EU targets 90% greenhouse gas emissions cut by 2040 with carbon credit option

The European Union plans to cut greenhouse gas emissions by 90% by 2040 and, for the first time, allow limited use of foreign carbon credits to meet the target.

For the first time, up to 3% of this target could be met using carbon credits from developing countries, starting in 2036.

This shift comes amid pressure from countries such as Germany, France, and Italy, seeking flexibility for domestic industries facing economic strain.

The credits, intended for projects such as forest restoration, would be subject to strict standards, but critics argue they may divert funds from local climate efforts.

The proposal also lets countries choose which sectors contribute most to their emissions cuts.

While aimed at reinforcing the EU’s 2050 net-zero goal, the plan still needs approval from member states and lawmakers.

The EU must submit a revised 2035 climate target to the United Nations by mid-September.

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