On Thursday, Parliament adopted its position on the Commission’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.
Flexibility for member states
MEPs believe the green transition and improving EU competitiveness go hand in hand. They therefore agree with the Commission’s proposal to introduce new flexibilities in how these targets can be met.
From 2036, up to five percentage points of net emissions reductions could come from high-quality international carbon credits from partner countries, but Parliament wants assurances that this will be subject to robust safeguards. The Commission had proposed a cap of up to three percentage points.
MEPs also want the possibility for domestic permanent carbon removals to be used to compensate for hard-to-abate emissions in the EU emissions trading system (EU ETS) as well as enhanced flexibility within and across sectors and instruments to achieve targets that are as cost effective as possible.
Parliament supports a proposal by member states to postpone the introduction of the EU’s ETS2 by one year from 2027 to 2028. ETS2 covers CO2 emissions from fuel combustion in buildings and road transport.
Review of the 2040 target
Parliament wants the Commission to assess progress towards intermediate targets every second year, taking into account the most recent scientific data, technological developments, and the EU’s international competitiveness.
Among other aspects, the review will assess the status of net removals at the EU level compared with what is necessary to meet the 2040 goal, as well as emerging difficulties and the potential for enhancing EU industrial competitiveness. The review will also take into account trends in energy prices and their repercussions for both businesses and households.
Following the conclusions of the review, the Commission will propose an amendment to the EU climate law if appropriate. This could involve modifying the 2040 target or taking additional measures to strengthen the supporting framework – for instance to safeguard the EU’s competitiveness, prosperity, and social unity.
Next steps
The text was adopted by 379 votes to 248 and with 10 abstentions. Parliament is now ready to start negotiations with member states on the final shape of the law.
Background
The European Climate Law makes the goal of climate neutrality by 2050 a legally binding obligation for all EU member states. It also establishes a legally binding target for the EU to reduce net GHG emissions by at least 55% by 2030, compared to 1990 levels.
Setting an ambitious 2040 EU climate target is also important for the EU to deliver on the international climate commitments that are on the agenda of the 30th UN climate conference, which takes place from 10 to 21 November in Belém, Brazil. A Parliament delegation will attend from 17 to 21 November.
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