On Tuesday evening, negotiators from Parliament and Council reached a provisional political agreement on an amendment to the EU Climate Law, setting a new, intermediate and binding 2040 EU climate target of reducing net greenhouse gas (GHG) emissions by 90% compared to 1990 levels.

Flexibility for member states

Co-legislators agreed to introduce new flexibilities in how the 2040-target can be met as they believe the green transition and improving EU competitiveness go hand in hand.

From 2036, up to five percentage points of the emissions reductions (two percentage points more than proposed by the Commission) can come from high-quality international carbon credits compatible with the Paris Agreement. Following a push from Parliament, further safeguards to the international carbon credits were incorporated in the text including the prevention of funding of projects in partner countries that run contrary to the strategic interests of the EU.

The Commission will analyse different…