European Union countries have agreed to reduce greenhouse gas emissions by at least 90 per cent by 2040 compared to 1990 levels, including the five per cent achievable from international offsets.

Danish climate minister Lars Aagaard said this on Wednesday.

Mr Aagaard said that under the plans, investments in countries outside the EU, such as extracting climate-damaging emissions from the atmosphere, could be converted into carbon credits and counted as domestic reductions.

He stated that the credit system would be rolled out from 2031 and fully implemented by 2036, according to EU environment ministers, following lengthy negotiations.

“Plans to include the buildings and the road transport sectors in the EU’s emissions trading scheme are to be pushed back by one year to 2028 under the compromise,” he said.

Mr Aagaard added that the 2040 climate target would be reviewed periodically.

He said that the concessions were made to put an end to more than 15 hours of negotiations and to overcome a deadlock.

Several EU countries had struggled to back new reduction commitments amid economic concerns and geopolitical changes.

“We worked through the day yesterday and night to achieve an agreement. It has not been easy.

“We all agree that Europe must stay competitive while we are lowering our emissions.

“The new climate target is there to help us by providing the necessary predictability and investment security for European businesses,” Mr Aagaard said.

A double majority of at least 15 of the 27 EU member states, representing at least 65 per cent of the bloc’s population, was required for the decision to be passed.

Shortly before the vote, the ministers of Slovakia, Hungary, and Poland stated that they would vote against the compromise, with Bulgaria and Belgium abstaining.

The law is expected to be finalised through negotiations with the European Parliament in the coming months.

The breakthrough on the 2040 climate target paved the way for a separate reduction commitment required under the 2015 Paris Agreement, days before the start of the UN Climate Change Conference in Brazil.

The conference would also agree to the emissions reduction on Wednesday, EU officials said.

EU countries backed a binding target for a climate plan through 2035, aiming to cut emissions over the next 10 years by between 66.25 per cent and 72.5 per cent from 1990 levels.

(dpa/NAN)