EU Climate Law 2040 Target Approved: 90% Emissions Cut Backed by European Parliament

On February 10, the European Parliament approved a political agreement with the Council of the European Union to revise the EU Climate Law, formally embedding a binding 2040 climate target into legislation. The measure was adopted with 413 votes in favor, 226 against, and 12 abstentions, confirming a legally enforceable commitment to cut net greenhouse gas emissions by 90% compared with 1990 levels. Following final approval by the Council and publication in the EU Official Journal, the amended EU Climate Law will enter into force after 20 days, consolidating the European Union’s long-term climate governance structure and reinforcing legal certainty across member states.

EU Climate Law Sets Binding 2040 Climate Target

The revised EU Climate Law establishes a mandatory 2040 climate target that compels a 90% reduction in greenhouse gas emissions relative to the 1990 baseline. This target functions as a structural midpoint between the 2030 emissions reduction objectives and the overarching 2050 climate neutrality goal. By codifying the 2040 benchmark into primary legislation, the European Union enhances predictability for industrial sectors, financial stakeholders, and national administrations. The binding nature of the target is designed to accelerate structural decarbonization across energy, transport, manufacturing, and other high-emission sectors while preserving economic resilience and competitiveness within the single market.

Voting Outcome and Legal Timeline

• 413 votes in favor

• 226 votes against

• 12 abstentions

The European Parliament vote represents a decisive legislative milestone in the evolution of EU climate policy. Once the Council formally endorses the text, the revised EU Climate Law will be published in the Official Journal of the European Union. It will become legally binding 20 days after publication, ensuring uniform applicability across all member states. This procedural sequence guarantees that the 2040 climate target is enforceable within national legal frameworks and aligned with the broader greenhouse gas emissions reduction trajectory set at the EU level.

Flexibility Mechanisms Under the Revised Framework

The amended EU Climate Law integrates structured flexibility provisions to facilitate achievement of the 2040 climate target without undermining environmental integrity. Beginning in 2036, up to five percentage points of the required net emissions reduction may be met through high-quality international carbon credits acquired from partner countries. This mechanism introduces controlled external flexibility, enabling cost-efficient compliance while maintaining robust accounting standards and alignment with international climate commitments.

Carbon Removals and EU ETS Adjustments

The updated framework authorizes the use of domestic permanent carbon removals to offset residual emissions that remain technically or economically challenging to eliminate within the EU Emissions Trading System (EU ETS). These removals must meet durability and verification criteria to ensure long-term atmospheric impact.

• Use of permanent domestic carbon removals within the EU ETS framework

• Postponement of ETS2 implementation from 2027 to 2028

• Biennial European Commission review of progress toward the 2040 climate target

In addition, the start of the EU’s ETS2 system has been deferred by one year, shifting its operational launch from 2027 to 2028. The European Commission will conduct progress assessments every two years to evaluate greenhouse gas emissions trends, policy performance, and alignment with the 2040 climate target.
By embedding a binding 2040 climate target and recalibrating the EU ETS architecture, the EU Climate Law strengthens the European Union’s decarbonization pathway, combining regulatory rigor with calibrated flexibility to support sustained net emissions reduction over the coming decades.