Following a parliamentary vote, the EU must reduce GHG emissions by 90% by 2040 compared to 1990 levels to achieve climate neutrality by 2050 (European Parliament statement, 10/02/2026).
This vote followed a December 2025 agreement between Parliament and the European Council, which introduced flexibilities into the Climate Law, including the use of international carbon credits for up to 5% of GHG reductions and reviews every two years that could adjust the target based on energy prices, technological progress, competitiveness, prosperity, and social cohesion.
The text also allows domestic permanent carbon removals to offset hard-to-abate ETS emissions, enhances flexibility across sectors and instruments for cost-effectiveness, ensuring the green transition supports EU competitiveness, and postpones ETS2 (covering CO2 from buildings and road transport) from 2027 to 2028.
The European Climate Law already establishes climate neutrality by 2050 and a 55% net GHG reduction by 2030 (vs. 1990) as legally binding obligations for all member states.
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