The European Commission has proposed a major revision to its EU Climate Law, introducing a new 2040 target to reduce net greenhouse gas emissions by 90% compared to 1990 levels. The move aims to provide clarity for investors, bolster EU industrial competitiveness, and strengthen energy security across the bloc.
Announced on 2nd July, the new legislative proposal is described by the Commission as a pragmatic yet ambitious step forward on the path to the EU’s legally binding goal of climate neutrality by 2050. The EU is already on track to achieve its 2030 interim target of a 55% reduction in emissions. The 2040 milestone is designed to help maintain momentum while adapting to ongoing economic, security and geopolitical challenges.
According to a recent survey, public support for climate action remains high: 85% of Europeans believe climate change is a serious issue, and 81% back the EU’s 2050 net-zero target. The revised climate law intends to reflect this mandate by promoting stronger enabling conditions for the transition—such as investment in innovation, clean industrial transformation, and energy affordability.
Climate and competitiveness go hand in hand
The proposed 2040 target is closely aligned with broader EU strategies including the Clean Industrial Deal, the Affordable Energy Action Plan, and the EU Competitiveness Compass. The Commission also released a Communication detailing the first wave of actions under the Clean Industrial Deal, intended to help industries decarbonise while remaining globally competitive.
The revised law incorporates findings from the Intergovernmental Panel on Climate Change (IPCC) and guidance from the European Scientific Advisory Board on Climate Change. It underlines the importance of science-based policymaking as the EU seeks to lead by example on climate leadership.
Legislative next steps
The Commission’s proposal will now move to the European Parliament and the Council under the ordinary legislative procedure. If adopted, the 2040 target will not only shape the EU’s future environmental legislation but also provide a benchmark for the post-2030 policy framework.
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Photo credit: Markus Spiske, Unsplash