Council adopts its position on the 2040 climate target

On 5 November 2025, the Council agreed its position on the revision of the European Climate Law (ECL), setting a binding intermediate target for 2040 to reduce net greenhouse gas (GHG) emissions by 90% compared to 1990 levels. This new target marks a significant milestone on the EU’s path toward achieving climate neutrality by 2050.

The Council has maintained the 90% reduction of net GHG emissions by 2040 proposed by the Commission, but made some changes to address competitiveness concerns, ensure a fair and balanced transition, and account for uncertainties in natural removals.

Scope for flexibility for the member states

To accommodate national circumstances, the Council introduced flexibility mechanisms, including:

• Possible 5% contribution from international cardon credits;
• Recognition of domestic permanent carbon removals under the EU emissions trading systems (ETS);
• Enhanced flexibility within and across sectors and instruments, allowing more adaptable implementation strategies.

Elements for the post-2030 framework

The Council further explains the main principles and conditions that must be taken into account in developing the post-2030 framework to enable Member States to achieve the 2040 target. Among others, the focus will be on:

• Reducing administrative burdens and improving EU competitiveness;
• Ensuring a just transition, accounting for differing national capacities;
• Supporting investment and innovation to make low-carbon technologies accessible across all Member States;
• Strengthening energy security by prioritizing renewable energy and resilient supply systems.

Review of the target

The Council introduces the idea of a biennial assessment, meant to track progress toward the 2040 goal, identifying challenges and opportunities for improvement, while taking into account energy price developments.

Based on these reviews, the European Commission may propose revisions of the climate law or additional measures to reinforce the enabling framework.

ETS2 postponement

The EU emissions trading system for buildings and road transport (ETS2) will be delayed by one year, moving its start date from 2027 to 2028.

Next steps

• The European Parliament to adopt its position;
• Council and European Parliament to find an agreement.

More information

Link to the Council Press Release: link