EU plans to allow carbon credits for countries to achieve 2040 climate goal

The European Commission plans to propose counting carbon credits from other countries towards the EU's 2040 climate target. The legally binding target is set for July 2, and the goal may be more flexible than the initially proposed 90% emissions cut from 1990 levels due to concerns from Italy, Poland, and the Czech Republic about costs.

The EU could use "high-quality international credits" to meet 3% of emissions cuts starting in 2036. This initiative aims to reduce the burden on European industries while still raising funds for CO2 reduction projects abroad. However, past scandals have raised concerns about the effectiveness of some credits.

Additional flexibilities will be included to address resistance from governments and industries wary of ambitious regulations. The final target will be negotiated by EU countries and the European Parliament.