Overview
- Parliament and Council negotiators struck a provisional political agreement to amend the EU Climate Law with a binding 2040 target of 90% net greenhouse gas cuts versus 1990.
- From 2036, up to five percentage points of the target could be met with high‑quality international carbon credits, subject to added safeguards and a forthcoming Commission analysis to protect ETS stability.
- The deal permits permanent domestic carbon removals to compensate hard‑to‑abate emissions within the EU ETS and expands flexibility across sectors and instruments to lower costs.
- The launch of ETS2, covering fuel use in buildings and road transport, would be postponed by one year to 2028.
- The Commission would conduct biennial reviews on progress, technology and competitiveness with the option to propose amendments, and the agreement still requires a Parliament vote, Council endorsement and publication before entering into force.