By Abdullahi Lukman
The European Union Commission is set to propose a legally binding target to reduce net greenhouse gas emissions by 90 percent by 2040 compared to 1990 levels, according to a draft of the plan seen ahead of its expected Wednesday announcement.
For the first time, the proposal would allow EU countries to meet up to 3 percentage points of their reduction goals by purchasing carbon credits from developing nations through a U.N.-backed market.
The 2040 target aims to keep the EU on track to reach its broader goal of net-zero emissions by 2050.
However, the draft introduces flexibilities in response to pressure from several member states—including France, Germany, Italy, Poland, and the Czech Republic—that want to ease the impact of stricter cuts on domestic industries.
Carbon credits, which come from projects that reduce emissions abroad such as forest restoration, would be phased in starting 2036 under strict criteria designed to ensure environmental integrity.
The proposal also gives countries more freedom to decide which sectors of their economy will contribute most to meeting the emissions goal.
Europe is currently facing rapid warming and climate-related disruptions like heatwaves and wildfires, intensifying the urgency for climate action.
But the Commission’s ambitious targets have exposed divisions among EU members, with some arguing that industries already burdened by tariffs and high energy costs cannot absorb tougher emissions rules.
The draft stresses that decarbonization is essential not only for climate protection but also as a driver of economic growth when aligned with industrial and trade policies.
Still, the use of foreign carbon credits is controversial, with climate advisors warning that it may divert investment from domestic clean technologies.
The 2040 climate target must be negotiated and approved by EU countries and lawmakers, a process that could take years.
Meanwhile, the EU faces a mid-September deadline to submit a new 2035 emissions reduction target to the United Nations, which is expected to be based on the 2040 plan.