Summary: EU governments postponed agreement on a legally binding 2040 climate target—a 90% net emissions cut from 1990—amid disputes over how much could be met with foreign carbon credits. The delay risks missing a mid‑September UN submissions window ahead of COP30.
What happened
Diplomats said support and opposition now cut across the usual blocs: Denmark, Spain, and the Netherlands push to seal the target; France, Poland, and Italy want leaders to take it up in October. Germany backs the goal but prefers leaders hash out details first.
Why it matters
- Policy signal: Without a 2040 anchor, industry planning for steel, cement, power, and autos gets murkier; investors will demand clarity on carbon pricing and subsidies.
- Offsets tug‑of‑war: Credits can lower immediate costs but risk greenwashing if not tightly governed.
Key facts
- Proposed target: −90% by 2040 vs 1990.
- Commission floated 3% credits from 2036; still contested.
- UN deadline pressure ahead of COP30.
What to watch
Whether October leaders’ talks yield a compromise on credits and sectoral pathways—and how that cascades into national energy and industrial plans.