EU seals 2040 climate target to slash CO₂ by 90% – with major carveouts

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illuminem summarises for you the essential news of the day. Read the full piece on Euractiv or enjoy below:

🗞️ Driving the news: The EU has finalized a 2040 climate target to reduce CO₂ emissions by 90% from 1990 levels
• However, the deal allows 10% of this reduction to be met through carbon credits from developing nations, diluting the overall ambition
• This agreement marks the end of months of political clashes and sets the stage for the bloc’s future climate policy

🔭 The context: The decision follows contentious negotiations, with industry-friendly capitals and cautious lawmakers seeking compromises
• The deal permits countries to meet up to 5% of their emissions reduction targets through international offsets, with the possibility of outsourcing further cuts, making the target less ambitious than initially intended.

🌍 Why it matters for the planet: The use of carbon credits reduces the environmental effectiveness of the EU’s climate plan
• While the target still aims for a significant reduction in CO₂, relying on external offsets means that some of the emissions cuts may not happen directly within the EU, potentially undermining its leadership in the global climate fight
• This compromise could slow the real-world impact of Europe’s efforts to combat climate change.

⏭️ What’s next: This deal could influence other countries’ climate policies, particularly in terms of how much they rely on external carbon offset programs to meet their targets
• The EU will need to balance domestic reductions with global cooperation to effectively fight climate change

💬 One quote: "Countries will also be permitted to apply to outsource a further five percentage points," said EU negotiators

📈 One stat: The EU’s domestic emissions cuts could fall to 80% if all offsets are utilised

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