In July 2025, the European Commission proposed a major Amendment to the European Climate Law, introducing a legally binding target to reduce net greenhouse gas (GHG) emissions by 90% by 2040, compared to 1990 levels.
This update builds on the EU’s existing commitment to climate neutrality by 2050 and serves as a critical milestone between the current 2030 target (55% reduction) and the long-term net-zero goal.
Key objectives
- Provide certainty for investors and industry
- Strengthen EU energy security
- Align with broader EU strategies like the Clean Industrial Deal, Competitiveness Compass, and Affordable Energy Action Plan
Flexibility & fairness
The proposal introduces several mechanisms to ensure a pragmatic and socially fair transition:
- Limited use of international carbon credits (up to 3%) starting in 2036
- Integration of permanent carbon removals within the EU Emissions Trading System (EU ETS)
- Cross-sectoral flexibility, allowing Member States to balance emissions across sectors (e.g., offsetting underperformance in land use with overachievement in transport or waste)
Monitoring & governance
A new monitoring and review mechanism will track progress toward the 2040 target and allow for policy adjustments as needed. The proposal also emphasizes social equity, ensuring that the costs and benefits of climate action are shared fairly across Member States and populations
Next steps
The amendment is currently under discussion by the European Parliament and the Council of the EU. Once adopted, it will:
- Guide future EU climate policy
- Shape the EU’s 2035 climate pledge ahead of COP30
- Influence investment and industrial planning across Europe