The European Parliament on Thursday backed a target to cut greenhouse gas emissions by 90% by 2040 compared with 1990 levels, broadly aligning with the position agreed earlier by EU member states. 379 MEPs voted in favor, 248 against.

The 2040 target is now legally enshrined as an intermediate step towards 2050, when the EU aims to be climate neutral.

Member states agreed to the European Commission’s proposal last week, although they have significantly weakened it. Lawmakers approved a series of compromise measures, including a provision that, starting in 2036, allows the EU to outsource 5% of the target through international climate certificates or carbon credits purchased from non-EU countries.

The European Commission had initially proposed a limit of 3%. The European Parliament now wants to clarify exactly what these CO2 credits are and how they are monitored.

Climate target

Another reduction approved by Parliament is the postponement of a so-called CO2 tax by one year, to 2028. This means that an additional tax on gasoline and energy for companies with high emissions will no longer apply from 2027 onward.

The question is what impact this postponement will have on achieving the 2030 climate target. By then, the EU will need to reduce emissions by 55 percent. 

Lawmakers also called for the European Commission to review progress toward interim climate goals every two years, taking into account the latest scientific data, technological developments, and the EU’s global competitiveness.

The target may be lowered if it turns out that decarbonizing the industry would have an overly significant economic and social impact.