EU Member States Reach Compromise on 2040 Climate Target, Expanding Role for Carbon Credits

After months of political stalemate, the European Union’s environment ministers have reached a compromise agreement on the bloc’s next major climate milestone, a 90% reduction in greenhouse gas (GHG) emissions by 2040 compared to 1990 levels [1][2]. The deal, finalized early Wednesday following overnight negotiations, paves the way for the EU to formally submit its new Nationally Determined Contribution (NDC) ahead of the upcoming COP30 climate summit in Belém.

The agreement revises the EU Climate Law, first adopted in 2021, which enshrines the bloc’s 2050 net-zero goal and its current target of a 55% reduction by 2030. While the 2040 goal retains its ambition, member states secured a range of flexibilities to address competitiveness and energy security concerns. Chief among them is a larger role for international carbon credits, allowing up to 5% of emissions reductions to come from projects outside the EU, an increase from the 3% cap proposed by the European Commission. A further 5% may be considered in the future under a revision clause if the EU deviates from its decarbonization pathway [1][2].

The deal also delays the rollout of the ETS2 carbon pricing system, which will cover road transport and building heating fuels, by one year to 2028. Meanwhile, ministers approved an intermediate 2035 target to cut emissions by 66.25%–72.5% from 2019 levels, forming part of the EU’s Paris Agreement obligations [1].

While the compromise faced resistance from more ambitious member states such as Germany, Spain, and Sweden, it was deemed necessary to break the impasse. “We’ve agreed to a legally binding 2040 target of -90%, with a domestic target of 85% and up to 5% international credits,” said EU Climate Commissioner Wopke Hoekstra, calling the outcome “a good compromise” that balances ambition with economic realism [2].

Countries including Poland, Hungary, and Czechia opposed the deal, warning of industrial impacts, while others stressed the importance of maintaining Europe’s competitiveness amid global market pressures. Germany’s environment minister, Carsten Schneider, emphasized that “the combination of environmental protection and economic policy is central” as the EU navigates the transition against the backdrop of geopolitical instability and rising defence costs [2].

Despite the concessions, the agreement is being hailed as a vital step to maintain EU climate leadership and send a strong signal to global markets. The text now moves to the European Parliament for debate and final approval ahead of COP30.

参考资料
[1] ESG Today. EU States Reach Compromise Deal on 2040 Climate Target with Bigger Role for Carbon Credits. Retrieved from https://www.esgtoday.com/eu-states-reach-compromise-deal-on-2040-climate-target-with-bigger-role-for-carbon-credits/

[2] Euronews. EU ministers break deadlock on CO2 emission cut by 2040 amid political pressure. Retrieved from https://www.euronews.com/my-europe/2025/11/05/eu-ministers-break-deadlock-on-co2-emissions-cut-by-2040-amid-political-pressure