EU sets “flexible” target of cutting emissions by 90 pct by 2040, but delays new carbon market

EU climate ministers have agreed to a 2040 climate change target after watering down the goal in last-minute negotiations, as they raced to clinch the deal before the UN COP30 summit in Brazil.

After negotiating late into Tuesday night, climate ministers from European Union countries approved in a public vote a compromise to cut emissions 90 per cent by 2040, from 1990 levels, but with flexibilities to weaken this aim.

The weakened target would let countries buy foreign carbon credits to cover up to five per cent of the 90 per cent emissions-cutting goal. 

That would effectively weaken to 85 per cent the emissions cuts required from European industries, and pay foreign countries to cut emissions on Europe’s behalf to make up the rest.

The EU also agreed to consider the option, in future, to use international carbon credits to meet a further five per cent of the 2040 emissions reductions – potentially shaving another five per cent off the domestic target.

Additionally, countries agreed a 2035 target to cut emissions in a range of 66.25-72.5 per cent. 

The UN asked all governments worldwide to submit 2035 climate plans before the COP30 climate summit opens on Thursday.

“Setting a climate target is not just picking a number, it is a political decision with far-reaching consequences for the continent,” Danish Climate Minister Lars Aagaard said on Wednesday.

“Therefore, we have also worked to provide comfort that it can be reached in a way that preserves competitiveness, social balance and security.”

In a further effort to win over sceptical countries, the EU also agreed to weaken other politically sensitive climate policies, including by delaying the launch of an upcoming EU carbon market by one year, to 2028.

Still, a handful of countries including Poland, Slovakia and Hungary opposed the 2040 climate target on the grounds it would hit industries’ competitiveness. 

Their opposition was not enough to block the agreement, which needed backing from at least 15 of 27 member states.

The deal meant the EU will not go empty-handed to COP30, where European Commission President Ursula von der Leyen will meet other world leaders on November 6.

The dilution of the target reflects a backlash against Europe’s ambitious climate agenda, from industries and some governments sceptical that it can afford the measures alongside defence and industrial priorities.

The European Commission had originally proposed a 90 per cent emissions-cutting target, with a maximum three per cent share of carbon credits. 

The target was designed to keep the EU on track between its legally binding goals to cut net emissions by 55 per cent by 2030, and reach net zero emissions by 2050.

The EU’s independent climate science advisers said a 90 per cent domestic goal would have been in line with science. 

But they had advised against buying foreign CO2 credits, which they said would divert much-needed investments away from European industries.

By Kate Abnett, Inti Landauro and Benoit Van Overstraeten in Brussels

Source: AAP