prices, and net removals, with the European Commission required to propose additional measures if targets are not being met.
From 2036, member states will be allowed to use international carbon credits for up to 5% of 1990 EU net emissions, ensuring that at least 85% of reductions by 2040 occur within the EU. A pilot phase between 2031 and 2035 may help develop a high-integrity global carbon credit market. Future reviews will determine whether additional credit use should be permitted for post-2030 national targets.
The agreement remains provisional and must be formally approved by both the European Parliament and the European Council before adoption. The original European Climate Law, passed in 2021, established the EU’s binding objectives of climate neutrality by 2050 and a minimum 55% net emissions reduction by 2030.
The updated law introduces new flexibilities designed to help member states and industries manage the transition while strengthening the post-2030 climate framework. It aims to balance competitiveness, social fairness, energy security, and long-term investment conditions.
Negotiators also agreed to delay the rollout of the EU Emissions Trading System for buildings and road transport (ETS2) from 2027 to 2028. The deal outlines that reductions must primarily be achieved domestically, though the use of high-quality international carbon credits and permanent domestic removals under the EU ETS is permitted to provide some flexibility across sectors.
The agreement emphasizes strengthening the enabling framework to support innovation, simplify processes, ensure energy affordability, and maintain natural carbon sinks. It also reinforces a review mechanism, mandating regular assessments of competitiveness, energy prices, and net removals, with the European Commission required to propose additional measures if targets are not being met.
From 2036, member states will be allowed to use international carbon credits for up to 5% of 1990 EU net emissions, ensuring that at least 85% of reductions by 2040 occur within the EU. A pilot phase between 2031 and 2035 may help develop a high-integrity global carbon credit market. Future reviews will determine whether additional credit use should be permitted for post-2030 national targets.
The agreement remains provisional and must be formally approved by both the European Parliament and the European Council before adoption. The original European Climate Law, passed in 2021, established the EU’s binding objectives of climate neutrality by 2050 and a minimum 55% net emissions reduction by 2030.
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