EU Sets Bold Intermediate 2040 Climate Target: Net GHG Emissions –90 % vs 1990 

In July 2025, the European Commission proposed amending the EU Climate Law to introduce a legally binding target of reducing net greenhouse gas emissions by 90 % by 2040 compared to 1990 levels. This is a crucial waypoint between the 2030 target of –55 % and the 2050 goal of net zero emissions. 

The proposal comes with two novel “flexibilities”: for the first time, up to 3 % of the emissions reduction can be achieved using high-quality international carbon credits under Article 6 of the Paris Agreement and domestic carbon dioxide removals may be included in the EU Emissions Trading System (EU ETS). This marks a shift from previous targets, which relied entirely on domestic emissions cuts. 

The European Scientific Advisory Board initially recommended a 90–95 % reduction the Commission landed on the lower end (90 %) to balance ambition with political feasibility. The proposal comes amid heatwaves sweeping the continent, reinforcing the urgency for action and the potential for adaptation and resilience policies. 

Reaction across the spectrum has been mixed. Environmental NGOs and scientific advisors welcomed the increased ambition, but several signaled concern over the inclusion of international offsets, warning that this could diminish domestic emission reductions. Meanwhile, policymakers in France, Poland, and other member states support the flexibility, arguing it eases economic pressures. 

Analysts view the 2040 milestone as vital for the upcoming revision of the EU’s Nationally Determined Contribution (NDC) under the Paris Agreement, due by September 2025 just ahead of COP30 in Brazil.