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Investing.com -- The European Union member states officially adopted the European Commission’s legally-binding target to reduce EU-wide net greenhouse gas emissions by 90% by 2040 compared to 1990 levels on Tuesday, though with several significant modifications.
Under the Council’s revised proposal, EU member states will be permitted to meet up to 5% of the target through the purchase of international carbon credits.
The Commission may also consider allowing an additional 5% to be fulfilled by credits in the future, potentially reducing the required cut in actual EU emissions to 85% or even 80%. This represents an increase from the Commission’s original proposal, which allowed only 3% of international carbon credit use.
The adopted plan also includes delaying the implementation of the emissions trading system for transport and building emissions, known as ETS 2, by one year to 2028.
While the Council’s position has been diluted from the original proposal, it still significantly increases decarbonization requirements, particularly for the transport sector where emissions are rising, and addresses the issue of shrinking carbon removals caused by a decline in Europe’s forest sink.
The focus now moves to the European Parliament, which must establish its own position before entering negotiations with the Council to finalize the law.
In addition, the EU agreed to submit a nationally determined contribution to the United Nations, targeting greenhouse gas emissions reductions of 66.25% to 72.5% by 2035 compared to 1990 levels. While not legally binding, this commitment will play an important role in guiding EU policy.
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