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EU proposes 90 percent emissions cut by 2040; international offsets allowed

By Eleonora Rinaldi ( July 2, 2025, 11:12 GMT | Insight) -- The EU should reduce its net greenhouse gas emissions 90 percent by 2040, according to a legislative proposal presented today. Starting in 2036, international carbon credits can be used to account for up to 3 percent of emissions cuts. For residual emissions from hard-to-abate sectors, permanent carbon removals will also be included in the EU Emissions Trading System. The proposal follows intense negotiations with EU capitals to soften the target.EU member states are expected to cut their net emissions 90 percent by 2040 compared to 1990 levels, under the proposal published today (see here). From 2036 onward, member states may use international credits to cover up to 3 percent of their emissions, the European Commission said....

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