Parliament backs 90% reduction in EU emissions by 2040

The plenary took a position on Thursday on the Commission’s proposal amending the EU’s climate law and setting new binding interim climate targets for 2040, including a 90% reduction in net greenhouse gas emissions compared to 1990 levels.

Flexibility for Member States

MEPs consider that the ecological transition and improving competitiveness in the EU go hand in hand, and therefore agree with the Commission’s proposal to introduce flexibility in meeting the targets.

From 2036, up to five percentage points of net emission reductions could be obtained through high quality international carbon credits from partner countries, for which Parliament calls for robust guarantees. The European Commission had proposed a maximum of three percentage points.

MEPs also want permanent domestic carbon offsets to be used to offset hard-to-reduce emissions within the EU Emissions Trading Scheme (EU ETS), as well as greater flexibility within and across sectors and instruments to achieve the targets in the most cost-efficient way possible.

The plenary supports the Member States’ proposal to delay by one year, from 2027 to 2028, the introduction of the EU ETS2, which will cover CO2 emissions from fuel use in buildings and road transport.

Review of the 2040 targets

Parliament wants the Commission to assess progress towards the interim targets every two years, taking into account recent scientific data, technological developments and the EU’s international competitiveness.

Among other things, the review will assess the state of net removals at EU level compared to what is needed to reach the 2040 target, as well as emerging challenges and the potential for improving the EU’s industrial competitiveness. It should also take into account trends in energy prices and their impact on both businesses and households.

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

Next steps

The text was adopted by 379 votes in favour, 248 against and 10 abstentions. Negotiations with Member States on the final form of the law can now begin.

Background

EU climate neutrality in 2050 is a legal obligation for all Member States set out in the EU Climate Law. The rule also includes an obligation to reduce net greenhouse gas emissions in the EU by at least 55% by 2030, compared to 1990 levels.

Setting an ambitious climate target for 2040 is key for the EU to meet its international commitments, which are being discussed at the 30th UN climate change conference, 10-21 November in Belém, Brazil. A delegation from Parliament will participate from 17-21 November.

More information: European Parliament