Despite facing political opposition, the European Union finally approved a new climate change target to reduce greenhouse gas emissions by 90% by 2040. Governments and EU lawmakers reached a political compromise last year after a fierce battle. The new climate target is more ambitious than the emissions reduction pledges made by most major economies, including China.
To achieve this target, European industry needs to reduce emissions by 85% from 1990 levels. The EU will compensate developing countries with carbon credits so that they reduce emissions on behalf of Europe to reach the 90% target.
Last year, the EU reached a consensus on this goal after some debate between countries such as Spain and Poland and Italy. Countries such as Spain argue that increasing drought and fires justify more ambitious targets. Poland and Italy, on the other hand, advocated for more modest emissions cuts, saying their struggling industries could not afford the initial investment. A majority of EU ministers signed off on the legally binding target at a meeting in Brussels. The Czech Republic, Slovakia and Poland objected. The climate target will now be incorporated into EU law.
In the future, as part of the agreement, the EU may also use international carbon credits to reduce emissions by a further 5%, which may further alleviate the required emission reduction efforts within the EU.
The deal would also delay the launch of the politically sensitive EU carbon market by a year to 2028. The move is aimed at winning support from countries skeptical of climate goals. The target aims to keep Europe's commitment to net-zero emissions by 2050 on track, but falls short of the 90% domestic emissions reduction target recommended by the EU's climate science advisers. The target is weaker than Brussels' original plan, reflecting differences among EU governments over the cost and speed of implementing the green agenda.