EU 2040 climate target: MEPs seek 90% emissions reduction

From 2036, 5 percentage points of emissions reductions could come from international carbon credits

ETS2 to be postponed until 2028

Progress report every two years with possibility of review of 2040 target

Green transition goes hand in hand with improving EU competitiveness

MEPs want a 90% reduction target for emissions by 2040 compared with 1990 levels to achieve a climate neutral EU by 2050.

The Environment, Climate and Food Safety Committee adopted its position on the Commission’s proposal for an amendment to the EU Climate Law on Monday, setting a new, additional, intermediate and binding 2040 EU climate target of reducing net greenhouse gas (GHG) emissions by 90% compared to 1990 levels.

Flexibility for member states

The MEPs believe that the green transition and improving EU competitiveness go hand in hand. They therefore agree with the Commission’s proposal to introduce new flexibilities in how the targets can be met.

From 2036, up to 5 percentage points of net emissions reductions could come from high-quality international carbon credits from partner countries, but the MEPs want assurances that this will be subject to robust safeguards. The Commission proposed up to 3 percentage points.

They also want the possibility for domestic permanent carbon removals to be used to compensate for hard-to-abate emissions in the EU emissions trading system (EU ETS) as well as enhanced flexibilities within and across sectors and instruments to achieve targets that are as cost effective as possible.

Finally, the MEPs also support the member states’ proposal to postpone from 2027 to 2028 the start of ETS2, which covers CO2 emissions from fuel combustion in buildings and road transport.

Review of the 2040 target

The MEPs want the Commission to assess progress towards intermediate targets every second year, taking into account the most recent scientific data, technological developments, and the EU’s international competitiveness.

Among other aspects, the review will assess the status of net removals at EU level compared with what is necessary to meet the 2040 goal, as well as emerging difficulties and the potential for enhancing EU industries’ global competitiveness. The review will also consider trends in energy prices and their repercussions for both businesses and households.

Following the conclusions of the review, the Commission will propose an amendment to the EU climate law if appropriate. This could involve modifying the 2040 target or taking additional measures to strengthen the supporting framework - for instance to safeguard the EU’s competitiveness, prosperity, and social unity.

Next steps

The text was adopted by 55 votes to 32 and with 0 abstentions. Plenary is expected to vote on Parliament’s position on 13 November, after which negotiations with the member states on the final law can begin.

Background

The European Climate Law makes the goal of climate neutrality by 2050 a legally binding obligation for all EU member states. It also establishes a legally binding target for the EU to reduce net GHG emissions by at least 55% by 2030, compared to 1990 levels.

Setting an ambitious 2040 EU climate target is also important for the EU to deliver on the international climate commitments that are on the agenda of the 30th UN climate conference, which begins today in Belém, Brazil. A Parliament delegation will attend from 17 to 21 November.