PRESS RELEASE: EU’s 2040 Climate Target: A pivotal step for climate action comes at a costly compromise

Brussels, 02 July 2025  – After years of deliberation, the European Commission has today presented the EU’s 2040 climate target – but it comes as a compromise. The proposal of a 90% emissions reduction target is a pivotal step towards the EU committing to domestic climate action, but falls short on the EU reaching net zero emissions by 2040 at the latest and is therefore not aligned with 1.5°C science and equity.

Moreover, the inclusion of international carbon credits risks undermining domestic climate action within the EU. Despite the EU being historically among the biggest emitters of greenhouse gas emissions over the last hundreds of years, it is now looking to buy its way out of its climate responsibility and put the burden onto the global south and historically lower-emitting countries, further exacerbating global inequality and only delaying the inevitable transition of the EU economy.

“While it falls short on ambition to align with the 1.5°C and equity, the Commission’s proposal for a 90% net emissions reduction by 2040 is a long overdue, pivotal step towards addressing the climate crisis. Unfortunately, the proposal is already coming as a costly compromise, with the Commission surrendering to the push from Member States and some Members of the European Parliament to include loopholes, such as International Carbon Credits. Ahead of COP 30, it is now critical that the EU delivers an NDC under the Paris Agreement with a 2035 target of domestic action not falling behind today’s proposal.” – Chiara Martinelli, Director of Climate Action Network Europe

“While the 90% emissions reduction does not match the stark climate reality that Europe and many parts of the globe now face, it is critical that EU policy makers build on the public and scientific consensus towards addressing the climate crisis. Buying reduction credits from other countries risks seriously undermining the EU’s credibility on climate leadership and sets a dangerous precedent that could weaken ambition globally. This goes against the advice of the European Scientific Advisory Board on Climate Change and would only further delay urgently needed domestic climate action. The fact that the Commission proposes to keep international credits out of the European carbon market is positive, but not much more than damage control.”  – Sven Harmeling, Head of Climate at Climate Action Network (CAN) Europe  

Moreover, including carbon dioxide removal measures in the EU ETS risks turning it into an offsetting mechanism rather than a tool for real emission cuts. It is unlikely to incentivise high-quality removals, and with the upcoming Carbon Removal and Carbon Farming Regulation methodologies’ weak standards, it risks becoming yet another policy tool fuelling biomass use at the expense of the already declining LULUCF sink.

Increasing flexibility between sectors, would also weaken incentives for progress in key sectors like transport, buildings, or agriculture. This undermines the core logic of economy-wide decarbonisation and delays action where it is needed most.

CAN Europe also strongly supports the pursuit of dedicated renewable energy and energy efficiency targets for the 2040 climate and energy framework, as highlighted in a new position paper. Renewable energy and related flexibility solutions such as storage, are the most cost-effective and fastest solution to achieve affordable energy prices, energy security as well as social and environmental benefits. CAN Europe therefore warns to not waste public money on  fossil gas, which ought to be phased out rapidly, or false solutions such as nuclear energy.

Explore this policy options paper that provides a brief overview of how the 2040 target should have been set, taking into account Europe’s historical responsibility and capacity to act. It also hints at some urgent policy steps constituting enabling conditions for its achievement.