EU proposes 2040 climate target with carbon credit allowance

Brussels: The European Commission on Wednesday proposed a 90% reduction in greenhouse gas emissions by 2040 when compared to levels seen in 1990.

The Commission said the proposal would build on the existing binding goal of reducing these kinds of emissions by at least 55% by 2030 .

“As European citizens increasingly feel the impact of climate change, they expect Europe to act. Industry and investors look to us to set a predictable direction of travel,” said European Commission President Ursula von der Leyen.

“Today we show that we stand firmly by our commitment to decarbonize European economy by 2050. The goal is clear, the journey is pragmatic and realistic,” von der Leyen added.

The proposed amendment would provide a “more pragmatic and flexible way” of reaching the target, the Commission claimed, that would soften the 90% emissions target for European industries.

Under the plan, member states would be granted more flexibility to achieve the climate targets. Currently, they have only been able to count domestic greenhouse gas reductions, but from 2036, the proposal allows carbon credits from non-EU countries to count for up to 3% of the overall 90% reduction compared to 1990 levels.

“We are not choosing between the economy and the green agenda, we are choosing both. Europe reaffirms its commitment to a fair, ambitious, and competitive green transition,” said EU Commission Vice President Teresa Ribera.

“Agreeing on the 90% climate target provides us with a clear lighthouse to guide our future actions,” she added.

The Commission said the proposal was based on a detailed assessment by the Intergovernmental Panel of Climate Change and the European Scientific Advisory Board on Climate Change.

It said it followed engagement with the various member states, stakeholders, civil society and citizens among others.

Those opposing the bloc’s climate action ambitions argue the measures hamper economic progress.

Poland and the Czech Republic have regularly voiced their concern over climate targets citing economic and energy security considerations.

Others including Italy and Hungary are concerned about the impact decarbonizing heavy industry will have at a time when Europe is working to strengthen its industry amid fierce competition from the United States and China.

The proposal will now be submitted to the European Parliament and the Council for discussion and adoption in accordance with ordinary legislative procedure.