The European Union has agreed to a legally binding climate target to cut emissions 90% by 2040, even as it pushes back a planned critical emissions trading scheme.
The European Parliament and EU Member States came to a provisional agreement on the target and an amendment of the EU Climate Law on Tuesday night.
“Today, the EU is showing our strong commitment to climate action and the Paris Agreement. One month after COP30, we have turned our words into action - with a legally binding target of 90% emissions reduction by 2040,” EU chief Ursula von der Leyen said in a statement announcing the deal on Wednesday.
She added that the agreement represents a “pragmatic and flexible plan” to make the clean transition more competitive.
“The fact that this new target is legally binding is commendable, as it cements the EU’s ambition to achieve net zero by 2050,” Hortense Bioy, who heads up sustainable investing research for Morningstar Sustainalytics, told CNBC.
