EU agrees on climate target to cut emissions 90% by 2040, with 5% carbon credits

Dec 10 (Reuters) - The European Union agreed late on Tuesday on a legally binding climate target to reduce greenhouse gas emissions 90% by 2040, against 1990 levels, and buy foreign carbon credits to cover 5% of the emissions cuts, the European Parliament said in a statement early on Wednesday.

In practice, the target will require an 85% emissions cut from European industries, and let countries pay foreign countries to cut emissions on Europe's behalf to make up the rest from 2036.

The EU Parliament and EU countries must each give formal approval for the changes to become law, usually a formality that waves through pre-agreed deals.