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EU Agrees 90% Emissions Cut by 2040, With Offsets and ETS Fuel Delay

Formal approval is pending after negotiators softened the Commission’s July plan.

Overview

  • Up to five percentage points may be met with international carbon certificates starting in 2036, making domestic cuts as low as roughly 85%.
  • Inclusion of petrol and natural gas in the EU carbon market shifts from 2027 to 2028 to limit short-term consumer price spikes.
  • Parliament and member states must still formally adopt the package, which negotiators from both sides endorsed overnight in Brussels.
  • The accord mandates Commission reviews every two years, with power to propose new laws or adjust the path if carbon sinks underperform.
  • The deal reflects a scaled-back version of the July Commission proposal after pushback from countries worried about industrial costs, drawing praise for pragmatism and criticism for weakening ambition.