2040 climate target: Council gives final green light 12:30 The Council adopted the amended European climate law with a binding intermediate climate target for 2040, of a 90%[...]

Today, the Council formally adopted the amended European climate law, introducing a binding intermediate climate target, for 2040, of a 90% reduction in net greenhouse gas (GHG) emissions compared to 1990 levels. This new target strengthens the EU's path towards achieving climate neutrality by 2050 across all sectors of the economy.

From 2036 onwards, high-quality international credits may be used up to a limit of 5% of 1990 EU net emissions to make an adequate contribution towards the 2040 target in a way that is both ambitious and cost-efficient. This means that at least 85% of emissions reductions must be achieved within the EU. Credits must be based on credible activities of GHG reduction in partner countries, in line with the Paris agreement.

The amended climate law sets out further key elements the Commission must consider when preparing its legislative proposals for the post-2030 period, with a focus on competitiveness, simplification, social fairness, energy security and affordability, alongside other priorities. Among these elements are:

• EU-based permanent carbon removals (processes that involve capturing carbon dioxide from the atmosphere and storing it durably) to compensate for residual hard-to-abate emissions under the EU emissions trading system
• enhanced flexibility within and across sectors and instruments, to support the achievement of targets in a simple and cost-effective way

The amended climate law also shifts the date for the EU emissions trading system for road transport, buildings and other sectors (ETS2) to become fully operational by one year, moving it from 2027 to 2028.

Next steps

This adoption marks the final step in the legislative process. The amended regulation will enter into force 20 days after its publication in the Official Journal of the European Union and will apply directly in all EU countries. The Commission will make relevant proposals to implement the binding EU 2040 climate target.

The amended regulation also provides for a review of the European Climate Law every two years. Based on science and technological developments, the Commission will assess the climate law taking into account EU competitiveness, energy prices, net removals at EU level, and the flexibility for EU countries to use high-quality international credits to meet their post-2030 targets.

The Commission will propose revisions to the climate law or additional measures where needed to support competitiveness and long-term prosperity.

Background

First adopted in 2021, the European climate law provides the legal foundation for the EU's long-term climate policies, in line with the Paris agreement. It set a binding economy-wide target of climate neutrality by 2050 and a 2030 objective of reducing net emissions by at least 55%. It also provided for the establishment of an intermediate climate target for 2040.

After publishing the communication 'Europe's 2040 climate target' in February 2024, the European Commission formally proposed the new climate target on 2 July 2025 through an amendment of the European climate law.

In October 2025, the European Council provided strategic guidance on the way forward on the framework for establishing a target for 2040. In particular, EU leaders emphasised the need for a balanced approach that would preserve and boost the EU's competitiveness, while ensuring a socially fair transition. They also called on the Commission to strengthen the supporting framework for European industry and citizens in achieving the 2040 target.

• Amended European climate law
• 2040 climate target: Council and Parliament agree on a 90% emissions reduction (press release, 10 December 2025)
• Statements
• Voting results
• European Council conclusions on competitiveness and the twin transition (23 October 2025)

Climate change: what the EU is doing