On July 2, 2025. The European Commission has proposed an amendment to the EU’s climate law with a target of 2040. This involves reducing net greenhouse gas emissions by 90 percent compared to 1990 levels, according to the European Commission’s policy guidelines for 2024-2029. The proposed changes are expected to provide certainty for investors, promote innovation, strengthen European companies’ leadership in the industrial sector and enhance Europe’s energy security.
General context
In December 2019. The European Council approved a target for the European Union to achieve climate neutrality by 2050, in line with the goals of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change.
On March 4, 2020. The European Commission adopted a legislative proposal for a European Climate Law as an essential component of the European Green Deal. As of November 29, 2021, the European Climate Law Regulation became applicable.
In 2023. The EU adopted a series of proposals known as the Fit for 55 package, which reviewed the policy instruments needed to achieve the 2030 climate target.
In February 2024, the EC presented a communication and a detailed impact assessment of the 2040 climate target-setting process for the EU, And in February of the following year, it proposed an amendment to the European Climate Law that would set a 2040 climate target.
EU efforts to reduce greenhouse gas emissions in a cost-effective manner are well under way. Between 1990 and 2019, greenhouse gas emissions were reduced by 24 percent, while the economy grew by 60 percent. An essential component of the EU’s climate policy is the emissions trading scheme established under Directive 2003/87/EC.
European climate law
The European climate law establishes a framework for achieving climate neutrality in the EU by 2050. It sets a target to achieve a reduction in EU net greenhouse gas emissions of at least 55 percent by 2030 compared to 1990 levels, and provides for setting a climate target for 2040 within six months of the first review under the Paris Agreement.
In addition, the regulation introduces provisions to ensure continued progress toward the global climate change adaptation goal established under the Paris Agreement. It also stipulates that the EU should strive to achieve negative emissions.
Study relating to climate targets
The European Union has so far adopted two EU-level reduction targets, i.e. the 2030 target (reducing emissions by at least 55 percent from 1990 levels) and the 2050 target (achieving climate neutrality).
The latest Eurobarometer survey, released on June 30, 2025, showed citizens’ support for EU climate action, giving a mandate to continue the clean transition program. The survey indicates that 85 percent of Community citizens view climate change as a serious problem, and 81 percent of them support the goal of achieving climate neutrality by 2050. Of those surveyed, 84 percent want to increase Europe’s competitiveness in clean technologies, and 75 percent believe that reducing fossil fuel imports will increase energy security and bring economic benefits to the EU.
More than three-fourths of respondents confirm that the cost of climate change damage outweighs the cost of transitioning to a neutral economy, while 88 percent support greater investment in renewables and energy efficiency.
According to the information presented in the study, the EU is on track to meet the 2030 target.
New proposals for climate targets
On July 2, 2025. The European Commission proposed an amendment to the European Climate Law, setting an EU target for 2040, with a goal of reducing net greenhouse gas emissions by 90 percent compared to 1990 levels.
The proposal supports the creation of appropriate conditions for the use of flexibility mechanisms. The continued pursuit of decarbonization of the economy is expected to provide the necessary predictability and stability for investment and to drive industrial competitiveness and the EU’s transition to clean energy.
The new climate target set at 90 percent is to be in line with the Clean Industrial Deal, the Competitiveness Compass and the Affordable Energy Action Plan.
At the international level, the EU has been required to update, ahead of the United Nations Climate Change Conference (COP 30) to be held in November 2025 in Brazil, the Nationally Determined Contribution (NDC) targets set under the Paris Agreement.
The new proposals met with opposition from France, Germany, Italy and Poland, among others, so the EC proposed solutions that would soften the consequences of the proposed changes. The proposals included the possibility of counting projects financed in third countries. In addition, the possibility of purchasing so-called carbon credits, which will allow member countries to balance their emissions. Carbon credits are to lead to the financing of green projects, such as tree planting, in third countries. Meanwhile, their introduction itself will be phased in from 2036.The EU is expected to propose legislation in 2026 to establish the criteria they must meet and rules for buyers.
The EC’s proposal of new climate targets for 2040 has been submitted to the European Parliament and the Council for discussion and adoption under the ordinary legislative procedure.
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