Overview
- The European Commission has proposed a binding interim climate target to slash greenhouse gas emissions by 90 percent by 2040 compared with 1990 levels.
- Member states would be allowed to use internationally recognized carbon credits to cover up to three percent of their emissions from 2036 onwards.
- The proposal now enters talks in the European Parliament and with member states under a tight timeline ahead of a September UN deadline for the EU’s 2035 climate plan.
- Key implementation details, including quality standards for imported carbon credits, remain undefined and must be agreed before the target becomes binding.
- Reactions are split, with municipal utility associations warning the target is unrealistic and industry groups endorsing credit flexibility but demanding clear rules.