By Abbas Nazil
The Council of the European Union has reached an agreement to amend the European Climate Law by introducing a binding 2040 climate target that mandates a 90 percent reduction in net greenhouse gas emissions compared to 1990 levels.
This move marks a major milestone in the EU’s long-term objective of achieving full climate neutrality by 2050.
The amendment outlines flexible measures and principles to guide member states in meeting the 2040 goal while protecting industrial competitiveness and ensuring a fair transition for citizens.
The Council’s agreement establishes its official stance for negotiations with the European Parliament, which will finalize the legislation.
While maintaining the Commission’s proposed 90 percent reduction target, the Council introduced adjustments to address competitiveness, social balance, and the varying economic realities across member states.
It also reflects recent European Council guidance emphasizing a balanced and equitable transition.
The proposal allows countries to use high-quality international carbon credits from 2036, covering up to 5 percent of 1990 emissions, and introduces flexibility for using domestic carbon removals to offset residual emissions.
It also promotes sectoral flexibility, enabling countries to compensate for shortfalls in one area through progress in another.
The post-2030 climate framework will prioritize industrial competitiveness, innovation, energy affordability, and technological neutrality.
It will also encourage renewable energy expansion, grid modernization, and fair access to funding for sustainable technologies across all member states.
The Council emphasized the need for long-term protection of natural carbon sinks and biodiversity, while ensuring that land-use and forestry policies account for the impacts of climate change.
A new biennial review mechanism will track progress toward the 2040 target using scientific data and technological developments.
The review will assess carbon removals, industrial competitiveness, and energy prices, ensuring that policy adjustments are made when necessary.
If required, the European Commission will propose revisions to the climate law, including updates to the 2040 target, to safeguard Europe’s economic resilience and social cohesion.