Climate, the EU Commission confirms the binding intermediate target of -90% emissions by 2040

By 2040, the European Union will have to reduce net greenhouse gas emissions by 90% compared to 1990 levels . This is what the European Commission officially proposes, which today announced the changes and updates to the European Climate Law of 2021 , already anticipated in recent days . The law provides for the achievement of climate neutrality by 2050 .

According to the Commission, this new interim target will provide more certainty to investors , stimulate innovation , strengthen European industrial leadership and increase the continent's energy security . Just these days, the latest Eurobarometer confirmed broad public support for EU climate action, thus providing a clear mandate to decisively continue along the path of the green transition .

The EU is currently on track to meet its 2030 target of -55% emissions , which is already binding under current legislation. The new proposal, however, introduces a more pragmatic and flexible approach, with a view to a fully decarbonised European economy by 2050 .

The 2040 target, which will now be discussed by the EU Parliament and Council, will serve as a benchmark for future climate and energy policies beyond 2030. Currently, the EU has already achieved a 37% reduction in emissions compared to 1990 (updated to 2023), while recording an economic growth of 68% over the same period. According to the Commission, this confirms the possibility of “ green growth ”.

The new target is the result of a broad consultation process , supported by a scientific impact assessment and contributions from the European Climate Change Advisory Board, Member States, the European Parliament, civil society and the business community.

According to the Commission, the approach to decarbonisation is now becoming “more pragmatic and flexible” . Three main innovations compared to previous objectives:

1. Limited use of international carbon credits (up to 3% of the target, starting in 2036), certified under Article 6 of the Paris Agreement.
2. Integrating permanent CO₂ removals into the EU ETS (Emissions Trading System), through technologies such as BioCCS and DACCS, with incentives for high-emitting, hard-to-abate industries.
3. Greater sectoral and national flexibility between 2030 and 2040: each State will be able to compensate for delays in some sectors (such as land use) with superior results in others (for example waste or transport).

“We want to give businesses the predictability they are asking for,” said Wopke Hoekstra , European Commissioner for Climate, “but also ensure that this transition is economically sensible, socially fair and technologically neutral.”

To achieve the new target, average annual investments of around €660 billion in the energy sector and €870 billion in transport will be needed (2031–2050). To enable these capital flows, the Commission has already introduced:

• the new Clean Industrial Deal and the related State aid framework (CISAF),
• an easing of the CBAM (Carbon Border Adjustment Mechanism) rules that exempts 90% of importers, reducing bureaucracy for SMEs,
• a proposal for tax incentives, including super-depreciation and tax credits for those who invest in clean technologies and industrial decarbonization.

According to Executive Vice President Teresa Ribera , the 90% target “is not a choice between the economy and the environment, but a commitment to both. We will build a modern, competitive and resilient economy”.

The new target fits into the EU's competitiveness compass and the Clean Industry Pact , which aims to strengthen strategic supply chains (such as solar, batteries, wind and geothermal) and increase the continent's energy independence.

The programme also includes: a new Bank for Industrial Decarbonisation , sectoral dialogues with industry and stakeholders, a Green Chemistry Action Plan and measures to encourage direct purchases of renewable energy between companies and producers.

“We need to build resilience and leave no one behind,” Ribera added, “also because 85% of European citizens recognize climate change as one of the main threats.”

With this proposal, the EU is sending a clear signal to the international community , ahead of the upcoming COP30 in Belém (Brazil) in November: Europe will stay on course to meet its commitments under the Paris Agreement and will work to reduce global emissions in collaboration with international partners.

The new target will be included in the next EU Nationally Determined Contribution (NDC) , which will be formally transmitted ahead of the conference.

“We are ambitious, pragmatic and flexible,” concluded Hoekstra, “we are charting the course for a stronger, more resilient, fairer Europe.”

The Commission proposal will now be submitted to the European Parliament and the Council for discussion and adoption under the ordinary legislative procedure.