The European Commission has pledged to reduce greenhouse gas emissions by 90% by 2040 and to incorporate this target into the European Climate Law. However, with the possibility of achieving part of that reduction in third countries outside the EU through so-called ‘carbon credits’.
The European Commission, which will present this strategy on Wednesday, is attempting to retain the support of hesitant countries by softening the target, as political support for the European greening agenda is waning.
The trade war with the US, economic pressures, and budget dilemmas fueled by higher defense spending are pushing climate policy into the background.
Climate trajectory
The European Climate Law requires a strict trajectory to reduce greenhouse gas emissions to or below zero by 2050. The EU previously set the climate trajectory for 2030 in the Climate Law, with a mandatory 55 percent reduction in emissions compared to the 1990 base year.
That target seems achievable. However, raising that figure to 90 percent by 2040 is a challenge, though necessary to prevent Europe from failing to achieve climate neutrality by 2050.
‘Carbon credits’
In the meantime, it has been decided that, starting from 2036, EU countries will be permitted to purchase a maximum of 3 percent of their emission reductions from other parts of the world – the so-called ‘carbon credits’. These credits may be used from 2036.
Several Member States are resisting the promised ‘tough climate approach’ and are already struggling to achieve the green targets for 2030.
Differences between member states
There are also major differences between Member States on how climate goals can be achieved. For example, Poland and several other Eastern European countries continue to use coal.
In addition, energy prices in Europe are much higher than in China and the United States, which does not promote the competitiveness of European industry.
France is now also openly cautious. Macron wants more investment space and flexibility for member states in achieving the climate goals.
Controversial
Achieving the target CO2 reduction outside the EU’s borders could save around 150 million megatons of CO2 per year in Europe, the Commission calculated.
Member States can consider which industries will be prioritised to achieve the 2040 target. EU countries can also buy carbon credits for their own projects to remove CO₂ from the atmosphere.
However, carbon credits are controversial. While climate disasters in Europe are becoming more frequent, Brussels is watering down the climate agenda and CO2 reduction efforts on its own continent, according to left-wing and scientific circles.
Supporters of the credits, on the other hand, say that where in the world greenhouse gas emissions are limited makes no difference to climate change.
Until now, the world expected Europe to set strict climate targets. However, at the next climate summit in Belém, Brazil, in November, all countries will be required to present new climate plans.
