EU Countries Approve 2040 Climate Target, Committing to 90% Emission Reduction

EU Countries Approve 2040 Climate Target, Committing to 90% Emission Reduction

Economies & Policies

Mar 11, 2026

281

EU Climate Law2040 TargetEmission ReductionCarbon NeutralityETS2

March 5, 2026 – The Council of the European Union formally adopted amendments to the European Climate Law, establishing a binding target to reduce net greenhouse gas emissions by 90% by 2040 compared to 1990 levels.

 

The amended regulation will enter into force 20 days after publication in the Official Journal of the European Union and will be directly applicable in all EU member states. The European Commission will propose relevant legislation to implement the binding EU 2040 climate target.

 

According to the Council's announcement, in implementing the newly established interim target, at least an 85% reduction compared to 1990 levels must be achieved within the EU. The remaining 5 percentage points can be offset from 2036 onwards through "high-quality international carbon credits" from other countries . These carbon credits must come from "verifiable greenhouse gas reduction activities in partner countries" and comply with the Paris Agreement.

 

The amendments also postpone the full implementation of the EU Emissions Trading System covering buildings and road transport by one year, from 2027 to 2028.

 

The EU adopted the European Climate Law in 2021, establishing the goals of achieving climate neutrality by 2050 and reducing net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. The European Commission formally proposed the amendment in July 2025, adding the 2040 interim target. In December 2025, the European Parliament and the Council reached a provisional political agreement on the amendment.

 

The Czech Republic, Slovakia, Poland, and Hungary opposed the target.

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