Brussels: The European Commission has announced the final agreement reached by EU member states and the European Parliament to reduce greenhouse gas emissions by 90 percent by 2040. This significant step is aimed at achieving a fully decarbonized European economy by 2050 and provides a clear path for climate action and investment certainty.
According to Kuwait News Agency, the agreement permits the use of high-quality international carbon credits for up to five percent of the required cuts compared to 1990 levels. It also includes the use of permanent removals under the EU Emissions Trading System to offset hard-to-reduce emissions. Biennial assessments will be introduced to track progress, and the implementation of the emissions trading system for buildings, road transport, and small industries will be delayed from 2027 to 2028.
European Commission President Ursula von der Leyen expressed satisfaction with the EU's commitment to climate action and adherence to the Paris Agreement. She highlighted that the bloc now has a clear path to achieving climate neutrality, with a flexible plan to support a competitive clean transition.
The agreement still awaits formal approval from the European Parliament and the EU Council before it can be enacted.