The Council presidency and European Parliament negotiators have reached a provisional agreement to amend the European Climate Law and set a binding intermediate climate target for 2040 of a 90% reduction in net greenhouse gas emissions compared to 1990 levels.

The agreement outlines a set of flexibilities to support delivery of the 2040 target and identifies elements to be reflected in future legislation, including the contribution of high-quality international carbon credits, the role of domestic permanent carbon removals under the EU ETS, and the possibility of flexibilities across sectors and instruments. The co-legislators also agreed to postpone the entry into application of the EU Emissions Trading System for buildings and r