EU Council, Parliament agree on 90% net GHG emissions reduction

The European Council and its Parliament recently reached a provisional agreement on amending the European Climate Law (ECL), introducing a binding intermediate climate target for 2040 of a 90-per cent reduction in net greenhouse gas (GHG) emissions compared to 1990 levels.

This new target is a crucial step towards the EU’s long-term goal of achieving climate neutrality by 2050, an official release said.

The European Council and its Parliament have reached a provisional agreement on amending the European Climate Law, introducing a binding intermediate climate target for 2040 of a 90-per cent reduction in net GHG emissions compared to 1990 levels.
The pact also sets out certain areas of flexibility to achieve the target and several key elements that should be reflected in the post-2030 climate framework.

First adopted in 2021, the European Climate Law provides the legal basis for the EU’s long-term climate policies, in line with the Paris Agreement. It sets a binding economy-wide climate neutrality target by 2050 and a 2030 objective of reducing net emissions by at least 55 per cent. It also provides for the establishment of an intermediate climate target for 2040.

The agreement also sets out certain areas of flexibility to support the achievement of the 2040 target and several key elements that should be reflected in the post-2030 climate framework.

These will steer the Commission’s future legislative proposals to enable the European Union (EU) to achieve the 2040 target, while helping European industry and citizens throughout the transition.

The agreement also confirms that both co-legislators support postponing the entry into application of the EU emissions trading system for buildings and road transport (ETS2) by a year.

The co-legislators’ agreement includes setting a binding 90-per cent reduction target for net GHG emissions by 2040 and further clarification and additions to the flexibilities proposed by the Commission, including on the contribution of high-quality international carbon credits to the target, the role of domestic permanent carbon removals under the EU ETS, and enhanced flexibility within and across sectors and instruments.

It also includes further developing the principles of the enabling framework for the post-2030 climate architecture, with a focus that includes competitiveness, simplification, social fairness and national circumstances, energy security and affordability, support for innovation and investment; reinforcing the review mechanism; and postponing the start of the EU ETS2 by a year, from 2027 to 2028.

The provisional agreement includes a balanced approach to the role of international carbon credits in the post-2030 climate framework.

The co-legislators agreed to allow, from 2036 onwards, the use of high-quality international credits to make an adequate contribution towards the 2040 target, up to 5 per cent of 1990 EU net emissions. This corresponds to achieving domestic emission reductions of 85 per cent by 2040.

A pilot phase for 2031-2035 may also be established to support the development of a high-integrity international credit market.

The co-legislators also reached a compromise on the scope of potential flexibilities to be examined in the next review of the system. Among other things, the review will cover the potential use by member states of additional high-quality international credits to fulfil up to 5 per cent of their post-2030 targets and efforts.

The agreement reached by the Council and Parliament is provisional, pending formal endorsement and adoption by both institutions.

Fibre2Fashion News Desk (DS)