The European Parliament adopted its position on the Commission’s proposed amendment to the EU Climate Law, endorsing a binding target to cut net greenhouse-gas emissions by 90% by 2040 compared with 1990 levels. The outcome reflects an effort to reconcile scientific advice with the political and economic realities across member states. Let’s look at what this new target involves!

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Understanding the New Commitment

The 90 % reduction is framed as a “net” objective, meaning emissions cuts within the EU can be complemented by removals and, to a limited extent, by international carbon credits. Parliament agreed that up to 5% points of the 2040 target may be met through verified credits from outside the EU after 2036. This flexibility helped secure enough political support, though it raises questions about how much of the transition will come from genuine domestic reductions. Given concerns about the reliability of international credit markets, many observers argue that reliance on offsets should be minimal to preserve the credibility of the overall effort.

What the Target Means in Practice

Setting a clear 2040 objective gives governments and investors a more predictable policy horizon, but meeting it will require substantial and coordinated change across energy, transport, industry, agriculture and buildings. Member states will have to accelerate action at a time of high energy costs, uneven industrial competitiveness and differing capacities to decarbonise.

This is where the harder work begins. Trilogue negotiations will determine the final legal framework, including how progress is measured and how responsibilities are shared across sectors. Delivering the target will depend on long-term investment, technological innovation and public support, especially in sectors facing structural constraints such as heavy industry and agriculture. Additionally, if international credits are used, ensuring their environmental integrity will remain essential.

The Path Still to Be Defined

Parliament’s vote sets a clear destination, but the path remains to be defined. The years ahead will determine whether the EU can translate this commitment into real and measurable progress, fair outcomes and a resilient transition.

References & Resources

• EU, in. (2025, November 13). EU 2040 climate target: MEPs want 90% emissions reduction in EU climate law | News | European Parliament. Europa.eu. https://www.europarl.europa.eu/news/en/press-room/20251110IPR31334/eu-2040-climate-target-meps-want-90-emissions-reduction-in-eu-climate-law