2040 climate target: Council agrees its position on a 90% emissions reduction 14:07 The Council has agreed to amend climate law to set a 90% emissions reduction target for[...]

Today, the Council has reached an agreement on amending the European climate law (ECL), 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 is a crucial step towards the EU's long-term goal of achieving climate neutrality by 2050.

The amendment also sets out some areas of flexibility and key elements for the 2040 target and for the post-2030 climate framework. These will steer the Commission's future legislative proposals to enable member states to hit the 2040 target while supporting European industry and citizens throughout the transition.

The text agreed today sets out the Council's position for the upcoming negotiations ('trilogues') with the European Parliament that will shape the final text of the legislation.

Main changes agreed by the Council

The Council has maintained the binding 90% reduction of net GHG emissions by 2040 proposed by the Commission. However, it has made some adjustments to reflect concerns about the EU's competitiveness, the need for a just and socially balanced transition, uncertainty related to natural removals and the diverse national circumstances across member states. These changes were also informed by the strategic guidance provided by EU leaders in the European Council conclusions adopted on 23 October 2025.

Scope for flexibility for the member states

The Commission's proposal included three flexibility options, to be appropriately reflected in future Commission legislative proposals for achieving the 2040 target. The Council further clarified these areas of flexibility, which include:

• the possibility to use high-quality international carbon credits to make an 'adequate contribution' towards the 2040 target, quantified as up to 5% of 1990 EU net emissions, from 2036 onwards, including a pilot period for the period 2031-2035
• a role for domestic permanent carbon removals under the EU emissions trading system (ETS) to compensate for residual hard-to-abate emissions
• enhanced flexibility within and across sectors and instruments to support the attainment of targets in simple and cost-effective ways, allowing member states to address shortfalls in one sector without compromising overall progress

Elements for the post-2030 framework

The amendment to the European climate law proposed by the Commission also establishes a series of principles and conditions that the must be taken into account in developing the post-2030 policy framework to enable member states to achieve the 2040 target and to ensure a fair, cost-effective and socially balanced transition that drives investment. While the Council's position maintains many of the elements included in the Commission's proposal, it further develops them, including by:

• placing a greater focus on strengthening the competitiveness of the EU's economy and industry, as well as on simplification and reduction of administrative burden
• clearly emphasising the need for a just transition and taking into account different national circumstances
• fostering innovation and the deployment of safe, scalable technologies across all sectors in a technologically neutral manner, while ensuring that energy efficiency remains a central principle
• enhancing support for energy security, focusing on renewable energy solutions, energy affordability and grid modernisation to secure the EU's energy supply
• supporting investment and innovation, through both public and private sector funding and ensuring access to innovative technologies across member states
• addressing the realistic contribution of carbon removals to overall emission reductions, while accounting for the uncertainty associated with them
• focusing on the long-term protection and enhancement of natural carbon sinks and biodiversity, addressing the impacts of climate change and natural disturbances on land use and forestry

Review of the target

The Council's position also introduces a biennial assessment to track progress towards intermediate targets based on the latest scientific evidence, technological advances and the EU's global competitiveness.

Member states further elaborated and strengthened the review clause of the existing European climate law. Among other things, the review will cover the status of net removals at EU level in relation to what would be required to achieve the 2040 target and the evolving challenges to - and opportunities to improve - EU industries' global competitiveness. The review will also take into account the evolution of energy prices and their impact on industries and households.

Based on the findings of the review and where appropriate, the Commission will have to propose a revision of the climate law. This may include adjusting the 2040 target or other additional measures to strengthen the enabling framework, namely to secure the EU's competitiveness, prosperity and social cohesion.

ETS2 postponement

The Council also introduced a provision to postpone the entry into application of the EU emissions trading system for buildings and road transport (ETS2) by one year, from 2027 to 2028.

Next steps

The Council presidency will start negotiations with the European Parliament once the latter adopts its position, with a view to agreeing on the final text of the amendment.

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 sets a binding economy-wide climate neutrality target by 2050 and a 2030 objective of reducing net emissions by at least 55%. It also provides 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 put forward a proposal on 2 July 2025 to amend the European climate law to set a 2040 target.

More recently, in October 2025 the European Council provided strategic guidance on the way forward to establish a target for 2040. In particular, leaders emphasised the need for a balanced approach that would preserve and boost the EU's competitiveness, while ensuring the social fairness of the transition. They also emphasised the need to take into account the uncertainties of natural removals. The European Council additionally called on the Commission to further develop the necessary enabling conditions to support European industry and citizens in achieving the 2040 target.

• Proposal to amend the European climate law (European Commission)
• European Council conclusions on competitiveness and the twin transition (23 October 2025)
• European climate law
• Climate change: what the EU is doing (background information)