Germany’s env min hails EU unity on 2040 climate target, but NGOs warn of loophole

The EU’s agreement on a binding 2040 target of reducing emissions by 90 percent is a major success for climate policy and industry, as it provides much-needed planning security for the next decade, Germany’s environment minister Carsten Schneider said. “The new EU climate target is probably the most significant climate policy decision of this term,” Schneider said, adding that it would compel Europe to stay the course on climate action.

“Germany’s economy in particular is going to benefit from this agreement, as it strengthens a joint approach throughout Europe,” Schneider argued. Achieving majority approval among member states and within the European Parliament would lend courage for addressing the next steps, the minister said. “Forward-looking climate action will make the EU more competitive,” he added.

Environmental NGO umbrella organisation DNR also welcomed the EU’s ability to take joint decisions on emissions reduction, but criticised key elements of the agreement. While it stipulates emissions reductions of 90 percent compared to 1990 levels, it also allows covering 5 percent with carbon credits from outside the EU.  “If it says European climate action on the label, there should also be European climate action inside,” said DNR head Kai Niebert.

Investing in carbon credits abroad would mean fewer investments in domestic emissions reduction, Niebert argued. “That’s something we cannot afford in the current situation.” To ensure that the loophole does not undermine domestic climate efforts, the European Commission must now ensure that clear criteria and binding rules safeguard effective emissions reduction. Crucially, foreign carbon credits must not be included in emissions trading, he added.

Environment agency UBA, meanwhile, sketched a path for Germany to reduce emissions by 90 percent by 2040 without relying on international carbon credits. “Greenhouse gas neutrality will be achieved by avoiding emissions in the first place,” said UBA head Dirk Messner. Quitting fossil fuels and expanding renewables are therefore central to the measures needed to make progress, he said, adding that the country’s Climate Action Programme expected in early 2026 would have to set the right tracks to reduce emissions across sectors, Messner argued.

The electrification of sectors, an expansion of grid capacity and flexibility, the rollout of decarbonised heating networks, and the development of green hydrogen would all offer ways to cut emissions while simultaneously investing in future industries. “Smart climate policy always also looks at competitiveness,” the UBA head added. “Germany and Europe can become pioneers of a strong, climate-neutral economy.”