The European Union (EU) has reached a major milestone in its climate policy by agreeing on a legally binding target to cut greenhouse gas emissions by 90% by 2040, compared to 1990 levels. The agreement was reached following negotiations between EU member states and the European Parliament and is designed to keep the bloc on track for its commitment to achieve net-zero emissions by 2050.
Under the agreed framework, European industries will be required to reduce their emissions by 85%, while the remaining portion will be addressed through the use of international carbon credits. These credits will allow the EU to finance emissions-reduction projects in developing countries to cover up to 5% of the overall target.
The deal is considered one of the most ambitious climate goals globally, exceeding the emissions-reduction pledges of most major economies. However, it represents a compromise, as it falls short of earlier proposals put forward by the European Commission and recommendations from the EU’s climate science advisers. The final target reflects concerns raised by several member states regarding the economic impact of rapid decarbonization.
Countries such as Poland, Slovakia, and Hungary expressed reservations about deeper emissions cuts, citing high energy costs, competitive pressure from cheaper imports, and trade tensions. In contrast, member states including the Netherlands, Spain, and Sweden argued for strong climate action, pointing to increasingly severe extreme weather events and the need to strengthen Europe’s position in green technology manufacturing.
To secure broader support, the EU also agreed to delay the introduction of a politically sensitive carbon pricing mechanism for fuels by one year, postponing its launch until 2028.
Before becoming law, the target must receive formal approval from both the European Parliament and EU member states—a step that is generally expected to proceed smoothly following the political agreement.
Source: Reuters
