The EU has unveiled its updated Nationally Determined Contribution (NDC). The 27 member states agreed to reduce greenhouse gas (GHG) emissions by 66.25% to 72.5% by 2035, compared to 1990 levels (EU press release, 05/11/2025).
They also set a target to cut net emissions by 90% by 2040, again relative to 1990, with the aim of achieving climate neutrality by 2050. The 2035 NDC is not legally binding, while the 2040 target is. It includes an "adequate contribution of high-quality international credits under Article 6 of the Paris Agreement"
To secure support from member states, certain concessions were made, including a one-year delay for the start of the second carbon market (ETS2), which will cover housing and transport, and provisions allowing vehicles using low-carbon fuels to be sold beyond 2035, despite the planned end of new combustion engine car sales that year.
The agreement is still subject to approval by the European Parliament.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.