23. 10. 2025
AUTHOR: Strategic Perspectives
Following months of negotiations, leaders at the European Council adopted the conclusions on how to support the achievement of the EU’s intermediate climate target for 2040. Today’s conclusions open the space for ministers to reach the final agreement on the target and its enabling conditions at the Extraordinary Environment Council on 4 November. This deal is key to supporting EU industrial competitiveness, enhancing predictability for investors, and catching up with China in the global net-zero race.
This should also allow ministers to adopt the EU’s pledge (Nationally Determined Contribution) right before world leaders convene on 6 November at the UN climate summit COP30 in Brazil.
On the dynamics of negotiations
Executive Director Linda Kalcher commented:
“Leaders crossed a major hurdle by adopting conclusions that confirm the 2040 climate target contributes to competitiveness and prosperity. President Costa managed to rein in populist attempts to weaken existing climate laws or to derail the conversation entirely. Instead, leaders set priorities on electrification, lowering energy prices and supporting businesses that can help reverse the ‘slow agony’ Draghi warns about.”
Director Neil Makaroff analysed:
“The compromise in the European Council sends the long overdue signal to companies and global partners that Europe stays in the net-zero race. EU leaders have struck the right balance between unlocking the long-term direction and giving a solid mandate to the Commission to propose industry reforms that respond to the Draghi report.”
On the next steps for the 2040 target
Executive Director Linda Kalcher added:
“This has been a significant achievement but the final sprint to agree the 2040 target has only just started. Countries still disagree on the contribution of natural carbon sinks and international credits to the 90% reduction pathway. It’s now on the Danish presidency to craft a deal that gets a majority of countries over the finish line on 4 November.”
Director Neil Makaroff concluded:
“With this agreement, Europe can now shift its focus from setting targets to implementing concrete measures that deliver decarbonisation through Made-in-Europe technologies and homegrown energy. EU leaders have made it clear: Europe needs to equip itself with all the necessary industrial tools to effectively compete with China and stand firm against U.S. pressure. A mission for the future industry package planned for December.”
Media contact:
Mirta Baselovic, Communications Officer
Photo credit: European Union, 2025
