Following all-night negotiations in Brussels that ended at 4.30am, Thomas Schoos, adviser at Luxembourg's Ministry of the Environment, said the EU's new agreement to cut greenhouse gas emissions by 90% by 2040 was a technically complex but significant achievement.
Schoos noted that many countries pushed for flexibility in order to make the decarbonisation targets achievable. One of the most contentious points was the ETS2 carbon trading system, which covers emissions from heating fuels and road transport. For many Central and Eastern European countries, where households still rely heavily on coal and gas, this mechanism would have led to significantly higher costs. To bring Poland on board, negotiators agreed to delay ETS2 by one year, starting in 2028 instead of 2027.
Schoos added that Italy had pressed for flexibility regarding the use of biofuels and synthetic e-fuels, given its reliance on heavy transport and concerns about the impact on local industry.
While describing the final deal as "something of a Swiss cheese" due to its many exceptions and compromises, Schoos said the outcome should not be seen as a failure, emphasising that the European Union is not becoming a laughing stock because of this compromise. The result, he said, offers predictability and a clear framework for businesses, while reaffirming that green growth is essential for a sustainable future. According to Schoos, it also allows the EU to present itself confidently at next week's COP30 summit in Brazil.
A conference of implementation
Looking ahead to COP30, Schoos said he expects it to be a "conference focused on implementation", focusing less on new pledges and more on delivering concrete results. He acknowledged that the current geopolitical climate has made multilateral negotiations more difficult, citing the wavering engagement of the US. Still, Schoos stressed that the multilateral process remains vital, describing it as a proven success model.
For Luxembourg and the EU, he said, maintaining this framework is crucial to avoid acting in isolation. The goal now is to identify constructive partners rather than to push for sweeping global plans.
On climate finance, Schoos was asked whether Luxembourg supports measures such as higher taxes on fossil fuels, levies on the ultra-wealthy, or taxes on multinationals. He described the issue as complex, pointing out that the Environment Ministry does not have direct authority over tax policy. However, he said Luxembourg is now focusing on targeted and effective investments rather than simply contributing funds to international pledges.
Schoos added that they are looking at how Luxembourg's financial sector can play a greater role in climate financing and how the transition can open new economic opportunities. He described Luxembourg as one of the few countries continuing consistently with its climate policy without hitting the brakes, calling this persistence both a strength and an opportunity for Luxembourg to deepen partnerships and strengthen its international position.
