EU Sets Binding Climate Target: A 90% Emissions Cut by 2040

The European Union has set a legally binding target to cut greenhouse gas emissions by 90% by 2040, using carbon credits to account for 5% of the reduction. The target, a political compromise, signals a commitment to net-zero by 2050 while addressing economic and political concerns.

The European Union made a significant stride on Wednesday by establishing a legally binding target to slash greenhouse gas emissions by 90% from 1990 levels by 2040. The decision, however, incorporates the purchase of foreign carbon credits to cover 5% of the required cuts, a move falling short of initial plans.

This agreement mandates an 85% emissions reduction directly from European industries while utilizing carbon credits to assist developing countries in reducing emissions on Europe's behalf. Although the initiative surpasses pledges from other major economies like China, it remains less ambitious than the initial proposal by EU climate advisers, highlighting disagreements among EU nations about the pace and expense of green initiatives.

Danish climate minister Lars Aagaard stated that the target satisfies climate action needs while protecting competitiveness and security. After months of negotiations, the target symbolizes a political compromise to maintain progress toward achieving net-zero emissions by 2050 amidst varied positions and economic challenges among EU members.