EU Seals 2040 Climate Deal With Credit Option

European Union (EU) member states and lawmakers have struck a final agreement on a 2040 target to cut greenhouse gas emissions, allowing part of the reductions to be achieved through carbon credits purchased outside the continent.

Some countries, led by Italy, had previously raised concerns about the goal of reducing emissions by 90 per cent from 1990 levels by 2040. Under the deal, five per cent of the required cuts can be met using international carbon credits, a move environmental groups say merely shifts Europe’s climate responsibility elsewhere.

The agreement also leaves room for an additional 5% of reductions to be achieved through global carbon markets in the future, if necessary.

Following pressure from Poland and Hungary, the introduction of an emissions trading scheme for road transport and heating buildings has been postponed by a year, to 2028.

The EU remains one of the world’s largest emitters—behind China, the United States, and India—but is considered the most committed major economy to climate action, having already reduced emissions by 37 per cent since 1990.

The deal will now require formal approval from the 27 EU nations and the European Parliament.