EU unveils flexible carbon cut plan, targets 90% reduction by 2040

The European Commission unveiled a new legislative proposal aiming to reduce the EU’s carbon footprint by up to 90 percent by 2040—a target notably softer than initially planned.

The proposed goal reflects significant compromises following resistance from member states, granting unprecedented flexibility in how countries can achieve the reductions, Caliber.Az reports, citing foreign media.

Initially, the Commission’s scientific advisors recommended a strict domestic-only target, akin to the EU’s existing 2030 and 2050 climate goals. However, facing pushback from governments, the Commission now permits a portion of the 2040 target to be met through international carbon credits. This mechanism would allow EU countries to finance emissions-reduction projects abroad, mainly in developing countries, and count those reductions toward their own targets.

Critics, including the bloc’s scientific advisers, caution that reliance on carbon credits risks undermining domestic decarbonization efforts. Nevertheless, EU Climate Commissioner Wopke Hoekstra defended the decision during a press conference, calling the added flexibility “an improvement to the system.”

“It all depends on the how … and I’m absolutely convinced we will pull it off,” Hoekstra said, noting that the Commission’s climate department will develop strict rules governing credit use. “Let’s also take into account the fact that the planet doesn’t discriminate where emissions are being put into the air. So we think it is fair game and actually smart to do the vast majority here, but also allow our companies and countries to be flexible with the last couple of percentage points.”

The Commission’s proposal sets a maximum of 3 percentage points of the target to be met via credits, aligning with Germany’s stance. France, backed by Poland, has pushed for greater flexibility and suggested delaying a final agreement, setting the stage for tough negotiations.

Additionally, the plan offers two other options to ease compliance: integrating CO2 removals into the EU carbon market to reduce pressure on energy-intensive industries, and allowing more flexibility between countries’ CO2 absorption and emissions reduction targets.

Executive Vice President Teresa Ribera acknowledged the backlash but hailed the proposal as “a significant achievement,” emphasizing that despite calls to delay or weaken climate action, “the commitment remains.”

By Vafa Guliyeva