The European Commission has unveiled its plan to reduce the EU’s net greenhouse gas emissions by 90% by 2040.

The much-awaited target to cut emissions, which is measured against pollution levels from 1990, is a significant milestone on the EU’s path to decarbonise its economy by 2050.

The commission said that the target “will give certainty to investors, innovation, strengthen industrial leadership of our businesses, and increase Europe’s energy security.”

It stated that defining the 2040 climate target now will enable the EU to put in place the necessary policies and investments to ensure that the transition to climate neutrality goes hand in hand with a strong and stable economy, competitive industry and future-proof jobs in Europe.

In a hope to soften the blow for some of Europe’s key domestic industries, the plan includes “greater flexibilities across sectors to help achieve targets in a cost-effective and socially fair way.”

Despite some backlash against green policies, the EU insisted that its latest Eurobarometer polling, published last week, showed “strong citizens support for EU climate action, providing a solid mandate to stay the course of the EU’s clean transition agenda.”

Wopke Hoekstra, the EU Climate Commissioner, said the discussion around the target had been “politically sensitive” but defended measures introduced to win over national capitals.

The new approach to reaching the target allows the use of domestic carbon removals through the EU’s emissions trading system and offers more flexibility across different sectors of the economy. It also opens the door for limited use of carbon offsets from 2036.

“If we don’t manage to do it in a way that is verifiable, certifiable and additional, then you could raise questions on whether it is actually effective.

“But humanity has done more difficult things than this, and I am absolutely convinced that we will pull it off.”
Wopke Hoekstra

An EU official also defended the proposal, saying that the use of international credits was “politically pragmatic and economically rational.”

The target would allow carbon credits to make a 3% contribution to emission reductions, in line with Germany’s position, and would be allowed only in the second half of the next decade.

Emissions Target Criticised

Green groups, however, are furious that the target leaves room to count foreign carbon credits, such as planting trees and saving forests, that researchers have often found are ineffective.

Green groups also said that the target fell short of the EU’s responsibilities as one of the world’s biggest historical emitters of greenhouse gases.

Colin Roche, Climate justice and energy Coordinator at Friends of the Earth Europe, asserted that the European Commission will try to portray the target as an ambitious step forward, “but the reality is we are fast running out of room to achieve the Paris agreement.” He added, “This target is in line neither with climate science nor with climate justice.”

Thomas Gelin, a Campaigner at Greenpeace EU, said that the EU had a historical responsibility to cut emissions at home.

He noted that the EU’s 2040 climate targets should drive a shift away from fossil fuels.

“Instead, the European Commission relies on dodgy accounting and offshore carbon laundering to pretend to hit the lower bound of what its climate scientists advise.”
Thomas Gelin

Some industry groups were also dismayed by the proposal. The European federation of industrial energy consumers (IFIEC) said that it supported the goal of climate neutrality by 2050 but found the proposed 90% target “a disproportionate and unrealistic” acceleration of the ambition.

“An overly steep reduction curve ignores this reality and runs the risk of accelerating de-industrialisation in Europe and massively importing CO₂ emissions.”
Hans Grünfeld, President of IFIEC

The target would need to be agreed by member states and passed by the EU parliament before being translated into a target for 2035 under UN climate treaties.

The EU has to submit a new climate action plan before CoP30 in Brazil in November.