The Council of the European Union has formally approved an amendment to the EU climate law establishing a binding target to cut net greenhouse gas (GHG) emissions by 90% by 2040 compared with 1990 levels.
The decision marks the final step in the legislative process after the European Parliament adopted its position earlier this year. The new goal is designed as an intermediate milestone toward the EU’s legally binding objective of achieving climate neutrality by 2050.
The target will guide the bloc’s climate and energy policy framework beyond 2030 and shape future legislative proposals from the European Commission aimed at delivering the emissions cuts.
Relevant: EU Parliament Greenlights Ambitious 2040 Climate Goal
The revised law also introduces a set of flexibilities intended to support member states and industry during the transition. Among them is the possibility to count a limited share of high-quality international carbon credits toward the target starting in 2036, alongside a role for permanent carbon removals to offset residual emissions in hard-to-abate sectors.
The framework is meant to balance climate ambition with economic competitiveness, energy security and the need for a socially fair transition. It also postpones the full implementation of the EU’s new emissions trading system for road transport, buildings and other sectors (ETS2) by one year, shifting the start date from 2027 to 2028.
“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 ahead,” Cyprus’ environment minister Maria Panayiotou said in a comment.
The amendment builds on the EU climate law adopted in 2021, which established the legal foundation for the bloc’s climate policy and set a 2030 target of reducing net emissions by at least 55% compared with 1990 levels.
The revised regulation will take effect 20 days after its publication in the Official Journal of the EU and will apply directly across all EU member states.
Afterwards, the European Commission will begin developing the next set of policies designed to ensure the bloc stays on track to meet its long-term climate neutrality commitment under the Paris Agreement.
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