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The European Union sealed a deal in late 2025 for a legally binding 2040 climate goal: reducing net greenhouse gas emissions by 90% below 1990 levels, a target that allows up to 5% of cuts to come from high-quality international carbon credits, effectively requiring an 85% domestic reduction. This agreement, reached by member states and the European Parliament, provides long-term clarity for industry, though it's seen by some as less ambitious than scientific advice, balancing competitiveness with climate action for the path to net-zero by 2050.