02. 07. 2025
AUTHOR: Strategic Perspectives
The European Commission has proposed a net 90% climate target for 2040 with the inclusion of international credits, confirming its commitment to climate neutrality by 2050. This target provides a clear direction for Member States, businesses, and citizens, and creates a foundation for more investment in net-zero industries and Made-in-Europe technologies, boosting economic stability and competitiveness across the European Union (EU). The 90% target also offers a basis for a robust Nationally Determined Contribution (NDC). The international credits under Article 6 of the Paris Agreement need careful handling to ensure good quality. With the Extraordinary Environment Council scheduled for 18 September, it is up to Member States to agree on a position on the EU’s climate targets for 2035 and 2040 before the UN General Assembly in September.
Executive Director Linda Kalcher commented:
“The 90% target proposal by the Commission is the smart economic and security choice in turbulent geopolitical times. The EU can no longer afford to be dependent on expensive and volatile fossil fuels, costing us over €160 billion per year.
With the proposal on the table, the hard work can start to create majorities. The Danish plan to agree on both 2040 and the EU’s 2035 milestone in time for the September UN deadline will require a major political lift, also at the leaders’ level. The hesitant countries need reassurances that the target is achievable and brings benefits in terms of clean tech leadership, more affordable energy and attracts investments. Failing to agree to both targets on 18 September risks not providing the necessary guidance for the Clean Industrial Deal and risks international embarrassment.”
Director Neil Makaroff said:
“With the Commission’s amendment to the Climate Law being now published, the debate is no longer about whether we need a 2040 target, but about the conditions to reach it. A deal that combines solid industrial policies, investments and the 90% climate goal is not a luxury for Europe at the time of a global net-zero industrial race and geopolitical pressure. Companies and investors need a clear signal from all Member States, including France, that the EU is still serious about its decarbonisation path. 2 million new green industrial jobs are at stake.”
Distinguished Fellow Anne-Sophie Cerisola added:
“The EU’s single market is valued at $17 trillion and covers 450 million citizens. This means whatever it decides on climate has a global impact. Today’s plan to cut its emissions 90% by 2040, with a 2035 target to come, sends a strong message that combining economic prosperity, the safeguarding of people’s well-being, and a just transition away from fossil fuels is doable. It’s good news for the EU, it’s good news for COP30 – what we now need is for all other major economies to step up.”
Senior Fellow Julian Popov commented:
“The amended EU climate law and the clear 90% for 2040 emissions reduction target are essential for the investment predictability on the way to net zero 2050. The amendment will also nudge EU companies to innovate and accelerate new technologies in a critical competition with China.”
Executive Director Linda Kalcher also highlighted:
“Adding international credits to the EU is a risky novelty. It risks directing investments outside Europe when they’re most needed here and it risks delaying domestic efforts at times when we need acceleration. Gold standards for their quality are vital safeguards to prevent fraud. In this context, the EU can choose where to buy these credits carefully and cooperate only with countries with high environmental integrity.”
Director Neil Makaroff added on the enabling conditions for a 90% climate target:
“The 90% climate target is a first step for the EU economy to regain a competitive edge. Backing it with a mix of credible policies and strategic investments is key to reposition the EU in the global race with China. The upcoming EU Budget and the first wave of Clean Industrial Deal reforms present key opportunities for the Commission to rebuild a compelling business case for European industry based on decarbonisation. Swift policies to boost demand for EU-made net-zero technologies — alongside measures that foster innovation, circularity, and a solid investment plan to bridge the post-2026 recovery plan gap — will be essential to delivering on this goal.”
Media contact:
Mirta Baselovic, Communications Officer
mirta.baselovic@strategicperspectives.eu | +32 471 89 08 96
