The European Parliament announced on the 10th that the European Parliament and the Council of the EU reached a provisional political agreement on the evening of the 9th to amend the European Climate Law, proposing to reduce the EU’s net greenhouse gas emissions by 90% by 2040 compared to 1990 levels, thereby setting a new binding mid-term target to achieve climate neutrality by 2050.
According to the agreement, the Parliament agreed to introduce more flexible measures for member states regarding how to achieve the 2040 target. From 2036, member states may offset their emission reduction tasks by purchasing international carbon credits from other cooperating countries, but this may not exceed 5% of the total emissions in 1990.
The agreement also postpones the start date of the carbon emissions trading system covering buildings and road transport from 2027 to 2028.
According to the agreement, the European Commission will evaluate the progress of member states in achieving the mid-term target every two years, based on the latest scientific data, technological developments, and the competitive status of the EU. After evaluation, if necessary, the European Commission can propose amendments, including adjusting the 2040 target or introducing additional supporting measures.
The European Parliament will vote on this informal agreement, and the Council of the EU also needs to approve it. The agreement will take effect 20 days after its publication in the Official Journal of the EU.
The EU passed the European Climate Law in 2021, making the achievement of climate neutrality by 2050 a legal obligation that member states must comply with, and set a binding target to reduce net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. Setting the 2040 greenhouse gas reduction target is regarded as an important step for the EU in fulfilling its international climate commitments.