European Union countries agreed a new climate change target for the bloc on Friday after haggling through the night in Brussels, pulling the political trigger on a policy revamp to make every sector greener.

The head of the European Council said the EU was ready to help countries achieve climate targets agreed by EU leaders on Friday but declined to comment on assurances given to Poland and other nations worried about the costs of the green transition.

The deal reached by European Union leaders in the early hours of Friday to cut net emissions at least 55% by 2030 is a step for the bloc towards having zero net emissions in 2050, the head of the European Commission said.

A deal reached by European Union leaders in the early hours of Friday to cut EU net greenhouse gas emissions at least 55% by 2030 makes credible the more ambitious target of having zero net emissions by 2050, the head of the European Council said.

Australia on Friday said it would achieve its 2030 carbon emissions pledge under the Paris climate agreement without counting carbon credits from overachieving on its previous climate targets, marking a sharp change of policy.

Australia was committed to achieving net zero carbon emissions "as soon as possible" and the country would achieve its 2030 targets without the need to draw carry over old credits, Prime Minister Scott Morrison said.

European Union leaders on Friday reached a deal on a more ambitious target to cut greenhouse gas emissions this decade, European Council President Charles Michel said, after all-night talks on the goal at a summit he chaired.

Hydrogen has taken off this year as the future green fuel of choice, with governments and businesses betting big that the universe's most abundant element can help fight climate change.

A group of 30 asset managers with more than $9 trillion under management launched the Net Zero Asset Managers Initiative on Friday to help clients ensure their portfolios are carbon neutral by 2050.

European Union leaders unblocked on Thursday a 1.8 trillion euro financial package to help the economy recover from the pandemic-induced recession after reaching a compromise with Poland and Hungary, the chairman of EU leaders Charles Michel said.