The European Commission has announced an important step in the fight against climate change – a proposed update to the European Climate Law, which sets a new interim target: by 2040, the European Union must reduce its net greenhouse gas emissions by 90% compared to 1990 levels. This proposal is a logical continuation of the targets already set: a 55% net reduction by 2030 and climate neutrality by mid-century.
The new target is intended to send a clear signal to industry, investors and the public that Europe intends to remain a leader in the transition to a green economy and to provide long-term predictability for businesses in planning investments in sustainable technologies and innovation. According to the European Commission, reducing emissions on this scale will be both economically feasible and environmentally necessary, and the proposal is in line with scientific data and the economic and social realities in the Union. The proposal is a continuation of the EU Competitiveness Compass, the Clean Industry Pact and the Action Plan for Affordable Energy. It also provides for flexibility and support instruments, including carbon capture mechanisms, natural solutions to remove CO₂ from the atmosphere and balanced mechanisms to support Member States in their transition. These tools include a limited role for high-quality international credits from 2036 onwards, use of domestic permanent removals in the EU Emissions Trading System (EU ETS) and greater flexibility between sectors to help achieve the targets in an economically efficient and socially fair manner. In particular, this could allow a Member State to compensate for a land use sector in difficulty by overachieving on waste and transport emissions reductions.
The document refers to an in-depth impact assessment and guidance from the Intergovernmental Panel on Climate Change and the European Climate Science Advisory Council. Adoption should follow a strong commitment by Member States, the European Parliament, stakeholders, civil society and citizens, which was launched with the Commission Recommendation on the target in February 2024.
According to the latest Eurobarometer survey, a majority of European citizens support strengthening climate policies. Growing public approval for more stringent measures underlines the importance of policy action that is both ambitious and realistic. It is precisely this combination that the Commission’s new proposal aims to deliver.
The new climate target for 2040 is expected to enter the legislative process, which will include further consultations, impact assessments and negotiations between the European Parliament and the Council of the EU. This process will also refine the specific policies and guidelines that Member States, including Bulgaria, will need to adapt their economies, energy systems and infrastructure to.
For Bulgaria, this new target will mean accelerated work on decarbonising industry, more serious investment in renewable energy sources, energy efficiency and the development of sustainable transport. Although challenging, this transformation is also an opportunity for modernisation, the creation of green jobs and the improvement of quality of life in the long term.
Implementing the Clean Industry Pact to achieve the 2040 climate target
The Commission also published a communication on the presentation of the first proposals for the Clean Industry Pact, just a few months after its presentation. As the EU’s competitiveness compass goes hand in hand with decarbonisation, its implementation is crucial to achieving the 2040 climate target. Today’s communication reviews the first wave of actions taken, the progress achieved and the remaining measures to be taken.
One of the main results is the State Aid Framework for the Clean Industry Pact, adopted at the end of June to further support investment in the transition to clean energy. A simplification of the Carbon Border Adjustment Mechanism (CBAM) has also been agreed, exempting 90% of importers, thereby reducing red tape and ensuring smooth implementation. This simplification is a first step ahead of a more comprehensive review of the carbon border adjustment mechanism at the end of the year, accompanied by legislative proposals to strengthen the mechanism.
The Communication outlines the results of the Commission’s analysis on ways to address the problem of carbon leakage in exports.
In addition to the State aid framework and the Communication, the Commission is also publishing a Recommendation on tax incentives to promote investment in clean technologies and the decarbonisation of industry through measures such as accelerated depreciation and tax credits, as well as recommendations and guidance documents on optimising the use of the new EU rules on renewable energy, aimed at expanding renewable energy sources and reducing energy costs.
Measures for affordable energy, to increase the production of components for the electricity grid and to support power purchase agreements, the pilot project for a future decarbonisation bank for industry, the upcoming action plan for the chemical industry and sectoral dialogues with stakeholders are among the actions that will help deliver the Clean Industry Pact. Later this month, the proposals for the next multiannual financial framework are also expected to set out how the future EU budget will support the clean energy transition.
Setting the EU’s 2040 climate target to deliver on international climate commitments
With the proposed 90% target, the EU is also sending a signal to the global community: Europe will stay on track on climate change, deliver on its Paris Agreement commitment and continue to work with partner countries to reduce global emissions.
Ahead of the UN Climate Change Conference (COP30) in Belém, Brazil, in November, the Commission will work with the Council Presidency to finalise the communication on the EU’s nationally determined contribution (NDC).
Next steps
The Commission’s proposal for a 2040 climate target will be presented to the European Parliament and the Council for discussion and adoption under the ordinary legislative procedure.
The future agreed EU climate target will also serve as a benchmark for the EU’s post-2030 policy framework, which will be developed thereafter.
Background
The European Climate Law, which entered into force in July 2021, transforms the EU’s commitment to achieving climate neutrality and the interim target of reducing net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels into law. To achieve the agreed decarbonisation targets, the EU has since adopted a 2030 legislative package, known as “Fit for 55”, and its implementation by EU Member States, which is essential for achieving the 2040 targets, is ongoing. The Commission’s assessment of the national energy and climate plans (NECPs) presented on 28 May showed that the EU as a whole is on track to achieve its 2030 climate target of a 55% reduction in greenhouse gas emissions.
The Climate Act contains a legal requirement for an interim climate target for 2040 to set the pace for achieving climate neutrality — a proposal that is required within six months of the first global stocktake of the Paris Agreement, to be carried out in December 2023.
For more information
Proposal for an EU climate target for 2040
Commission staff working document
European Climate Law – policy page
Commission Recommendation on a climate target for 2040
Public consultation on the 2040 climate target
