CLECAT — 2026-02-13
News from Brussels
The European Parliament has formally approved the interinstitutional agreement on the EU’s 2040 climate target, endorsing the deal reached with Member States, on 10 February. The agreement sets a binding objective of reducing the EU’s net greenhouse gas emissions by 90% by 2040 compared to 1990 levels. It also postpones the launch of the new emissions trading system for road transport and buildings (ETS2) to 2028.
Under the compromise, the EU will be allowed to make limited use of international carbon credits from 2036 onwards. Their contribution will be capped at 5% of the EU’s 1990 net emission levels. This flexibility was a key element in securing agreement among Member States, while maintaining the overall ambition of the 90% reduction target.
European Commissioner for Enlargement, Marta Kos, did not fully exclude the possibility that such international credits could eventually be integrated into the EU Emissions Trading System (ETS), as advocated by some Member States. However, she underlined the need to safeguard the stability of the ETS. The issue of international credits remains politically sensitive. During Phase III of the EU ETS (2013–2020), industries were allowed to purchase international carbon credits, which contributed to a significant drop in the carbon price. This in turn weakened the incentive to invest in decarbonisation.
The agreement is now expected to be formally endorsed by Member States on 5 March, following prior approval at deputy ambassador level (Coreper I).