BRUSSELS — The Council of the European Union on Wednesday agreed to amend the European Climate Law, setting a binding target to reduce net greenhouse gas emissions by 90 percent by 2040 compared to 1990 levels — a milestone decision on the bloc’s path to achieving full climate neutrality by 2050.
In a statement released on Wednesday, Lars Aagaard, Denmark’s Minister for Climate, Energy and Utilities, who chaired the discussions, said the new target combines scientific grounding with economic and security priorities.
“Today, we have adopted a 90 percent climate target for 2040 with broad support from the member states,” Aagaard said. “The target is rooted in science and at the same time, it combines our competitiveness and security. This is important for the future of Europe — and it shows that even in challenging times, we can stand united.”
He added that the decision provides “a clear direction years ahead for our policies, industries and investments,” describing it as a foundation for a “stronger, more competitive and secure EU.”
The agreed text, which will now serve as the Council’s position for negotiations with the European Parliament, maintains the Commission’s proposed 90 percent reduction target while introducing flexibility measures to help member states balance climate action with competitiveness and social fairness.
Under the new provisions, member states may use limited high-quality international carbon credits—up to 5 percent of 1990 EU net emissions starting in 2036—to meet part of their targets. Domestic permanent carbon removals under the EU Emissions Trading System (ETS) and sectoral flexibility are also included to facilitate compliance.
The Council further emphasized the importance of innovation, energy security, and a just transition, highlighting the need to strengthen Europe’s industrial competitiveness while safeguarding social cohesion.
The agreement calls for biennial reviews to assess progress toward the 2040 target, taking into account the latest scientific data, technological advancements, and the EU’s global economic position. The Commission may propose revisions to the climate law based on these findings.
In a significant adjustment, the Council also agreed to postpone the launch of the EU Emissions Trading System for buildings and road transport (ETS2) from 2027 to 2028 to allow more time for member states to prepare.
Adopted in 2021, the European Climate Law established the EU’s binding target of net-zero emissions by 2050 and a 55 percent reduction by 2030. The 2040 target, first proposed by the European Commission in July 2025, represents a key bridge between these two goals and provides the policy framework for the bloc’s next phase of climate action.
Negotiations with the European Parliament, expected to begin in the coming months, will determine the final form of the legislation.
