EU countries have formally adopted a new climate target requiring the bloc to cut net greenhouse gas emissions by 90 per cent by 2040 compared with 1990 levels, strengthening the EU’s pathway toward climate neutrality by mid-century, despite opposition from several central and eastern European countries during earlier negotiations. The decision caps months of negotiations between member states over how fast the bloc should cut emissions after 2030.
The measure amends the EU’s climate law and establishes the bloc’s next major milestone after the existing goal of reducing emissions by at least 55 per cent by 2030, giving industry and investors clearer expectations for the clean-energy transition in the following decade.
Compromise sets limits on carbon credits
Under the compromise adopted Thursday by the Council of the EU, at least 85 per cent of emissions reductions must come from domestic cuts, while up to 5 per cent may be met through high-quality international carbon credits from 2036 onwards, provided they comply with the Paris Agreement.
Cyprus environment minister Maria Panayiotou said the adoption provides certainty for the EU’s clean transition.
“The European Union remains committed to leading the global fight against climate change while protecting our competitiveness and ensuring no one is left behind. Today’s adoption of the landmark 2040 climate target will give industry, citizens and investors the reassurance they need for the clean transition in the decade ahead.”
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Opposition recorded in November 2025 vote
The political agreement behind the target was reached earlier, when EU environment ministers voted on the proposal during an Environment Council meeting on 5 November 2025.
At that vote, Poland, Hungary, the Czech Republic and Slovakia notably opposed the target, arguing the scale of emissions cuts could put pressure on industry and increase costs for households.
Thursday’s step was the formal final adoption of the law, completing the legislative process following the political agreement between member states.
Concessions to sceptical governments
The final compromise includes several flexibility measures aimed at addressing concerns from more sceptical countries.
These include allowing limited international carbon credits toward the 2040 goal, recognising EU-based permanent carbon removals under the EU emissions trading system and delaying the launch of the EU’s new carbon market for buildings and road transport (ETS2) to 2028, one year later than initially planned.
What’s next
The amended climate law will enter into force 20 days after publication in the Official Journal of the European Union.
The European Commission is expected to propose further legislation to implement the 2040 target across sectors, while the climate law itself will be reviewed every two years based on scientific developments, competitiveness and energy price impacts.
