EU Negotiators Agree on 90% Net Emissions Cut Target for 2040

Negotiators for the European Parliament and the EU Member States concluded a provisional political agreement on Wednesday, December 10, 2025, establishing a new, legally binding climate milestone for the bloc. This agreement amends the European Climate Law to mandate a 90% net reduction in greenhouse gas emissions by 2040, measured against 1990 levels. This target serves as a significant intermediate step toward the Union's overarching goal of achieving net-zero emissions by 2050.

The European Commission, which originally proposed this target in July 2025, acknowledged the outcome as confirmation of a strong commitment to climate action and a pragmatic plan for the clean energy transition. The final text incorporates flexibility mechanisms that reflect internal political compromises necessary to secure consensus among Member States with differing economic priorities. Specifically, the deal allows up to 5% of the required reduction to be met through the purchase of high-quality international carbon credits, a provision that is two percentage points higher than the Commission's initial suggestion.

This allowance means the actual domestic emissions cut could theoretically be 80% if both available flexibility options are fully utilized. Several Eastern European nations, including Poland, Slovakia, and Hungary, had expressed concerns that more stringent domestic cuts would strain industries facing high energy costs and international competition. Conversely, countries such as Spain, Sweden, and the Netherlands had advocated for a more demanding target.

To further address concerns over immediate economic impact on households, the implementation of the EU Emissions Trading System for buildings and road transport, known as ETS2, has been postponed by one year, moving its launch from 2027 to 2028. This delay was a key demand from countries seeking to mitigate potential social backlash related to rising fuel and heating costs. Despite the postponement of its full operation, the monitoring, reporting, and verification requirements for ETS2 commenced in 2025.

Lars Aagaard, the Danish Minister for Climate who negotiated on behalf of the EU governments, stated that the final agreement balances necessary climate action with safeguarding the bloc's competitiveness and security. The agreement now requires formal endorsement from both the European Parliament and the Council to officially enter into force. The European Scientific Advisory Board on Climate Change had previously recommended a fully domestic reduction target between 90% and 95%, indicating the agreed target, with its offset allowance, is less stringent than scientific advice suggested. This finalized 2040 milestone is also essential for shaping the EU's updated Nationally Determined Contribution (NDC) ahead of COP30 in Brazil.