EU proposes 90% emissions reduction target for 2040 – with flexibility to use carbon credits

The European Commission will seek to set a climate target of 90% emissions reduction by 2040 – with “greater flexibilities” to leverage carbon credits and removals.

Based on consultations with a wide array of stakeholders, the Commission decided to introduce for the first time the possibility to use international carbon credits that are “verifiable, certified and additional” for up to 3% of carbon reductions from 2036. “These international credits must come from credible and transformative activities, such as direct air carbon capture and storage (DACCS) and Bioenergy with carbon capture and storage (BioCCS) in partner countries whose climate targets and action align with the Paris Agreement temperature goal,” the Commission says in a Q&A about the new target.