EU commits to ‘legally-binding’ 90% reduction in GHG emissions by 2040

The European Union has committed to a ‘legally-binding’ climate target of a 90% reduction in net greenhouse gas emissions by 2040, following a provisional political agreement between the European Parliament and EU Member States.

The agreed climate target, which the EU says will secure ‘a clear and steady trajectory towards a decarbonised European economy by 2050′, underlines the bloc’s commitment to the Paris Agreement, according to European Commission president Ursula von der Leyen.

‘Strong commitment’

“Today, the EU is showing our strong commitment to climate action and the Paris Agreement. One month after COP30, we have turned our words into action – with a legally binding target of 90% emissions reduction by 2040,” she commented. “We have a clear direction of travel towards climate neutrality. And a pragmatic and flexible plan to make the clean transition more competitive.”

The Commission added that the agreement incudes the option to use international credits to make an ‘adequate contribution’ towards the 2040 target, starting in 2036, which may account for up to 5% of 1990 emissions levels.

Describing the agreement as a ‘pragmatic and flexible’ way of achieving targeted emissions reductions by 2040, it highlighted the role of domestic permanent removals within the EU Emissions Trading System (EU ETS) to compensate for residual hard-to-abate emissions, and cited ‘greater flexibilities within and across sectors and instruments’ to help member states address shortfalls in specific areas simple and cost-effective way, without altering overall progress.

The agreement also postpones the application of the EU Emissions trading system for buildings, road transport as well as small industries (ETS2) by one year, from 2027 to 2028, however, the Commission noted that this postponement does not affect the monitoring, reporting and verification requirements under ETS2, which commenced this year.

‘Speed, predictability, and flexibility’

“This agreement is pragmatic and ambitious, delivering speed, predictability, and flexibility,” added Wopke Hoekstra, commissioner for Climate, Net Zero and Clean Growth.

“Above all, it shows that climate, competitiveness and independence go hand in hand and sends a powerful message to our global partners. Our industry, citizens, and Member States now have a clear direction to guide their investments to achieve a climate neutral EU by 2050.”

In terms of the next steps, the agreement, an amendment to the European Climate Law, will go on to be formally adopted by the European Parliament and the Council of the EU, before being entered in to the Official Journal of the EU and entering into force. Read more here.

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