Overview

• The amendment to the EU Climate Law sets a binding 90% reduction in greenhouse gas emissions by 2040 compared with 1990 levels
• From 2036 member states may count up to 3% of their net emissions through purchases of international carbon credits under Paris Agreement rules
• The proposal integrates permanent carbon removal mechanisms into the EU emissions trading system to support hard-to-abate industries
• Critics including Italy’s Lega and Greenpeace Europa warn that the flexibilities risk creating loopholes that could weaken actual emission cuts and harm industrial competitiveness
• Next steps call for formal approval by the European Parliament and EU Council before the target enters into force and informs the bloc’s 2035 commitment at COP30