EU provisionally agrees to cut greenhouse‑gas emissions 90% by 2040

The European Union has provisionally agreed on an ambitious new target: reduce greenhouse‑gas emissions by 90% from 1990 levels by 2040. The compromise, announced by the EU parliament, pushes the bloc ahead of most major economies but remains a negotiated middle ground between harder and softer proposals.

The deal includes industry‑specific rules: European industries are expected to cut emissions by about 85%, with the remaining reduction made up through the sale of carbon credits to developing countries. The agreement also allows up to 5% in additional international carbon credits and delays a planned carbon tax on fuels by one year to 2028.

Key points

• Target: 90% reduction in greenhouse‑gas emissions vs. 1990 levels by 2040 (provisional agreement).
• Industry role: an estimated 85% cut required from European industry; offsets via carbon credits fill the gap.
• Flexibilities: up to 5% international credits allowed; carbon tax on fuels deferred to 2028.
• Political compromise: some countries pushed for milder measures (e.g., Poland, Hungary), while others pressed for stronger action (e.g., Spain, Sweden).

Context and implications

The pact is a major step toward the EU’s long‑term goal of climate neutrality by 2050, though it falls short of some scientific recommendations. The bloc has already cut emissions by roughly 37% since 1990, putting it ahead of other large economies on relative progress. Still, the plan depends on industrial decarbonization at scale and continued use of carbon markets.

Economically, negotiators framed the compromise as a balance between urgent climate action and protecting competitiveness and energy security. The use of offsets and a temporary delay to certain taxes are measures intended to ease the transition for energy‑intensive sectors.

What happens next

The agreement is provisional and must be ratified by the full EU Parliament and by member states before becoming law. Expect further debate on implementation details, timelines for industrial sectors, and the design of carbon‑credit mechanisms.

For more detail, see the original coverage: Engadget — EU pledges 90% cut by 2040.

Discussion: Do you think a 90% target for 2040 — combined with offsets and a delayed carbon tax — is ambitious enough to keep the EU on track for 2050 climate neutrality? What trade‑offs would you accept to protect industry while accelerating decarbonization?