EU Parliament Approves 90 Percent Emissions Reduction Target for 2040

The European Parliament has voted 413 to 226 to adopt amendments to the EU Climate Law requiring the European Union to reduce greenhouse gas emissions by 90% by 2040 compared to 1990 levels. The agreement includes flexibilities such as allowing international carbon credits to cover up to 5% of the required reductions and mandating a review every two years.

The 2040 target was proposed by the European Commission in July 2025 and follows the EU's current interim target to reduce net GHG emissions by at least 55% by 2030. The Commission has reported the EU has already achieved a 37% GHG emissions reduction as of end 2023 on a 1990 basis and is nearly on track for 2030. The new agreement allows international carbon credits under Paris Agreement Article 6 to contribute up to 5% of the 90% reduction target from 2036, effectively requiring domestic reductions of at least 85% by 2040.

Key flexibilities included in the agreement to secure support from member states concerned about competitiveness and economic impact include the expanded role for international carbon credits and biennial reviews with the ability to modify the 2040 target based on scientific data, technological developments, energy prices, net removals, and international competitiveness. The agreement also delays the launch of ETS2 — the expansion of the EU Emissions Trading System to new sectors including road transport and buildings — by one year from 2027 to 2028.

The vote marks a significant milestone in European climate legislation, though the amendments to the Climate Law still need approval from EU member states in the Council before entering into force. The ETS2 delay and flexibility provisions reflect political negotiation with member states facing industrial competitiveness concerns. The new 2040 target gives the EU's climate framework continuity from its 2030 goal toward the 2050 climate neutrality objective, though the flexibilities introduced will shape how much domestic action is ultimately required.

Key figure — 413 to 226 vote