Summary: After marathon negotiations in Brussels, EU environment ministers have agreed to cut greenhouse gas emissions by 90% by 2040 compared to 1990 levels. The deal, reached just ahead of the COP30 climate summit in Brazil, cements the bloc’s long-term climate trajectory but includes concessions allowing limited use of carbon offsets and delayed implementation of new carbon market rules.
The Agreement
Following more than 15 hours of talks, ministers endorsed a binding 90% reduction target for 2040, a key milestone on the EU’s path to net-zero emissions by 2050. The agreement will be enshrined in amendments to the European Climate Law and submitted to the United Nations as part of the EU’s updated climate pledge under the Paris Agreement Consilium.
The deal also sets an indicative 2035 reduction range of 66–72.5%, providing a mid-term benchmark for policymakers and industry Consilium.
Concessions and Caveats
To secure consensus among member states, negotiators introduced several flexibility measures:
- Up to 5% of the 2040 target may be met through international carbon offsets, allowing investments in projects outside the EU to count toward reductions Yahoo.
- The expansion of the EU Emissions Trading System (ETS) to cover buildings and road transport has been postponed until 2028, a year later than originally planned Yahoo.
- The target will be periodically reviewed, leaving scope for adjustments depending on technological progress and economic conditions.
These compromises were designed to balance the demands of more ambitious states such as Denmark and Germany with the concerns of coal-reliant economies including Poland.
Political and Economic Significance
The agreement positions the EU as a global climate leader ahead of COP30, where it will present its updated nationally determined contribution (NDC). Officials stressed that the 90% target is essential to keeping the bloc on track for climate neutrality by mid-century.
However, industry groups have warned of the economic costs of rapid decarbonisation, particularly for energy-intensive sectors. Ministers countered that the deal provides predictability for investors and will accelerate the rollout of clean technologies, from renewable energy to carbon capture.
Next Steps
The compromise will be formally adopted by the Council of the EU later this month, after which the European Commission will draft legislative proposals to implement the target. These will include sector-specific measures for energy, transport, agriculture, and industry.
The EU’s updated climate pledge will be presented at COP30 in Belém, Brazil (10–21 November 2025), where it is expected to influence global negotiations on mid-century climate goals.
In short: The EU has agreed to a 90% emissions reduction by 2040, a landmark step toward climate neutrality. Yet the inclusion of offsets and delayed carbon market reforms reflects the political compromises needed to secure unity across the bloc.
Sources: Council of the EU Press Release Consilium; Invezz Invezz; The Hindu Business Line The Hindu BusinessLine; Yahoo News Yahoo.
