The European Commission has proposed a legally-binding target to cut net greenhouse gas emissions by 90% by 2040, from 1990 levels. This is the first time the EU will allow countries to use carbon credits from developing nations to meet a limited share of their emissions goal. The proposal also includes flexibilities that would soften the 90% emissions target for European industries.
The EU aims to keep its core climate aim of reaching net zero emissions by 2050, and this target is part of that plan. However, some governments have opposed the proposal, citing concerns over competitiveness and support for industries. Poland’s government has said the target is “completely unrealistic,” while Finland’s government supports it.
The EU faces a mid-September deadline to submit a new 2035 climate target to the U.N., which will be derived from the 2040 goal. The Commission says this target creates investment certainty for industries and makes sense economically, socially, and geopolitically.
Europe is the world’s fastest-warming continent, with climate change causing severe heatwaves, wildfires, and disruption across the continent. The EU’s ambitious policies to combat temperature rise have stoked tensions within the bloc. The Commission proposal aims to boost ambition globally by offering countries more flexibility on which sectors contribute to the 2040 goal.
Carbon credits generated by projects abroad will be phased in from 2036 and can cover up to 3 percentage points of the target for European industries. However, some critics argue that buying foreign carbon credits would divert investments from local industries.
Source: https://www.reuters.com/sustainability/cop/eu-add-international-co2-credits-next-climate-goal-2025-07-02