EU Climate Law: a binding target to reduce emissions by 90% by 2040, with new and enhanced flexibilities

Negotiators from European Parliament and European Council "reached a provisional political agreement on an amendment to the EU Climate Law, setting a new, intermediate and binding 2040 EU climate target of reducing net greenhouse gas (GHG) emissions by 90% compared to 1990 levels", announced the co-legislators on 10/12/2025.

According to the Danish Presidence of the Council, "this new target is a crucial step towards the EU's long-term goal of achieving climate neutrality by 2050". This target of 90% is "made up of domestic target of 85% and up to 5% of [high-quality] international carbon credit" (+2 percentage points more than initially proposed by the Commission), Commissioner for Climate, net zero and clean growth Wopke Hoekstra explained.

Different options will be analysed by the Commission "for the role of international credits in the upcoming EU climate legislation and made a statement recalling the need to ensure the stability of the EU ETS".

Following a "push from Parliament", the text has also incorporated "further safeguards to the international carbon credits including the…