The European Commission (EC) has proposed an amendment to the European Union (EU) Climate Law for a 90% reduction in net greenhouse gas emissions by 2040, compared to 1990 levels.
The proposed amendment is based on the Commission Political Guidelines for 2024-2029.
This initiative is designed to provide “certainty to investors and innovation, strengthen industrial leadership of EU businesses, and increase Europe’s energy security”.
According to a recent Eurobarometer survey, 85% of Europeans view climate change as a serious issue and 81% support the EU’s target for climate neutrality by 2050.
Effective since July 2021, the EU Climate Law legally binds the EU to reach climate neutrality by 2050.
The EU is on track to meet its 2030 target of a 55% reduction, and the new proposal aims to build on this legally binding goal, offering a more “pragmatic and flexible” approach to achieving the proposed 2040 climate target.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe target aligns with the EU Competitiveness Compass, Clean Industrial Deal, and Affordable Energy Action Plan, taking into consideration the current economic, security, and geopolitical context.
The Clean Industrial Deal’s implementation is crucial, with the State Aid Framework and the simplification of the carbon border adjustment mechanism (CBAM) being key elements.
The EC has also released a communication on the Clean Industrial Deal, detailing the progress and actions needed to achieve the 2040 climate target.
The proposal will now be discussed and potentially adopted by the European Parliament and the Council under the ordinary legislative procedure, setting the stage for the post-2030 EU policy framework.
The proposal offers a flexible path to decarbonisation, with the potential for high-quality international credits from 2036 and domestic permanent removals in the EU Emissions Trading System.
The proposal also outlines measures for affordable energy, support for power purchase agreements, and the upcoming Industrial Decarbonisation Bank.
EC president Ursula von der Leyen said: “As European citizens increasingly feel the impact of climate change, they expect Europe to act. Industry and investors look to us to set a predictable direction of travel.”
