Brussels: On Thursday, the European Parliament adopted its position on amending the EU Climate Law, establishing a new, intermediate, and binding 2040 climate target to reduce net greenhouse gas (GHG) emissions by 90% compared to 1990 levels.
According to Cyprus News Agency, this decision aligns with the proposal by the European Commission, emphasizing the integration of environmental goals with EU competitiveness.
The Parliament supports the introduction of new flexibilities in achieving these targets. From 2036, member states can use up to five percentage points of net emissions reductions from high-quality international carbon credits, subject to robust safeguards. This goes beyond the Commission’s initial proposal of a three-percentage-point cap. Additionally, MEPs advocate for the use of domestic permanent carbon removals to offset hard-to-abate emissions within the EU emissions trading system (EU ETS), and propose enhanced flexibility across sectors to achieve the targets cost-effectively.
The Parliament has also agreed to a proposal by member states to delay the introduction of the EU’s ETS2 by one year, now set to begin in 2028. ETS2 is crucial for regulating CO2 emissions from fuel combustion in buildings and road transport.
The Commission is tasked with assessing the progress towards intermediate targets every two years, considering technological advancements and EU competitiveness. This review will evaluate net removals at the EU level, emerging challenges, and potential enhancements to EU industrial competitiveness. The review will also consider energy price trends and their effects on businesses and households.
Following the review, the Commission may propose an amendment to the EU climate law if necessary. This could involve adjusting the 2040 target or implementing additional measures to support the EU’s competitiveness, prosperity, and social unity.
The text was adopted by a vote of 379 to 248, with 10 abstentions. The European Parliament is now set to begin negotiations with member states on finalizing the law.
The European Climate Law aims to make the EU climate-neutral by 2050, with a legally binding target to reduce net GHG emissions by at least 55% by 2030 compared to 1990 levels. Setting ambitious 2040 targets is essential for the EU’s international climate commitments, as the 30th UN climate conference approaches in Bel©m, Brazil. A delegation from the Parliament will attend the conference from 17 to 21 November.