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EU Backs 90% Emissions Cut by 2040 With Overseas Credits, Delays ETS2 to 2028

The compromise sets the bloc’s COP30 stance pending scrutiny by the European Parliament.

Overview

  • After overnight talks, environment ministers approved a political deal allowing up to five percentage points of the 2040 target to be met with international certificates, lowering effective in‑EU cuts to roughly 85%.
  • Ministers confirmed the EU’s 2035 contribution as a span of 66.25% to 72.5% below 1990 levels for submission at the UN climate talks in Belém.
  • The start of the separate emissions trading system for transport and buildings (ETS2) was postponed by one year to 2028 over concerns about fuel and heating costs.
  • Environmental groups condemned the use of overseas credits and warned of weaker domestic decarbonization, as recent scientific assessments from UNEP and climate institutes flag insufficient global plans and rising tipping‑point risks.
  • The agreement reflects divisions over ambition and competitiveness among members such as France, Poland and Italy, and it must still be negotiated with the European Parliament before becoming binding.