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EU Commission proposes 2040 climate target with flexibilities
Published by Global Banking & Finance Review®
Posted on July 2, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 2, 2025
1 min readLast updated: January 23, 2026
The EU Commission proposes a 90% emissions cut by 2040, allowing carbon credits from developing countries to ease domestic industry impact.
BRUSSELS (Reuters) -The European Commission on Wednesday proposed that the EU reduce its net greenhouse gas emissions 90% by 2040, compared with 1990 levels, but included flexibilities to soften the emissions cuts for domestic industries.
The proposal said the European Union can buy carbon credits from developing countries and count these credits to meet 3 percentage points of the 2040 goal. This is a new approach - the EU's existing climate targets are based solely on domestic emissions cuts.
The proposal must be negotiated and approved by the European Parliament and a reinforced majority of EU countries.
(Reporting by Kate Abnett, editing by Bart Meijer)
The European Commission proposed that the EU reduce its net greenhouse gas emissions by 90% by 2040 compared to 1990 levels.
The proposal allows the EU to buy carbon credits from developing countries, which can count towards meeting 3 percentage points of the 2040 goal.
The proposal must be negotiated and approved by the European Parliament and a reinforced majority of EU countries.
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