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EU Reaches 2040 Climate Deal Targeting 90% Emissions Cut

Formal approval now awaits a largely procedural vote.

Overview

  • Negotiators for EU member states and the European Parliament agreed to reduce greenhouse gases by 90% from 1990 levels by 2040.
  • Up to five percentage points of the target may be met from 2036 using non‑EU carbon credits, with detailed rules yet to be set.
  • Coverage of petrol, diesel and gas under the EU emissions‑trading system is postponed to 2028 to limit short‑term costs for motorists and households.
  • The European Commission will conduct reviews every two years with authority to propose changes, including a lower target if carbon sinks deliver less than expected.
  • The deal represents a step back from the Commission’s July proposal and prompted praise for predictability alongside criticism that the flexibilities dilute ambition.