EU eases climate plan to cut emissions by 2040

European Union member states have significantly softened key elements of the bloc’s plan to reduce greenhouse gas emissions by 2040.

Following lengthy negotiations—driven in part by Italy and Romania—the EU agreed to concessions allowing a delay in the launch of the controversial carbon pricing system and the use of international carbon credits to meet part of the targets.

The overall goal, which requires EU countries to cut emissions by 90% by 2040 compared to 1990 levels, was formally approved by EU governments early Wednesday after 18 hours of tense talks, the Financial Times reports.

This target forms a central part of the EU’s green agenda ahead of next week’s UN COP30 climate conference in Brazil. Member states also agreed to reduce emissions by 66.3–72.5% by 2035.

Countries that resisted legally binding targets won permission to offset up to 5% of their reduction goals through the sale of international carbon credits.

Additionally, the deal allows for another 5% offset using international credits in emergency situations—such as wildfires—and permits a review of the 90% target every two years if it causes economic setbacks. The contentious emissions trading system (ETS) for households and transport has also been postponed.

The launch of the ETS for households and road transport, which had been among the most divisive issues—especially in Eastern European countries—has been deferred.

Tags: EU