DAILY NEWS
Brussels, 02 July 2025
EU's Climate Law presents a new way to get to 2040
The European Commission today proposed an amendment to the EU Climate Law, setting a 2040 EU climate target of 90% reduction in net greenhouse gas (GHG) emissions, compared to 1990 levels, as requested by the Commission Political Guidelines for 2024-2029. It will give certainty to investors, innovation, strengthen industrial leadership of our businesses, and increase Europe's energy security. Just this week, the latest Eurobarometer showed strong citizens support for EU climate action, providing a solid mandate to stay the course of the EU's clean transition agenda. The EU is well on track to meet our 2030 target of 55%. Today's proposal builds on the EU's existing legally binding goal of reducing net GHG emissions by at least 55% by 2030, and sets out a more pragmatic and flexible way to reach the target, with a view towards a decarbonised European economy by 2050.
Aligned with the EU Competitiveness Compass, Clean Industrial Deal and Affordable Energy Action Plan, the proposed 2040 climate target takes fully into account the current economic, security and geopolitical landscape and gives investors and businesses the predictability and stability they need in the EU's clean energy transition. By staying the course on decarbonisation, the EU will drive investment in innovation, create more jobs, growth, increase our resilience to impacts of climate change and become more energy independent.
Commission President, Ursula von der Leyen, said: “As European citizens increasingly feel the impact of climate change, they expect Europe to act. Industry and investors look to us to set a predictable direction of travel. Today we show that we stand firmly by our commitment to decarbonise European economy by 2050. The goal is clear, the journey is pragmatic and realistic.”
Today's proposal is based on an in-depth impact assessment and advice from the Intergovernmental Panel of Climate Change and the European Scientific Advisory Board on Climate Change. The adoption follows substantial engagement with Member States, the European Parliament, stakeholders, civil society and citizens, launched with the Commission's recommendation on the target in February 2024.
Based on these consultations, the proposal sets out a way to reach the 2040 goal in a different way that has been done in the past. One central element is flexibilities that the Commission will consider in designing the future legislative instruments to achieve this 2040 climate target. These include a limited role for high-quality international credits starting from 2036, the use of domestic permanent removals in the EU Emissions Trading System (EU ETS), and greater flexibilities across sectors to help achieve targets in a cost-effective and socially fair way. Concretely, this could give a Member State the possibility to compensate for the struggling land use sector with an overachievement on reducing emissions on waste and transport.
The Commission proposal emphasises the importance of accelerating and strengthening the right enabling conditions to support this 90% target. These include a competitive European industry, a fair transition that leaves no one behind, and a level playing field with our international partners.
In addition, the proposal sets a clear frame for our post-2030 climate and energy legislation. National specificities will be taken into account. Cost-effectiveness, simplicity and efficiency will be guiding principles, together with ensuring technological neutrality and a transition that is fair and just for everybody.
Delivering the Clean Industrial Deal for the 2040 climate target
The Commission published today a Communication on delivering the first proposals on the Clean Industrial Deal, only a few months after it was presented. As the EU's Compass for ensuring competitiveness and decarbonisation go hand in hand, its implementation is crucial towards the 2040 climate target. Today's Communication provides an overview of the first wave of actions delivered, progress made and remaining measures to come.
One of the key deliveries is the Clean Industrial Deal State Aid Framework, adopted last week, to further support investment in the clean energy transition. The simplification of the Carbon Border Adjustment Mechanism (CBAM) was also agreed, exempting 90% of importers, thus reducing red tape and ensuring smooth implementation. This simplification is the first step before a more general CBAM review at the end of the year, accompanied by legislative proposals to strengthen the mechanism. Today's Communication outlines the results of the Commission analysis on how to provide a solution to the export carbon leakage.
Complementing the State aid framework and today's Communication, the Commission also issued the Recommendation on Tax Incentives to encourage investments in clean technologies and industrial decarbonisation, through measures like accelerated depreciation and tax credits. It also presented a recommendation and guidance documents for optimising the use of new EU renewables rules aiming at expanding renewables and cutting energy costs.
Measures on affordable energy to scale up manufacturing of grid components and support Power Purchase Agreements, the pilot for the upcoming Industrial Decarbonisation Bank, the forthcoming Chemicals Industry Action Plan and the sectorial dialogues with stakeholders are among the actions that will help deliver the Clean Industrial Deal. Expected later this month, the proposals for the next Multiannual Financial Framework will also set out how the future EU budget will support the clean transition.
Setting 2040 EU climate target to deliver international climate commitments
With the proposed 90% target, the EU is also sending a signal to the global community: it will stay the course on climate change, deliver the Paris Agreement and continue engaging with partner countries to reduce global emissions.
Ahead of the UN Climate Change Conference (COP30) in Belém (Brazil) in November, the Commission will now work with the Council Presidency to finalise the communication of the EU's Nationally Determined Contribution (NDC).
Next Steps
The Commission's proposal setting a 2040 climate target will now be submitted to the European Parliament and the Council for discussion and adoption under the ordinary legislative procedure.
A future agreed EU climate target will also serve as a benchmark for the post-2030 EU policy framework that will be developed thereafter.
Background
The European Climate Law, which entered into force in July 2021, enshrines in legislation the EU's commitment to reach climate neutrality by 2050 and the intermediate target of at least 55% net GHG emissions reduction by 2030, compared to 1990 levels. To meet its agreed decarbonisation objectives, the EU has since adopted a 2030 legislative package known as ‘Fit for 55' and its implementation by EU Member States – essential for delivering on 2040 – is ongoing. The Commission's assessment of the National Energy and Climate Plans (NECPs), presented on 28 May, showed that the EU is closing in collectively on the 2030 climate target of 55% GHG emissions reduction.
The Climate Law legally requires an intermediate 2040 climate target to set the pace towards climate neutrality – a proposal that is needed within six months of the first Global Stocktake of the Paris Agreement, achieved in December 2023.
For More Information
Questions & Answers
Factsheet
Proposal for a 2040 EU climate target
Staff working document
European Climate Law – policy page
Commission recommendation on the 2040 EU climate target
Public Consultation on the 2040 climate target
Impact Assessment on the 2040 climate target
2040 climate target – policy page
Quote(s)
As European citizens increasingly feel the impact of climate change, they expect Europe to act. Industry and investors look to us to set a predictable direction of travel. Today we show that we stand firmly by our commitment to decarbonise European economy by 2050. The goal is clear, the journey is pragmatic and realistic.
Ursula von der Leyen, President of the European Commission
Agreeing on the 90% climate target provides us with a clear lighthouse to guide our future actions. We are responding to Europeans who remain strongly in favour of climate action. That is why today we decided to continuing with our climate policies as they are pivotal to achieving other social and economic policy goals, such as security and prosperity of our people and companies. We are not choosing between the economy and the green agenda, we are choosing both. Europe reaffirms its commitment to a fair, ambitious, and competitive green transition.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition
With our 2040 target, we are staying the course on the clean transition. We know why we’re doing it – for economic, security and geopolitical reasons. And we have a plan for how to make it work – a strong enabling environment, the Clean Industrial Deal and three impactful flexibilities. It gives industry and Member States a clear direction and supports their investment plans, while ensuring that Europe stays firmly on track to reach climate neutrality by 2050. It will be good for EU citizens, businesses and our global competitiveness. It’s also an important tool in the EU’s international diplomacy work to cut emissions and develop carbon markets under the Paris Agreement.
Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth
Key actions launched to advance the circular economy
Today, the Commission launched several initiatives to accelerate the EU's transition to a circular economy and prepare the ground for the Circular Economy Act, expected in 2026. Circular economy enhances competitiveness and economic growth by promoting the reuse, recycling and remanufacturing of materials. The forthcoming Act will support the EU's goals under the Competitiveness Compass and the Clean Industrial Deal to double the share of recycled material in EU's economy and become a global leader in circular economy by 2030.
A strategic dialogue on circularity will take place today, accompanied by a package of new actions. The initiatives adopted today include the rules on waste shipments and an evaluation of electronic waste legislation. In addition, new rules to improve recycling efficiency and material recovery from waste batteries will be published in the next days. The dialogue will also kick off a public consultation with stakeholders and call for evidence to be launched soon. These new actions touch on different dimensions of the circular economy and will help to boost the transition and strengthen implementation of existing legislation.
Digitalisation and classification of waste shipments
The Commission will implement a Digital Waste Shipment System. This will enable companies to move from paper to digital procedures for shipping waste across the EU single market, reducing administrative burden and contributing to competitiveness. This will streamline cross-border shipments of waste within the EU, while protecting human health and the environment. From 21 May 2026, digital systems will fully replace paper procedures, simplifying operations, improving traceability, and curbing illegal shipments. By digitalising these procedures, waste will be recycled at the most efficient facilities across Member States.
In parallel, the Commission launched a public consultation on harmonising the classification of certain waste types (so-called “green-listed” waste) to facilitate their shipments across borders. The consultation is accessible through the 'Have Your Say' portal until 31 October 2025.
Evaluation of Waste Electrical and Electronic Equipment Directive
Today, the Commission published an evaluation of the Waste Electrical and Electronic Equipment (WEEE) Directive. The WEEE is critical to address the growing challenges in e-waste management and to better align EU rules with the objectives of a competitive circular economy. Key gaps were identified, such as the fact that nearly 50% of all e-waste remains uncollected, and recycling falls short of collection targets in EU Member States. Electronic waste is one of Europe's fastest-growing waste streams, increasing by about 2% annually. There is a lot of potential to better make use of e-waste, for example by recovering and recycling critical raw materials and strengthening the circular economy. The evaluation moreover highlights the need for a new approach to improve collection, treatment, and market incentives, and will help prepare the Commission's proposal to revise the WEEE Directive. This revision will be a central component of the future Circular Economy Act.
Next steps
Feedback from today's dialogue, the consultations, and the WEEE Directive evaluation will guide the development of the Circular Economy Act and advance the EU's shift toward a circular economy.
In addition, later this week, the Commission intends to adopt new rules to improve recycling efficiency and the recovery of materials from batteries.
Further consultation with stakeholders will be undertaken through a public consultation process.
EU manufacturing companies typically spend more than twice as much on materials as on labour or energy. Many EU businesses also rely on imports of critical materials from third countries, making them vulnerable to price volatility and supply shortages. Circular practices that promote resource efficiency, design, and recycling can reduce these risks while lowering costs. Moreover, circular solutions are vital to achieving climate neutrality by 2050, as they can deliver 20-25% of the necessary greenhouse gas emissions reductions.
News item on Digital Waste Shipment System
Implementing Regulation on the digitalisation of waste shipments procedures
Annex to the Implementing Regulation on the digitalisation of waste shipments procedures
Public Consultation on classification of waste to facilitate their shipments for recycling in the EU
News item on evaluation of the WEEE Directive
Staff Working Document on the evaluation of the WEEE Directive
Executive summary on the evaluation of the WEEE Directive
Support study for the evaluation of the WEEE Directive
Public consultation on WEEE Directive (closed)
Eurostat - Waste statistics - electrical and electronic equipment
Clean Industrial Deal | European Commission
Competitiveness compass - European Commission
We need to seize the transition to a circular economy as an opportunity for Europe to lead in innovation and competitiveness, and high environmental standards. As we shape the Circular Economy Act, we want input from businesses, citizens and other stakeholders to embed circularity across our society and economy.
Jessika Roswall, Commissioner for Environment, Water Resilience and a Competitive Circular Economy