EU lawmakers have struck a legally binding climate agreement that commits the bloc to reducing greenhouse gas emissions by 90% by 2040 compared to 1990 levels. The deal, reached after months of tense negotiation, allows 5% of the cuts to be met through buying foreign carbon credits beginning in 2036. Parliament and member states will still need to formally approve the target, though such approvals typically ratify pre-negotiated agreements.
What the Deal Requires
The agreement demands an 85% emissions cut from EU industries, with the remaining 5% achieved through paying non-EU states to reduce emissions on Europe’s behalf. The law sets the EU ahead of most major economies in ambition, though it remains weaker than what the EU’s own scientific advisers recommended and falls short of the bloc’s original proposal.
Why It Matters
The EU has tried to position itself as the world’s climate leader, but internal political and economic tensions have made that increasingly difficult. The 90% target is a major step toward net-zero goals, yet the concessions made to reach consensus raise questions about how aggressively Europe can decarbonise while facing high energy prices, industrial competitiveness pressures, and rising global trade frictions.
Divisions Inside the EU
The final agreement reflects a deep split between member states. Countries such as Poland, Slovakia and Hungary resisted stronger cuts, citing challenges faced by domestic industries competing with cheaper Chinese imports and absorbing the impact of U.S. tariffs. On the other side, states like the Netherlands, Spain and Sweden pushed for higher ambition, pointing to worsening climate disasters and the need to catch up with China in green technology manufacturing.
Concessions and Political Trade-Offs
To secure the deal, negotiators softened other climate measures, including pushing back the introduction of a carbon price on fuels by one year to 2028. This delay aims to ease pressure on households and industries at a politically sensitive moment for several governments.
Outlook and Analysis
The agreement signals the EU’s determination to maintain climate momentum despite economic turbulence and political fragmentation. It sends a strong message internationally, but the compromise-driven design also highlights the bloc’s vulnerabilities. A 90% target is historic, yet its credibility depends on solving deeper structural issues industrial competitiveness, energy affordability, and internal political cohesion.
Europe has chosen ambition, but only up to the point where it doesn’t trigger domestic backlash. The real test will come in the implementation phase, where these tensions will sharpen.
With information from Reuters.