The European Commission today proposed an amendment to the EU Climate Law, setting a 2040 EU climate target of 90% reduction in net greenhouse gas (GHG) emissions, compared to 1990 levels, as requested by the Commission Political Guidelines for 2024-2029. It will give certainty to investors, innovation, strengthen industrial leadership of our businesses, and increase Europe's energy security.

The EU is well on track to meet our 2030 target of 55%. Today's proposal builds on the EU's existing legally binding goal of reducing net GHG emissions by at least 55% by 2030, and sets out a more pragmatic and flexible way to reach the target, with a view towards a decarbonised European economy by 2050.

Aligned with the EU Competitiveness Compass, Clean Industrial Deal and Affordable Energy Action Plan, the proposed 2040 climate target takes fully into account the current economic, security and geopolitical landscape and gives investors and businesses the predictability and stability they need in the EU's clean energy transition.

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality

Brussels, 2.7.2025

COM(2025) 524 final

2025/0524 (COD)

Through the adoption of Regulation (EU) 2021/1119 of the European Parliament and of the Council5 , the Union has enshrined in legislation a binding objective of economy-wide climate neutrality by 2050, thus reducing emissions to net zero by that date, and the aim of achieving negative emissions thereafter, established a binding Union 2030 intermediate climate target and provided for the setting of a Union-wide intermediate climate target for 2040.

The Commission presented a recommended target of a 90% net greenhouse gas emission reduction compared to 1990 levels for 2040.

In order to achieve the 2040 climate target it is essential to, inter alia, fully implement the agreed 2030 framework, ensure and provide support to the competitiveness and resilience of the European industry, ensure transition pathways based on best available cost-effective, safe and scalable technologies, set a greater focus on a just transition that leaves no one behind, ensure fair competition with international partners, decarbonise the energy system with all zero and low carbon energy solutions (including renewables, nuclear, energy efficiency, storage, CCS, CCU, carbon removals, geothermal and hydro-energy, and all other current and future net-zero energy technologies).

With the Clean Industrial Deal, the EU is putting in place the conditions for a successful transition.

Priority should be given to domestic reductions in greenhouse gas emissions, complementing it by increased removals, including through both natural and technological solutions.

The Union has in place a regulatory framework to achieve the 2030 climate target. The legislation implementing that target consists, inter alia, of Directive 2003/87/EC, which establishes the EU ETS, Regulation (EU) 2018/842 of the European Parliament and of the Council , which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council9, which sets net carbon removal targets for the land use sector, Biogenic emissions Capture with Carbon Storage (BioCCS) and Direct Air Capture with Carbon Storage (DACCS)) in the EU ETS

Within the framework of the review referred to in the first subparagraph, in order to facilitate the achievement of the target set out in paragraph 3 of this Article, the Commission shall ensure that the following elements are appropriately reflected in the legislative proposals:

(a) Starting from 2036, a possible limited contribution towards the 2040 target of high-quality international credits under Article 6 of the Paris Agreement of 3% of 1990 EU net emissions supporting the EU and third countries in achieving net greenhouse gas reduction trajectories compatible with the Paris Agreement objective to hold the increase in the global average temperature to well below 2 °C and pursue efforts to limit the temperature increase to 1,5 °C above preindustrial levels - the origin, quality criteria and other conditions concerning the acquisition and use of any such credits shall be regulated in Union law; (

b) the role of domestic permanent removals under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors;

(c) enhanced flexibility across sectors, to support the achievement of targets in a cost-effective way;

(d) Member States post-2030 targets and efforts should reflect cost-efficiency and solidarity, in light of national circumstances;

(e) the best available and most recent scientific evidence, including the latest reports of the IPCC and the Advisory Board;

(f) the social, economic and environmental impacts;

(g) the costs of inaction and the benefits of action over mid-term to long-term;

(h) the need to ensure a just and socially fair transition for all;

(i) simplification, technology neutrality, cost-effectiveness, economic efficiency, and economic security;

(j) climate action as a driver for investment and innovation;

(k) the need to strengthen the global competitiveness of the Union’s economy, in particular small and medium-sized enterprises and industrial sectors most exposed to carbon leakage so as to ensure fair competition;

(l) best available cost-effective, safe and scalable technologies;

(m) energy affordability, security of supply, energy efficiency and the ‘energy efficiency first’ principle;

(n) fairness and solidarity between and within Member States;

(o) the need to ensure environmental effectiveness and progression over time;

(p) the need to maintain, manage and enhance natural sinks in the long term and protect and restore biodiversity, as well as take into account uncertainties notably those linked to the impacts of climate change in the land use sector;

(q) investment needs and opportunities, including access to public and private finance;

(r) international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the UNFCCC, as well as the support of the Union to its partners in addressing climate change and its impacts.’.