The European Parliament has approved amendments to the EU Climate Law, endorsing a binding 90% net emissions reduction target for 2040.
Parliament approves new 2040 target under the EU Climate Law
On 10 February, the European Parliament adopted amendments to the EU Climate Law with 413 votes in favour and 226 against. The changes introduce a new binding intermediate climate target for 2040, requiring a 90% reduction in net greenhouse gas emissions compared to 1990 levels.
The vote follows a political agreement between Parliament and the Council of the EU. The Council had requested greater flexibility to make the 2040 target operational. This flexibility includes the possibility of using international carbon credits to cover up to 5% of greenhouse gas reductions and a biennial review of progress based on factors such as energy prices.
Background and Commission proposal
The EU Climate Law, adopted in 2021, set the objective of achieving climate neutrality by 2050 and reducing net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. In May 2025, the European Commission stated that the EU was on track to meet its 2030 climate targets, noting that emissions had fallen by 37% compared to 1990.
In July, the Commission presented a proposal to amend the EU Climate Law, introducing the 90% emissions reduction target for 2040 and allowing, from 2036, the use of international carbon credits to contribute up to 3% towards that objective.
Some Member States raised concerns about a possible loss of the EU’s economic competitiveness. In order to reach an agreement on the new target, capable of satisfying the Member States, it was necessary to grant them greater flexibility regarding the instruments used to achieve the climate objectives, effectively weakening them.
The text approved by Members of the European Parliament then moved to interinstitutional negotiations between the Parliament and the Council of the EU. Parliament has now approved the agreement reached with the Council. Once it is also approved by the latter, the amended text of the EU Climate Law will enter into force 20 days after its publication in the Official Journal of the European Union.
Greater flexibility for member states
The revised EU Climate Law introduces several degrees of flexibility in achieving the 2040 objective. From 2036 onwards, up to five percentage points of net emission reductions, two percentage points more than initially proposed by the Commission, may come from high-quality international carbon credits.
Parliament secured provisions requiring that such credits be used only in sectors not covered by the EU Emissions Trading System and sourced exclusively from partner countries with climate targets and policies aligned with the Paris Agreement. Lawmakers also introduced safeguards to prevent financing projects contrary to the EU’s strategic interests.
The text also allows the use of permanent domestic carbon removals to offset hard-to-abate emissions under the ETS and introduces greater flexibility between economic sectors. In addition, the launch of the EU’s ETS2 has been postponed by one year, to 2028.
Review mechanism for the 2040 target
Another element reinforcing flexibility concerns the review process. The Commission will assess progress every two years, taking into account updated scientific data, technological developments and the state of EU industrial competitiveness. The review will also consider energy price trends and their impact on citizens and businesses, as well as the status of carbon removals.
Following this assessment, the Commission may propose further amendments to the EU Climate Law, including a potential revision of the 2040 target or additional measures to provide greater flexibility to member states.
