The European Commission has proposed an amendment to the EU Climate Law that would make a 90% reduction in net greenhouse-gas emissions by 2040, compared with 1990 levels, legally binding. The target is billed as a midpoint on the path to climate neutrality in 2050 and follows the bloc’s existing commitment to cut emissions 55% by 2030. For the first time, Brussels would allow member states to rely on carbon credits generated in developing nations to meet part of the goal. Up to three percentage points of the 2040 target could be covered with internationally certified offsets from 2036, provided they meet “high-integrity” standards the Commission plans to spell out later this year. The change is aimed at easing pressure on energy-intensive industries facing high power costs and foreign tariffs. The flexibilities were added after France, Germany, Italy, Poland and the Czech Republic warned that stricter rules could hurt competitiveness. Finland and several Nordic governments welcomed the proposal, but the EU’s Scientific Advisory Board and environmental groups argued that outsourcing emissions cuts risks diluting the plan’s credibility. An impact assessment accompanying the draft says at least 87% of the reduction must still be delivered within the bloc, and that the 2040 benchmark will be used to derive the EU’s new 2035 nationally determined contribution to be filed with the United Nations by mid-September. The proposal now moves to the European Parliament and the Council, with negotiators aiming to finalise the law ahead of the COP31 climate summit in Brazil next November.