The European Parliament has approved a legally binding target to reduce emissions by 90% by 2040

The European Parliament has approved a new legally binding climate target requiring the European Union to reduce greenhouse gas emissions by 90 percent by 2040 compared with 1990 levels. This measure is part of the EU's long-term path towards climate neutrality by 2050 and represents a new interim milestone between the existing 2030 and 2050 targets. Members of the European Parliament have voted to revise the EU Climate Law to include a new target for 2040.

Additional flexibility due to carbon credits and removals

The updated legislation introduces additional flexibility for Member States to achieve the 2040 target. Starting in 2036, up to five percentage points of the required emission reductions can be achieved through the use of high-quality international carbon credits. This represents an increase of two percentage points over the European Commission's initial proposal. Guarantees have been included to ensure that such loans do not support projects that are contrary to the strategic interests of the EU.

The law also allows for the use of permanent domestic carbon absorption to offset emissions that are difficult to reduce, within the framework of the EU Emissions Trading System (ETS). In addition, it provides greater flexibility between sectors and policy instruments to help achieve the goal in a more cost-effective way while maintaining industry competitiveness.

ETS 2 launch postponed and progress reviews introduced

Within the framework of