In order to reflect the European Council’s conclusions on the EU’s 2040 emissions reduction target (see EUROPE 13737/3), the Danish Presidency of the EU Council distributed an initial compromise proposal to national delegations on Saturday 25 October ahead of the extraordinary ‘Environment’ Council on 4 November (see EUROPE 13728/9).
This new document, obtained by Agence Europe, no longer mentions a possible “limited” contribution from international carbon credits, but rather an “adequate” contribution to the objective of reducing greenhouse gas emissions by 90% by 2040 (compared to 1990). In addition, the European Commission’s proposal that these funds should contribute 3% of the target remains in brackets, as does the date of the start of use of international credits.
The change at the end of the European Council not only makes it clear that recourse to these credits is essential if environment ministers are to reach an agreement on 4 November, but also that this percentage could possibly be increased.
These “high-quality” credits are defined in Article 6 of the Paris Climate Agreement and allow the financing of decarbonisation projects abroad to be counted as part of domestic efforts.
Carbon sinks. In addition, the Danish Presidency’s new document takes account of the Member States’ request to take “realistic” account of the contribution of carbon absorption to the overall effort to reduce emissions. This should be done “while taking into account the uncertainties of natural removals and ensuring that possible shortfalls would not be at the expense of other economic sectors”.
Biennial assessment. A point was then added to request that, starting one year after the adoption of the Regulation, the Commission “biennially assess and report on the implementation of the intermediate targets and decarbonisation trajectories set out in this Regulation”.
This assessment will have to be carried out “taking into account the latest scientific evidence, technological advances and evolving challenges to and opportunities for the EU’s global competitiveness”, thus repeating the words of the European Council conclusions of 23 October.
Amended revision clause. In addition, the Danish Presidency of the EU Council is proposing to amend the existing review clause in the European Climate Law to take account of the indications formulated by the European Council.
After a postponement to allow European leaders to discuss the 2040 target, the Danish Presidency of the EU Council hopes to finally bring the negotiations to a successful conclusion at ministerial level, just before the official start of COP30 in Belém (Brazil), on 10 November (see EUROPE 13738/2).
To see the compromise: https://aeur.eu/f/j60 (Original version in French by Pauline Denys)