The European Parliament has set a target of reducing emissions by 90% by 2040 compared to 1990 levels in order to achieve climate neutrality in the EU by 2050. On Thursday, it adopted its position on the Commission’s proposal to amend the European climate law.
The text was adopted by 379 votes in favour, 248 against and 10 abstentions. Parliament is now ready to start negotiations with member states on the final form of the legislation.
Flexibility for member states
MEPs believe that the green transition and improving the EU’s competitiveness go hand in hand. They therefore agree with the Commission’s proposal to introduce new flexibility on how these targets can be achieved.
According to Parliament, from 2036, up to five percentage points of net emission reductions could come from high-quality international carbon credits from partner countries, provided that strong safeguards are in place. The Commission had proposed a maximum of three percentage points.
MEPs also support the possibility of using domestic permanent carbon removals to offset emissions that are hard to reduce in the EU’s emissions trading system (ETS), as well as increasing flexibility both within and between sectors and instruments to achieve targets in the most cost-effective way.
Parliament supports the Member States’ proposal to postpone the entry into force of the EU ETS2 by one year, from 2027 to 2028. The ETS2 covers carbon emissions from fuel combustion in buildings and road transport.
Review of the target towards 2040
Parliament calls on the Commission to assess progress towards the interim targets every two years, taking into account the latest scientific evidence, technological developments and the EU’s international competitiveness.
Among other aspects, the review should assess the state of net removals at EU level compared to what is needed to achieve the 2040 target, as well as any emerging difficulties and the potential to strengthen the EU’s industrial competitiveness. The review should also take into account energy price trends and their impact on both businesses and households.
Following the conclusions of the review, the Commission may propose amendments to the EU climate legislation, where appropriate. This could include amending the 2040 target or taking additional measures to strengthen the support framework — for example, to ensure the EU’s competitiveness, prosperity and social cohesion.
The EU climate law makes the 2050 climate neutrality target a binding obligation for all EU Member States. It also sets a binding target for the EU to reduce net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.
