The European Commission has today presented its long-awaited proposal for a climate target for 2040: a 90 percent reduction in greenhouse gas emissions compared to 1990. Politically, it is an important step to be able to bring together member states broadly around a proposal within the recommendation. But from a climate perspective, it is insufficient – ​​especially with the possibility that countries can meet the target partly through the purchase of climate credits.

“The 90 percent reduction target by 2040 is an important step forward, but still not enough. It is at the low end of the recommended level. The EU should aim for 95 percent to ensure sufficient climate action and at the same time strengthen its competitiveness and energy security. When the goal can also be met with climate credits, we risk postponing a real and fair transition,” says Britt Dam, climate and energy advisor at the Green Transition Denmark

The Danish Green Transition Denmark recommends a target of at least 95 percent without the use of climate credits and with a linear reduction path towards 2040. With the necessary political will, it is both technologically and economically possible.

An ambitious 95 percent target will not only put the EU on course for the necessary climate neutrality as early as 2045 – it will also strengthen the EU's competitiveness and reduce its dependence on imported fossil fuels.

This is supported by the EU's own climate science advisors (ESABCC), who assess that early, national transition is both realistic and beneficial for the EU's economy, innovation and geopolitical leverage. At the same time, they warn that the use of climate credits will have a negative impact on the EU itself, as well as undermine the fairness of the EU's contribution.

The EU has everything to gain from leading the way
A 95 percent target would strengthen security of supply, reduce energy bills and increase investment in future technology. According to the Green Transition Council's analysis, the target can be achieved through massive scaling up of solar and wind, electrification of transport, industry and heating, and energy efficiency. This would make the EU independent of fossil fuel imports to an annual value of 350 billion euros.

At the same time, a new report from the European Environment Agency (EEA) shows that a rapid expansion of renewable energy and electrification can save up to 57 percent on citizens' energy bills as early as 2030. There are thus major economic benefits to be reaped from an ambitious climate and energy policy.

Therefore, the Green Transition Council calls on the Commission and the Member States to raise ambition and reject climate credits.. A rapid and deep transition is needed to meet the limited European CO₂ budget. A target of at least 95 percent will make the EU a stronger global actor – both climate-wise and geopolitically.