EU Proposes 90% Emissions Cut by 2040 Under Amended Climate Law

julio 4, 2025

10:28 am

Key Impact Points:

New 2040 Target: The European Commission proposes a 90% net GHG emissions reduction by 2040, compared to 1990 levels.
Industry Certainty: Framework introduces flexibilities for sectors and investors, reinforcing clean tech and competitiveness.
Global Signal: Plan aligns EU with Paris Agreement and sets stage for COP30 in Brazil.

EU Charts a Realistic Course to Climate Neutrality

The European Commission has proposed a major amendment to the EU Climate Law, introducing a legally binding 2040 target of reducing net greenhouse gas emissions by 90% compared to 1990 levels. The proposal builds on the existing 2030 target of 55% and is part of the bloc’s wider commitment to full climate neutrality by 2050.

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 European economy by 2050. The goal is clear, the journey is pragmatic and realistic.”

Flexibility and Fairness in Achieving the Target

Informed by consultations with EU member states, citizens, civil society, and science bodies including the IPCC, the proposal takes a more flexible and cost-effective approach. It allows limited use of international carbon credits starting in 2036, integrates domestic carbon removals into the EU ETS, and permits cross-sectoral balancing—for example, letting success in waste and transport offset underperformance in land use.

The approach prioritizes fairness, simplicity, and cost-effectiveness, with consideration for national contexts and industrial realities.

Clean Industrial Deal Gains Momentum

The Commission also issued its first delivery update on the Clean Industrial Deal, a key pillar of the EU’s competitiveness and decarbonisation agenda. Measures include:

Clean Industrial Deal State Aid Framework, adopted last week, to boost clean energy investment.
Simplification of the Carbon Border Adjustment Mechanism (CBAM), exempting 90% of importers to reduce administrative burdens.
New tax incentive recommendations, like accelerated depreciation and credits, to stimulate industrial decarbonisation.
Upcoming initiatives such as the Chemicals Industry Action Plan, Industrial Decarbonisation Bank pilot, and future budget alignment under the Multiannual Financial Framework.

A Signal to the World Ahead of COP30

The 90% target strengthens the EU’s position ahead of COP30 in Belém, Brazil, reaffirming its leadership in meeting the Paris Agreement goals. It also initiates steps for finalizing the EU’s updated Nationally Determined Contribution (NDC).

What’s Next?

The proposal will be submitted to the European Parliament and Council under the ordinary legislative procedure. Once adopted, the 2040 target will anchor the EU’s post-2030 climate and energy policy framework.

Context: The Legal Foundation

The European Climate Law, enacted in July 2021, mandates climate neutrality by 2050 and set the 2030 emissions reduction target at 55%. The law also requires a 2040 intermediate target, to be proposed within six months of the first Global Stocktake under the Paris Agreement—finalized in December 2023.

The EU is currently on track to meet its 2030 goals, according to the Commission’s May 2025 assessment of National Energy and Climate Plans.