Cut emissions by 90%: EU Council finally approves bloc's main climate goal

The Council of the European Union has officially adopted the updated climate law. Its key significance is the approval of the bloc's climate commitments to reduce greenhouse gas emissions. By 2040, the EU must reduce them by 90% compared to 1990 levels. The European Union wants to achieve complete climate neutrality by 2050.

This was reported on the official website of the Council of the EU.

Carbon credits

One of the innovations is the permission to use international carbon credits. From 2036, countries will be able to offset up to 5% of the EU's 1990 emissions with them. Only partner countries acting in accordance with the Paris Agreement can be "providers" of such climate credits.

Further priorities

The amended law also defines the fundamental components that the European Commission must take into account in legislative initiatives after 2030. These include:

• permanent CO₂ absorption to offset emissions that are difficult to reduce, in particular, carbon capture and storage processes;
• flexibility within and between sectors, thus allowing the EU to strive for climate objectives in the simplest and most economically efficient ways possible.

Any future regulatory updates must be based on competitiveness, social justice, deregulation, energy security, and affordability.

The climate law also moves the full launch of EU ETS2 back by one year. This emission trading system for the construction and road transport sectors will now take effect from 2028 instead of 2027.

The EU plans to review its climate legislation every two years. Due to the unstable economic and energy landscape, European lawmakers will be guided by the bloc’s competitiveness goals, energy prices, the net reduction of emissions at the EU level, and flexibility in the use of carbon credits.

EcoPolitic previously reported that the European Emission Trading System is under heavy criticism from EU country leaders. In particular, Italy’s Minister of Industry, Adolfo Urso, openly called for the EU to suspend the operation of the carbon market entirely until its review in the summer.