EU reaches tentative deal to set 90% emissions cut goal for 2040
The bloc already has two binding targets: net zero emissions in 2050 and a 55% cut by 2030 from 1990 levels
[BRUSSELS] The European Union clinched a deal to reduce greenhouse gases by 90 per cent to 2040 compared with 1990 levels, a target that seeks to keep the bloc on track to reach net zero by the middle of the century.
Representatives of the European Commission, the bloc’s parliament and member states in the EU Council reached a tentative agreement on the final shape of the climate law at a meeting in Brussels in the early hours of Wednesday (Dec 10), according to Denmark, which holds the nation group’s rotating presidency.
“Today, Europe has united around our clear direction for climate policy – based in science and protecting our security and competitiveness,” said Danish Climate Minister Lars Aagaard. “The target delivers on the need for climate action while safeguarding our competitiveness and security.”
A key element of the deal is the EU allowing international carbon credits to account for a greater share of emissions reductions. The limit was set at five percentage points of emissions reductions, compared with three percentage points originally proposed by the commission. That means the effective goal for the 27-nation bloc will be to reduce domestic emissions by 85 per cent.
The EU already has two binding targets: net zero emissions in 2050 and a 55 per cent cut by 2030 from 1990 levels. But the broad consensus on climate action that prevailed five years ago has fractured, giving way to trade protectionism and policies that prioritise lowering energy costs. That’s made the 2040 target a highly sensitive issue.
The deal reached in the so-called trilogue format will now need to be approved by member states and the European Parliament to become a law.
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It also includes a one-year delay to a new carbon market for transport and heating fuels until 2028. A group of countries and lawmakers had demanded the postponement of the cap-and-trade programme on concerns it would boost energy prices and trigger a backlash from voters. BLOOMBERG
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