The European Parliament has approved a law to make climate neutrality mandatory by 2050 in both EU and member states and to achieve "negative emissions" after 2050. In addition, the parliament recommends reducing greenhouse gas (GHG) emissions by 60% in 2030 compared to 1990, instead of the current 40% emission cut target for 2030 and instead of “at least 55%”, as the European Commission proposed. It also requires an interim target for 2040 to ensure the EU is on track to reach its 2050 target. The EU and member states must also phase out all direct and indirect fossil fuel subsidies by 31 December 2025 at the latest. The text must still be approved by the European Council, which regroups the 27 EU members state, before passing into law.
In September 2020, the European Commission proposed to raise the 2030 target for GHG emissions reduction from 40% to at least 55% compared to 1990, which would put the regional bloc on track for meeting its Paris Agreement obligations and for climate neutrality by 2050. In addition, the executive branch of the European Union plans that 30% of the €750bn EU budget for the 2021-2027 period will be raised through green bonds and 37% of the funding will be invested in European Green Deal objectives, including ‘lighthouse' European projects – hydrogen, green building, and 1 million electric charging points.