The European Union has reached a provisional political agreement between the Council and the European Parliament to amend the EU Climate Law by setting a binding 2040 target of reducing net greenhouse gas emissions by 90% (85% actual domestic emissions + 5% from international carbon credits) compared with 1990 levels, a key intermediate milestone on the path to achieving climate neutrality by 2050. The deal includes a framework of flexibilities for member states and introduces mechanisms such as allowing high-quality international carbon credits to contribute up to 5% of the target from 2036, while also postponing the launch of the ETS2 (covering buildings and road transport) until 2028 and building in periodic reviews to assess progress and competitiveness.

However, civil society and climate watchdogs are raising concerns that the headline 90% goal on paper masks significant loopholes that could weaken real domestic action. Critics argue that reliance on international carbon credits and other flexibilities effectively lowers the actual domestic emissions cut to around 85%, shifting part of the burden abroad and undermining scientific advice on how the EU should tackle climate change. They warn that this dilution of ambition might jeopardize the EU’s credibility and climate leadership unless future legislation tightens these provisions.