European Commission unveils 2040 EU climate target proposal
The European Commission proposed an amendment to the EU Climate Law setting a climate 2040 target to reduce net greenhouse gas (GHG) emissions by 90% compared to 1990 levels. For background, the European Climate Law entered into force in July 2021, enshrining the commitment to achieve climate neutrality by 2050, and requires the Commission to propose a new target for 2040.
According to the latest Commission's assessment of the National Energy and Climate Plans (NECPs), the EU is closing in collectively on the 55% reduction target for 2030 set by the 'Fit for 55’ legislation. Moreover, the latest Eurobarometer showed strong citizens support for climate action: 85% of EU citizens consider climate change a serious problem and 81% support EU’s objective of climate neutrality by 2050.
Based on several consultations, the focus of the proposal is on flexibilities in the tools to meet the targets. These include a possible limited role for high-quality international credits starting from 2036, the use of domestic permanent removals in the EU Emissions Trading System (EU ETS) and greater flexibilities across sectors.
The Commission also provided an overview on delivering the first proposals on the Clean Industrial Deal, where key future deliveries will be to invest further in the clean energy transition through the Clean Industrial Deal State Aid Framework and to simplify the Carbon Adjustment Mechanism. To complement this framework, the Commission issued a Recommendation on Tax Incentives to encourage investments in clean energies and industrial decarbonisation and a recommendation and guidance documents for optimising the use of new EU renewables rules.
Impact on hospitality
The targets are horizontal and impact all sectors, including hospitality. Main objectives include decarbonisation; energy efficiency; use of renewables.
Next Steps
The proposal will now be submitted to the European Parliament and the Council for negotiations. The proposed 2040 target will set the key benchmark for designing the post-2030 climate policy framework, drawn on consultations with stakeholders and citizens, impact assessments and lessons learned from the 2030 framework.
The Commission will give further information on its proposals in the Commission Work Programme 2026, its publication scheduled for the end of 2025.
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