The EU Council has formally adopted the amended European climate law, introducing a binding intermediate climate target by 2040 of a 90% reduction in net greenhouse gas (GHG) emissions compared to 1990 levels.
“Today’s adoption of the landmark 2040 climate target will give industry, citizens and investors the reassurance they need for the clean transition in the decade ahea,” said Cyprus’ environment minister Maria Panayiotou, for the EU presidency.
The EU goal is to achieve climate neutrality by 2050 across all sectors of the economy. From 2036 onwards, high-quality international credits may be used up to a limit of 5% of 1990 EU net emissions to make an adequate contribution towards the 2040 target in a way that is both ambitious and cost-efficient. This means that at least 85% of emissions reductions must be achieved within the EU. Credits must be based on credible activities of GHG reduction in partner countries, in line with the Paris agreement.
The amended climate law sets out further key elements the Commission must consider when preparing its legislative proposals for the post-2030 period, with a focus on competitiveness, simplification, social fairness, energy security and affordability, alongside other priorities.
Among these elements are:
- EU-based permanent carbon removals (processes that involve capturing carbon dioxide from the atmosphere and storing it durably) to compensate for residual hard-to-abate emissions under the EU emissions trading system
- enhanced flexibility within and across sectors and instruments, to support the achievement of targets in a simple and cost-effective way
The amended climate law also shifts the date for the EU emissions trading system for road transport, buildings and other sectors (ETS2) to become fully operational by one year, moving it from 2027 to 2028.
This adoption marks the final step in the EU legislative process. The amended regulation will enter into force 20 days after its publication in the Official Journal of the European Union and will apply directly in all EU countries.
The Commission has to make relevant proposals to implement the binding EU 2040 climate target.
