EU Sets New 2040 Climate Target with Flexibility

On July 2, 2025, the European Union (EU) revealed its much-awaited plan to reduce greenhouse gas emissions by 90% by 2040, compared to 1990 levels. The plan is part of the EU’s bigger goal to become carbon neutral by 2050. However, to get support from all countries, the EU added some flexibility to the plan, which has sparked debate.

The New Climate Target and Its Purpose

The European Commission confirmed that the 2040 climate goal remains the same as previously proposed: a 90% cut in emissions. This is a step toward the EU’s main target of net-zero emissions by 2050, meaning the region will no longer add more greenhouse gases than it removes. This plan is important because Europe is currently experiencing heatwaves caused by climate change, which scientists say will become more frequent and dangerous in the future.

Flexibility in the Plan Raises Concerns

To win support from some member countries that are unsure about the target, the plan allows them to use carbon credits—starting from 2036—to cover up to 3% of their emission cuts. These credits would be used to finance climate-friendly projects outside Europe, like tree planting or renewable energy.

This idea has upset climate groups, who say it creates a loophole and takes away focus from cutting emissions inside Europe. Groups like WWF EU and experts such as Neil Makaroff warn that this move may weaken Europe’s green efforts and shift investment away from the continent.

Challenges and Political Reactions

Some countries like the Czech Republic feel the 90% goal is too hard to reach. Others, including Italy and Hungary, are worried about the cost of reducing pollution in heavy industries, especially at a time when Europe is trying to stay strong against competition from China and the US.

Still, EU climate chief Wopke Hoekstra said that while the plan is “ambitious,” it also tries to be realistic and flexible. EU President Ursula von der Leyen added that this move proves the EU is serious about fighting climate change.

The plan will now be discussed by EU environment ministers in mid-July, and a vote is planned for September 18. Approval from EU lawmakers, especially from the centre-right EPP group, will be needed. The EU hopes the plan will be accepted before the COP30 climate summit in Brazil this November.