MEPs have backed amendments to the EU Climate Law by 413 votes to 226 and 12 abstentions, to include a new, intermediate and binding 2040 EU climate target of reducing net greenhouse gas emissions by 90 per cent compared to 1990 levels.

The revised climate law introduces flexibilities in how the 2040-target can be met. From 2036, up to five per cent of net emissions reductions (two more than proposed by the Commission) can come from high-quality international carbon credits from partner countries. MEPs included safeguards to prevent the funding of projects contrary to the strategic interests of the EU.

The text also includes the possibility for domestic permanent carbon removals to be used to compensate for hard-to-abate emissions in the ETS as well as enhanced flexibility within and across sectors and instruments to achieve targets as cost effective as possible, as the green transition and improving EU competitiveness should go hand in hand.

The introduction of the EU’s ETS2 is also postponed by one year, from 2027 to 2028. ETS2 will cover CO2 emissions from fuel combustion in buildings and road transport.

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