Brussels has made slight concessions to member states. The climate law will be more flexible.

The European Union has set itself a new, transitional and legally binding climate target. By 2040, it aims to reduce net greenhouse gas emissions by 90 percent compared to 1990 levels.

Emissionen aus der größten Flüssiggasfabrik Westeuropas stehen sinnbildlich für die industriellen Herausforderungen der europäischen Klimapolitik. Foto: Lisi Niesner/File Photo/Reuters

Emissions from the chimneys of Western Europe’s largest liquefied natural gas plant. Photo: Lisi Niesner/File Photo/Reuters

On Tuesday, the European Parliament supported a political agreement with the Council on amending the EU Climate Law by a vote of 413 in favor, 226 against, with 12 MEPs abstaining.

The new target is intended to keep the EU on track to achieve climate neutrality by 2050, which is already enshrined as a legally binding obligation for all Member States, the European Parliament announced.

Greater flexibility for member states

The revised climate law gives member states greater flexibility in meeting the target. From 2036, up to five percentage points of the total emissions reduction can come from high-quality international carbon credits. This is a compromise designed to address the concerns of several countries, including Italy.

These credits can only be used in sectors not covered by the EU Emissions Trading System (ETS) and only from partner countries whose climate targets are in line with the Paris Agreement.

At the same time, Parliament has pushed through safeguards to prevent the financing of projects that would be contrary to the Union's strategic interests.

The text also allows the use of domestic permanent carbon removal to offset hard-to-reduce emissions under the ETS. The aim is to achieve climate ambitions in the most cost-effective way without jeopardizing the competitiveness of European industry.

ETS2 postponement and concerns about shifting responsibility

The agreement also includes a postponement of the introduction of the ETS2 system, which is to cover CO₂ emissions from fuel combustion in buildings and road transport. Instead of the originally planned year of 2027, it will not come into force until 2028. The postponement was pushed through mainly by Poland and Hungary, with some Member States still calling for a further delay.

The possibility of using carbon credits outside the EU has drawn criticism from environmental organizations, which accuse Brussels of "offshoring" the fight against climate change. In the future, the EU could allow member states to achieve up to an additional five percent of their targets through international markets.

The European Commission will assess progress towards the 2040 target every two years. It will take into account the latest scientific knowledge, technological developments, industrial competitiveness, energy price developments, and the social impact on households.

Based on these assessments, the Commission may propose adjustments to the climate target or additional measures to strengthen the protection of the EU's prosperity, competitiveness, and social cohesion.

The EU wants to remain a global leader

The European Union is currently the third largest emitter after China, the United States, and India. However, by 2023, it had managed to reduce emissions by 37 percent compared to 1990. Despite concessions in the new target, the Union continues to claim global leadership in the fight against climate change and calls on other major polluters to intensify their efforts.

"We are responsible for only six percent of global emissions," European Commissioner for Climate Action Wopke Hoekstra said, according to the Straits Times. "Although Europe is a leader in climate action and finances a large part of global solutions, solidarity and reciprocity from partners are not always a given. That has to change."

Final approval of the target still needs to be confirmed by the EU Council. Once adopted, the new climate law will take effect 20 days after its publication in the Official Journal of the European Union.