On July 2, 2025, the European Commission proposed an amendment to the European Climate Law, setting the EU's 2040 climate target of reducing net greenhouse gas (GHG) emissions by 90% compared to 1990.

The proposal is consistent with the EU Competitiveness Compass, the Clean Industrial Deal and the Affordable Energy Action Plan, taking into account the current economic, security and geopolitical landscape, and providing investors and companies with the predictability and stability they need in the EU's clean energy transition.

Under the European Climate Law (which came into force in 2021), the EU is committed to achieving climate neutrality by 2050 and has set a target of at least 55% emissions reduction by 2030. The proposal was made within 6 months of the first global stocktake of the Paris Agreement (December 2023), in compliance with legal requirements.

At the international level, the EU needs to submit an updated Nationally Determined Contribution (NDC) under the Paris Agreement before the United Nations Climate Change Conference (COP30) in Brazil in November 2025.

The amendment to the European Climate Law also responds to the strong support of European citizens for climate action. According to the Climate Eurobarometer released on June 30, 2025, 85% of EU citizens believe that climate change is a serious problem, and 81% of EU citizens support the EU's goal of achieving climate neutrality by 2050.

To ensure that the goals can be achieved smoothly, the European Commission has introduced a number of flexible policies, such as allowing member states to use international carbon credits to a limited extent from 2036, up to 3% of 1990 emission levels; incorporating permanent carbon removal technologies into the EU carbon emissions trading system to offset some carbon emissions; and providing greater flexibility between economic sectors, such as member states can use emission reduction quotas in the transportation or waste treatment sectors to make up for insufficient emission reductions in other sectors.

In addition, the European Commission has published proposals for tax incentives, including accelerated depreciation and tax credits, aimed at encouraging investment in clean technologies and industrial decarbonization.

Commission President, Ursula von der Leyen, said: “As European citizens increasingly feel the impact of climate change, they expect Europe to act. Industry and investors look to us to set a predictable direction of travel. Today we show that we stand firmly by our commitment to decarbonise European economy by 2050. The goal is clear, the journey is pragmatic and realistic.”

Author：Qinger