Lawmakers in the European Parliament’s environment committee voted on Monday to back a landmark revision of the EU’s climate law, setting a binding target to cut greenhouse gas emissions by 90% by 2040 compared with 1990 levels. The vote, which passed with 55 in favour and 32 against, aligns with the agreement reached by EU member states on 5 November after months of political wrangling over how to balance climate ambition with industrial competitiveness.
The revised law retains the policy flexibilities sought by national governments but introduces tougher provisions on the use of international carbon credits. These credits allow countries and companies to offset emissions by investing in projects that reduce carbon output elsewhere, such as reforestation. Under the new text, up to 5% of the reduction target may be met using such credits, with another 5% potentially added after a future review if natural carbon removal within the EU proves insufficient.
Spanish MEP Javi López, who led the negotiations for the Socialists and Democrats (S&D), described the committee’s approval as a “clear signal” that Europe remains committed to climate leadership. “We have worked to ensure that the 2040 goal reflects ambition and social fairness,” López said. “The next step is to deliver the funding, tools and industrial strategy to make this transition a success.”
Dutch lawmaker Gerben-Jan Gerbrandy of Renew Europe said that only “minor changes” were made compared with the Council’s version, but those amendments were crucial for tightening oversight on carbon credits. The new text demands that all international credits be “high-quality” and “high-integrity,” reintroducing language that had been removed by EU governments earlier in negotiations.
According to the adopted document, any future use of global carbon credits must be subject to “robust safeguards ensuring integrity, avoidance of double counting, transparent governance, and strong monitoring, reporting and verification.” Lawmakers also urged the European Commission to apply stricter criteria than those defined in the Paris Agreement to ensure real emission reductions in partner countries.
German MEP Tiemo Wölken acknowledged that the deal fell short of the Socialists’ original ambitions but said it was “better than no deal.” He added that Parliament had shown “responsibility and unity in the face of climate scepticism and populism” and pledged to continue pushing for more investment in green jobs and protections for workers affected by the transition.
Austrian Green MEP Lena Schilling expressed disappointment over the inclusion of international carbon credits, calling them a “loophole” that weakens the bloc’s climate ambition. “If member states insist on using them, they must at least prove that these credits deliver real, verifiable climate impact,” she warned.
The agreement was jointly negotiated by the European People’s Party (EPP), the Socialists and Democrats, Renew Europe, and the Greens/EFA — a coalition representing a majority in Parliament. Their approval in the environment committee clears the way for the final plenary vote in Strasbourg on Thursday, where the law is expected to pass and solidify the EU’s path toward its 2040 emissions goal.
