European Parliament Approves EU's 2040 Emissions Reduction Target

The European Parliament passed its position paper on the amendment to the European Climate Law on the 13th, supporting the addition of a legally binding mid-term climate target for 2040 to the EU's existing climate legislation.

The position paper adopted by the European Parliament calls for the EU to reduce its net greenhouse gas emissions by 90% compared to 1990 levels by 2040. It also endorsed the European Commission's proposal to introduce flexibility measures in how the target is achieved.

The European Parliament expressed support for allowing member states, starting from 2036, to use international carbon credits purchased from other cooperating countries to offset up to 5% of the total 1990 emissions as part of their reduction obligations. The Parliament also advocated for incorporating permanent carbon removals into the EU Emissions Trading System, in addition to existing reduction methods, which could be used to offset some hard-to-abate emissions.

The European Parliament requested that the European Commission assess member states' progress towards the mid-term target every two years, based on the latest scientific data, technological developments, and the EU's competitiveness. If necessary after assessment, the Commission may propose revisions to the European Climate Law, including adjusting the 2040 target or introducing additional supporting measures, to ensure EU competitiveness, economic prosperity, and social cohesion.

The EU adopted the European Climate Law in 2021, establishing climate neutrality by 2050 as a legal obligation for member states and setting a binding target to reduce net greenhouse gas emissions by at least 55% compared to 1990 levels by 2030. Setting the 2040 target is seen as a crucial step for the EU in fulfilling its international climate commitments.

In July of this year, the European Commission announced that it had proposed an amendment to the European Climate Law, setting a target to reduce net greenhouse gas emissions by 90% compared to 1990 levels by 2040. On the 5th of this month, the European Council announced that member states had reached an agreement on amending the European Climate Law and formulated a position paper, maintaining the European Commission's proposed target of a 90% reduction in net greenhouse gas emissions by 2040 compared to 1990 levels. Subsequently, the European Parliament and the European Council will negotiate the final legislative text.