The European Commission has put forward its long-awaited amendment to the EU Climate Law setting a 2040 EU climate target of 90 per cent eduction in net greenhouse gas emissions, compared to 1990 levels.
The plan gives industry and Member States a clear direction and supports their investment plans, while ensuring that Europe stays firmly on track to reach climate neutrality by 2050, said the EU’s Climate Commissioner Wopke Hoekstra: “…it gives industry and Member States a clear direction and supports their investment plans, while ensuring that Europe stays firmly on track to reach climate neutrality by 2050.”
The Commission proposal is based on an in-depth impact assessment and advice from the Intergovernmental Panel of Climate Change and the European Scientific Advisory Board on Climate Change. It sets out a more ‘pragmatic and flexible’ way to reach the target, with a view towards a decarbonised European economy by 2050.
A central element is the concept of ‘flexibilities’ that the Commission will consider in designing the future legislative instruments to achieve its 2040 climate target. These include a limited role for high-quality international credits starting from 2036, the use of domestic permanent removals in the EU Emissions Trading System (EU ETS), and greater flexibilities across sectors to help achieve targets in a cost-effective and socially fair way. Specifically, this could give a Member State the possibility to compensate for the struggling land use sector with an overachievement on reducing emissions on waste and transport.
The proposal emphasises the importance of accelerating and strengthening the right enabling conditions to support this 90% target. These include a competitive European industry, a fair transition that leaves no one behind, and a level playing field with the EU’s international partners.
The proposal sets a clear frame for the EU’s post-2030 climate and energy legislation. National specificities will be taken into account. Cost-effectiveness, simplicity and efficiency will be guiding principles, says the Commission, together with ensuring technological neutrality and a transition that is ‘fair and just for everybody’.
The Commission has published a Communication on delivering the first proposals on the Clean Industrial Deal, only a few months after it was presented. This provides an overview of the first wave of actions delivered, progress made and remaining measures to come.
A key delivery is the Clean Industrial Deal State Aid Framework, adopted last week, to further support investment in the clean energy transition. The simplification of the Carbon Border Adjustment Mechanism (CBAM) was also agreed, exempting 90% of importers, thus reducing red tape and ensuring smooth implementation. This simplification is the first step before a more general CBAM review at the end of the year, accompanied by legislative proposals to strengthen the mechanism. The Communication outlines the results of the Commission analysis on how to provide a solution to the export carbon leakage.
The EU executive has also issued a Recommendation on Tax Incentives to encourage investments in clean technologies and industrial decarbonisation, through measures like accelerated depreciation and tax credits.
The Commission’s proposal setting a 2040 climate target will now be submitted to the European Parliament and the Council for discussion and adoption under the ordinary legislative procedure.
Proposal for a 2040 EU climate target
European Climate Law – policy page
Commission recommendation on the 2040 EU climate target
