More flexibility in carbon dioxide emissions and a later start of emissions trading for transport and buildings - this is what the EU's climate targets for 2040 look like.
Just before the World Climate Conference in Brazil, EU environment ministers set climate targets for 2040. They are more modest than those proposed by the European Commission, but the EU was under pressure to present its intentions at the conference in Brazil, writes ARD.
Greenhouse gas emissions must be reduced by 90 percent compared to 1990. To this end, up to five percent must be saved from 2031 onwards by purchasing certificates in third countries. That is, the EU itself must reduce its emissions by 85 percent.
In addition, the start of emissions trading for the transport and buildings sectors was postponed by one year to 2028, as some countries have concerns about rising fuel prices. In emissions trading, companies must prove that they have the rights to emit greenhouse gases. In principle, this should also apply to fuels from 2027.
France and Portugal prevailed
The EU already had climate targets for 2030 and 2050, but not for 2040. Therefore, in July, the EC proposed, based on scientific research, to reduce emissions by 90 percent over the next 15 years compared to 1990. The reduction in climate targets is due to the concerns of some countries that higher investments in environmental protection will burden the economy and consumers too much.
Initially, the EC had proposed selling a maximum of three percent of the certificates to third countries from 2036, but in the end an agreement was reached for five percent - mainly at the request of France and Portugal. Poland and Italy wanted the percentage to be ten, notes ARD. Before the targets set for 2040 come into force, the European Parliament must also give its opinion.
What will be the impact on investments?
Until now, the EU had to achieve its climate goals by reducing harmful emissions on its territory. Thanks to climate certificates for third countries (outside the EU), emissions will now be compensated. For example, it should be possible to buy emission credits for projects that store or absorb carbon dioxide from the atmosphere and add them to reductions within the EU, explains the ARD.
EU climate advisers have warned that buying foreign carbon certificates would take away funds that are urgently needed for European industry. Countries such as the Netherlands, Spain and Sweden have pleaded for more ambitious targets, citing extreme weather events as well as the need to develop green technologies.