ChatGPT saidBrussels, 2 July 2025 – The European Commission has formally proposed an amendment to the EU Climate Law, setting a legally binding target to reduce net greenhouse gas emissions by 90% by 2040 compared to 1990 levels. The target, part of the Union’s wider climate neutrality objective for 2050, marks a significant policy shift by allowing, for the first time, the limited use of international carbon credits to meet EU climate goals.:Brussels, 2 July 2025 – The European Commission has formally proposed an amendment to the EU Climate Law, setting a legally binding target to reduce net greenhouse gas emissions by 90% by 2040 compared to 1990 levels. The target, part of the Union’s wider climate neutrality objective for 2050, marks a significant policy shift by allowing, for the first time, the limited use of international carbon credits to meet EU climate goals.
Brussels, 2nd July 2025 – The European Commission has formally proposed an amendment to the EU Climate Law, setting a legally binding target to reduce net greenhouse gas emissions by 90% by 2040 compared to 1990 levels.
The target, part of the Union’s wider climate neutrality objective for 2050, marks a significant policy shift by allowing, for the first time, the limited use of international carbon credits to meet EU climate goals.
Brussels, 2 July 2025 – The European Commission has formally proposed an amendment to the EU Climate Law, setting a legally binding target to reduce net greenhouse gas emissions by 90% by 2040 compared to 1990 levels. The target, part of the Union’s wider climate neutrality objective for 2050, marks a significant policy shift by allowing, for the first time, the limited use of international carbon credits to meet EU climate goals.
Unveiled in Brussels by European Commissioner for Climate Action Wopke Hoekstra, the proposal comes amid what the Commissioner described as an “extremely difficult” geopolitical context. “It makes sense from an economic, a security, and also a geopolitical standpoint, to make sure that we stay the course on climate,” Hoekstra stated. “It is about protecting our people from extreme weather events.”
The proposed amendment follows the EU’s 2030 benchmark, which sets a 55% reduction in net emissions. The 2040 target is designed as an intermediate milestone on the path to full climate neutrality by mid-century. However, in contrast to previous climate targets, which have relied solely on domestic emissions reductions, the new framework includes provisions for up to 3% of the reduction to be achieved through carbon credits from projects in non-EU countries.
These international offsets, available from 2036 onwards, must comply with forthcoming EU legislation due in 2026, which will outline quality standards and eligibility conditions. The credits are expected to be sourced through UN-approved mechanisms, such as reforestation and emissions reduction projects in developing nations.
The introduction of foreign offsets follows pressure from several Member States, including France, Germany, Italy, Poland, and the Czech Republic, to ease the burden on European industries. The European Commission has presented this flexibility as a compromise, aiming to balance environmental ambition with economic feasibility.
Nevertheless, the proposal has drawn criticism from both environmental advisers and national governments. The European Scientific Advisory Board on Climate Change, which had recommended a 90–95% reduction based entirely on domestic efforts, warned that the inclusion of carbon credits risks diverting investment away from necessary transformations within the EU’s own economy.
Poland has expressed open opposition to the 2040 target. Government spokesperson Adam Szlapka described the proposal as “completely unrealistic”, arguing that “what Europe needs today is support for competitiveness and incentives, not actions of this kind.”
In contrast, Finland has declared its support for the target. Germany’s environment minister Carsten Schneider described it as a strong international signal, adding that it could encourage major global emitters such as China, India, Brazil, and South Africa to step up their own climate efforts.
Climate change has made Europe the fastest-warming continent, with recent heatwaves and wildfires reinforcing the urgency of action. The Commission maintains that the 2040 target provides legal certainty and investment signals for European industries, particularly in energy, transport, and manufacturing.
The legislative proposal now moves to the European Parliament and the Council of the EU, where it will undergo the ordinary legislative procedure. Adoption requires the approval of a reinforced majority of Member States.
In addition to the 2040 target, the Commission has indicated that it will propose a new EU climate target for 2035 by mid-September, in line with UN requirements. This interim target will be derived from the newly proposed 2040 trajectory.
The revised Climate Law will also offer Member States greater flexibility in determining sectoral contributions. Countries facing shortfalls in natural carbon sinks, such as underperforming forests, will be allowed to compensate through more rapid emissions cuts in other areas, such as road transport or industry.
Despite concerns about the reliability of some international carbon credit schemes, the Commission insists that robust oversight mechanisms will be put in place to ensure environmental integrity. Previous criticism of carbon credit schemes—particularly regarding exaggerated or unverifiable emissions savings—has prompted calls for strict quality control in any future EU framework.
If adopted, the proposal will cement the EU’s position as one of the most ambitious global actors on climate policy. However, the inclusion of offsets, political divisions among Member States, and the economic pressure from global competition and energy costs suggest that negotiations in the coming months will be closely contested.
