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EU sets binding 90% emissions reduction target for 2040
18/2/2026
News
The European Union (EU) has agreed on a binding target to cut greenhouse gas emissions (GHGs) by 90% from 1990 levels by 2040, while expanding how member states can use carbon credits.
Members of the European Parliament (MEP) have approved a deal with the European Council to update the EU Climate Law, with 413 votes in favour, 226 against and 12 abstentions.
Under the revised law, EU countries would be allowed to meet part of the 2040 goal using ‘high-quality’ international carbon credits bought from partner countries. From 2036, up to 5% of the required emissions cuts can come from those credits – 2% more than the European Commission (EC) originally proposed in July 2025.
The deal also allows permanent carbon removals within the EU to offset emissions that are hard to cut in sectors covered by the EU Emissions Trading System (ETS) and increases flexibility across sectors and policy tools to meet targets at lower cost.
The introduction of ETS2 – which will cover CO2 emissions from fuel combustion in buildings and road transport – will be postponed by one year, from 2027 to 2028.
The statement said that progress towards the 2040 target would be assessed by the EC every two years, taking into account updated scientific data and technological developments, as well as factors including energy price trends and industrial competitiveness.
Once the Council endorses the text, the changes will enter into force 20 days after publication in the EU Official Journal.
First adopted in 2021, the EU Climate Law sets a binding climate neutrality target for 2050, and a 2030 objective of reducing net emissions by at least 55% compared to 1990.
