German coalition deal backs EU’s 90 percent climate target — with caveats

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🗞️ Driving the news: Germany’s incoming coalition government has expressed conditional support for the EU’s proposed 2040 climate target of a 90% emissions reduction, but only if countries are permitted to use international carbon credits and carbon removals to meet part of their obligations
• The agreement between the CDU and SPD includes several caveats and proposes integrating these flexibilities into EU climate frameworks, including the Emissions Trading System and Climate Law

🔭 The context: The EU Commission proposed a 90% emissions cut by 2040 as a key milestone on the path to net zero by 2050, but support has been fragmented among member states
• Germany, the EU’s largest economy, had previously committed to 88% emissions cuts by 2040 and full climate neutrality by 2045
• Its new government is now pushing to allow offsetting up to 3 percentage points of the EU goal through certified international credits, along with recognising permanent carbon removals

🌍 Why it matters for the planet: While international offsets and removals can lower compliance costs, critics argue they risk weakening climate ambition by allowing wealthier nations to outsource decarbonisation
• Environmental groups and MEPs warn this approach could undermine the credibility and equity of EU climate policies
• If adopted, Germany’s position may set a precedent for other member states, potentially diluting the EU’s domestic decarbonisation efforts

⏭️ What's next: The SPD’s party membership is expected to approve the coalition deal
• Meanwhile, EU lawmakers will continue negotiations on the 2040 target, with Germany now pushing for structural inclusion of offsets and removals
• Brussels will also need to clarify how such mechanisms will be certified, limited, and integrated into the EU’s emissions accounting rules ahead of legislative proposals later this year

💬 One quote: “Using such credits would undermine the credibility of our climate policies and unduly shift responsibility onto other nations.” – Tiemo Wölken, SPD MEP

📈 One stat: Germany’s proposed use of international offsets would be capped at 3 percentage points of the EU’s 90% emissions reduction target for 2040

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