· 2 min read
illuminem summarises for you the essential news of the day. Read the full piece on Sustainable Times or enjoy below:
🗞️ Driving the news: The European Commission has confirmed its proposal to reduce net carbon emissions by 90% by 2040, compared to 1990 levels, but with a controversial addition
• Some EU member states, including France and Italy, have lobbied for a limited use of carbon credits from developing countries to help meet this goal
• This allowance is capped at 3% of the total target, starting from 2036
🔭 The context: The EU has been under significant pressure to balance ambitious climate targets with economic and political realities
• Member states, particularly those with large industrial sectors, have raised concerns that setting aggressive emission cuts without flexibility could harm economic stability
• The proposal seeks to accommodate these concerns while still aiming for substantial reductions in emissions by 2040 and climate neutrality by 2050
🌍 Why it matters for the planet: While the carbon offset provision is seen as a potential lifeline for industrial economies, it also raises concerns about delaying real emission reductions and potentially undermining the EU's climate leadership
• Critics argue that the reliance on offsets could divert attention from necessary domestic reductions and lead to funding unregulated or ineffective projects abroad
⏭️ What's next: A formal vote on the proposal is expected in September
• If approved, further legislation will be introduced by 2026 to regulate the buying and selling of carbon credits
• Additionally, the EU plans to adjust its Emissions Trading System to allow more flexibility for industries, enabling some sectors to buy more time for decarbonisation
💬 One quote: “The goal is clear, the journey is pragmatic and realistic,” — European Commission President Ursula von der Leyen
📈 One stat: The proposal limits carbon credits to no more than 3% of the EU’s 2040 carbon reduction goal, or approximately 27 million tons of CO2
See on illuminem's Data Hub™ the sustainability performance of over 8,000 companies.
Click for more news covering the latest on climate change.
