Entered into force in July 2021, the EU Climate Law is the EU legislation which aims to fulfil EU’s commitment to global climate action under the Paris Agreement. The Regulation establishes a framework for achieving climate neutrality in the EU by 2050, with intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.
Following a Communication in February 2024, the European Commission (EC) launched the process of preparing an intermediate target for 2040 towards the 2050 neutrality target. The outcome of this work was published on 2 July 2025, with the proposed amendment to the EU Climate Law. The proposal aims to set an EU climate target of 90% reduction in net greenhouse gas emissions by 2040.
Among other provisions, the proposal introduces the possibility to use flexibilities in how the targets can be met. For a maximum 3% of the total target, high quality international carbon credits are allowed to be accounted for the funding state from 2036 onwards, which might result in some land-based carbon removals also moving out of the EU to third countries.
Moreover, the proposal foresees that the EC will assess how the relevant Union legislation, among which the LULUCF Regulation, would need to be amended in order to achieve the 2040 climate target. This is in line with the consultation work on a revision of the LULUCF which has already started.
The co-legislators, the European Parliament and the Council, will now work on the proposal under the ordinary legislative procedure.
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