The European Commission proposed amending the EU Climate Law to set a 2040 target of a 90% reduction in net greenhouse gas (GHG) emissions from 1990 levels.

The European Commission has proposed a legally binding EU climate target for 2040 to cut net greenhouse gas emissions by 90% from 1990 levels by 2 July 2025.

The EU is well on track to meet the 2030 target of 55%. The latest proposal builds on the EU’s existing legally binding goal of reducing net GHG emissions by at least 55% by 2030, and sets out a more pragmatic and flexible way to reach the target, with a view towards a decarbonised European economy by 2050.

For the first time, the proposal allows countries to use carbon credits from developing nations to meet up to 3% of the target, starting in 2036.  Next year, the EU plans to introduce legislation outlining the quality standards these credits must meet and the regulations governing their purchasers.

Aligned with the EU Competitiveness Compass, Clean Industrial Deal, and Affordable Energy Action Plan, the proposed 2040 climate target takes fully into account the current economic, security, and geopolitical landscape and gives investors and businesses the predictability and stability they need in the EU’s clean energy transition. By staying the course on decarbonisation, the EU will drive investment in innovation, create more jobs, growth, increase our resilience to the impacts of climate change, and become more energy independent.

EU Commission President, Ursula von der Leyen, said, “As European citizens increasingly feel the impact of climate change, they expect Europe to act. Industry and investors look to us to set a predictable direction of travel. Today, we show that we stand firmly by our commitment to decarbonise the European economy by 2050. The goal is clear, the journey is pragmatic and realistic.”

However, in response to opposition from governments such as France, Germany, Italy, Poland, and the Czech Republic, the Commission also suggested adjustments to ease the 90% emissions target for European industries. This flexibility aims to reduce the burden on domestic industries but has drawn criticism for potentially diverting investments from local efforts.

The EU boasts some of the world’s most ambitious climate goals, but its emissions targets to date have relied solely on domestic reductions.

The European Parliament and EU countries must approve the plan. Some nations, like Poland, oppose it, calling it “unrealistic,” while other member states, like Finland, support it.

The Commission’s proposal allows countries greater flexibility in determining which sectors contribute to the 2040 goal. For instance, if their forests face challenges absorbing sufficient CO2, they could offset this by accelerating emissions reductions in the transportation sector.

The EU must also submit a 2035 climate target to the UN by mid-September, derived from the 2040 goal.