After months of intense negotiations and political manoeuvring the European Parliament and the Council have come to a decision on the EU's 2040 climate target.
The agreement reached on Tuesday evening (9 December) includes a 90-percent reduction of greenhouse gas emissions, compared with 1990 levels.
The final agreement is weaker than the EU Commission's original proposal, as member states secured the right to use international CO2 certificates for up to five-percentage points of their reduction target.
The EU emissions trading system for buildings, road transport and small industry (ETS2) was postponed by one year, from 2027 to 2028. Governments feared that applying the system earlier would lead to higher costs for consumers.
Every two years the commission will assess the progress made by national capitals to achieve the 2040 goal.
Environmental data will be analysed together with energy prices and consequences for businesses and households. The co-legislators stated they “believe the green transition and improving EU competitiveness go hand-in-hand”.
And if necessary, the commission has the option to propose amendments to the climate law.
According to the EU’s independent Scientific Advisory Board on Climate Change, the target marks an important milestone — but noted that the possibility to use international carbon credits of up to five percent of 1990 EU emissions would "effectively lower domestic reductions" to 85 percent by 2040.
This could hinder the EU from achieving climate neutrality by 2050.
According to the EU Climate Law, a proposal for the 2040 target should have been presented by the commission back in June 2024.
After a long delay the proposal came in July 2025.
The 2040 strategy would have been key to prepare the EU’s official position for the COP30 climate summit in Brazil, which took place in November.
Several member states voiced their concern with the target, amid budget pressures in many countries due to defence spending and economic difficulties.
In the council, the current Danish presidency sought to adopt a general approach at the 18 September environment council meeting but instead requested political direction from the heads of state in the European Council (EUCO).
After EUCO adopted a general conclusion on 23 October, an extraordinary environment council meeting approved the general approach on 5 November.
In parliament, the centre-right European People's Party, Socialists and Democrats, the liberal Renew Europe, and the Greens agreed on a fast-track timeline aiming for a vote at the 1 October plenary.
But after presenting the draft on 4 September, with an amendment’s deadline of 8 September, the committee's vote (originally scheduled for 23 September) was postponed twice at the EPP's request due to council delays.
A final position of the parliament was adopted in plenary on 12 November.
The provisional agreement reached by negotiators on Tuesday must still be formally approved by the full parliament and endorsed by the Council.
Both steps are expected to be formalities. Once complete, the new law can enter into force.
Every month, hundreds of thousands of people read the journalism and opinion published by EUobserver. With your support, millions of others will as well.
If you're not already, become a supporting member today.
Hannah Kriwak is a junior reporter from Austria at EUobserver, covering European politics.
Hannah Kriwak is a junior reporter from Austria at EUobserver, covering European politics.