The European Union approved on Thursday a binding target to reduce net greenhouse gas emissions by 90% by 2040 compared to 1990 levels.

The EU Council announced that member state representatives formally endorsed the bloc's 2040 climate target, agreeing to amend the European Climate Law to enshrine the 90% reduction target.

The announcement noted that this final step in the legislative process strengthens the EU's path toward achieving climate neutrality by 2050 across all sectors of the economy.

From 2036 onward, member states will be permitted to use high-quality international carbon credits of up to 5% of 1990 EU net emissions toward the 2040 target, meaning at least 85% of reductions must be achieved within the EU.

The announcement also stated that various flexibilities will be offered to member states to safeguard the EU's competitiveness and ensure a balanced transition. Credits must come from verified emissions reduction activities carried out in partner countries and remain consistent with the Paris Agreement's objectives.

The EU currently targets a 55% reduction in greenhouse gas emissions by 2030 compared to 1990 levels, and aims to achieve net-zero emissions and full climate neutrality by 2050.