The ministers agreed that the EU must still formally emit 90 percent less greenhouse gases in 2040 than in 1990, as proposed by Climate Commissioner Wopke Hoekstra. But the 27 EU countries may achieve up to five percent of that reduction through so-called carbon credits in non-EU countries.
As the EU countries plan to spend hundreds of billions of euros extra in the coming years to kickstart a European Defense industry, and also want to strengthen the European economy, investments in climate, environment, and sustainability are increasingly being foregone in the EU countries.
The weakened CO2 agreement also stipulates that an additional five percent can later be offset if it turns out countries do not meet their domestic targets. This can reduce the actual reduction on European soil to 80 percent.
The commitment serves as a guideline but is not legally binding. It is intended as a political roadmap for the next five years, until the European Parliament and the Council decide on legislation. Several countries, including Hungary, Poland, and Italy, oppose binding obligations.
Southern and Eastern European countries pushed for more room to avoid economic damage. The Netherlands, Spain, and Sweden advocated maintaining the original ambition, fearing Europe would otherwise lose its climate leadership.
Part of the compromise is also a delay of the ETS II system, the new CO2 charge for cars and buildings. That measure will be postponed by at least a year, officially to give citizens and businesses more time to adjust.
Scientists warn that the broader use of carbon credits undermines the credibility of European climate policy. They point out that the promised emission reductions abroad are difficult to verify and often prove less effective.
Still, Commissioner Hoekstra calls the agreement “an important step forward,” although he acknowledged it is not a perfect result. According to those involved, the EU had to be able to present an agreement at the upcoming UN Climate Summit in Brazil to avoid international loss of face.