Released November 25, 2025 | GALWAY, IRELAND
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)
Summary
A new binding emissions reduction target of 90% by 2040 has been voted through by the European Parliament but not without compromises, including the inclusion of international carbon credits for industry. There has also been a one-year delay to the introduction of the revamped EU Emissions Trading System (ETS) - ETS2 - which tracks emissions from Europe's biggest polluters.
Europe's New 20340 Climate Goal
A new binding climate target for the European Union (EU) for 2040 has been voted through despite efforts by the far-right to quash it.
The European Parliament voted in favor of the European Commission's (EC's) proposal for an amendment to the EU Climate Law, setting a new intermediate and binding 2040 EU climate target of reducing net greenhouse gas (GHG) emissions by 90% compared to 1990 levels. The vote was carried by 379 votes to 248 and with 10 abstentions with efforts by the right-wing European Conservatives and Reformists and the far-right Patriots of Europe and Europe of Sovereign Nations groups failing to garner enough votes to stop the new target from being adopted.
European Climate Law
The European Climate Law enshrines the goal of climate neutrality by 2050, making it a legally binding obligation for all EU member states. The new 2040 target builds on the existing 2030 legally binding target to reduce net greenhouse gas (GHG) emissions by at least 55%, compared to 1990 levels. By 2035, the goal is to reduce net GHG emissions by 66.25-72.5% below 1990 levels.
European Commission President Ursula von der Leyen, who was representing the EU at the COP30 climate conference in Brazil, wrote: "While the crucial COP30 conference takes place in Belém, Europe shows that climate action and competitiveness go hand in hand. The Parliament's vote on our proposal to reduce CO2 emissions by 90% by 2040 is a very welcome development. And an important step on our path to climate neutrality by 2050."
Compromises
The current deal came with some notable compromises, including a decision to allow nations offset 5% of their 90% emissions target using "high-quality international carbon credits from partner countries". This could also be reviewed to allow for an extra 5% to come from international carbon credits if the EU is failing to hit the 90% target. The European Parliament wants assurances that this will be subject to "robust safeguards". The deal also delays the implementation of a new emissions trading system, called ETS2, by a year to 2028, a move that has been heavily criticised by environmental and renewable energy groups. The current EU Emissions Trading System (ETS) covers more than 10,000 industrial and power installations and airlines operating flights in and between airports across the 27 EU Member States and a few non-EU countries in Europe. It reduces emissions by pricing pollution from the power, heavy industry, aviation and maritime sectors, which together account for roughly 40% of total GHG in the EU. The new ETS2 will cover emissions from buildings, road transport and additional sectors.
Key Takeaways
- Europe has agreed a 90% emissions reduction target for 2040 but not without compromises
- Controversially, up to 5% of a nation's emissions target can be offset by purchasing international carbon credits from non-EU countries
- The introduction of the revamped EU Emissions Trading System (ETS) - ETS2 - which tracks emissions from Europe's biggest polluters has been delayed by a year to 2028.
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