EU’s deal on 90% emission cut by 2040 peppered with foreign carbon credit flexibilities

Published on : 07 Nov 2025, 11:07 am Summary

The EU has reached a compromise on its 2040 climate target, setting a 90 per cent emissions reduction goal from 1990 levels.

However, the deal allows for up to 5 per cent of this reduction to be achieved through foreign carbon credits, effectively lowering domestic efforts to 85 per cent.

This decision reflects a balance between economic pressures and environmental commitments.

European Union climate ministers have reached a long-delayed decision on the bloc’s 2040 emissions target after an all-night negotiation session in Brussels. The deal, concluded early on November 5, 2025, set a 90 per cent reduction goal from 1990 levels, but allowed new flexibilities that can reduce domestic carbon emission reduction.

The agreement permitted E