EU sets 2040 climate target in new legal framework

EU sets 2040 climate target in new legal framework 

In early July 2025, the European Commission released a proposal for a far-reaching emissions reduction plan that sets the course for EU climate policy beyond 2030. Central to this initiative is the legally enshrined objective of reducing greenhouse gas emissions by at least 90% by 2040 compared to 1990 levels. The framework builds on the European Climate Law, which already codifies the Union’s 2050 climate neutrality goal and the interim 2030 target of a 55% reduction.

The proposed plan is framed by guiding principles of cost-efficiency, fairness, simplicity, technological neutrality, and a just transition. These principles are intended not merely as policy aspirations but as legal benchmarks that will shape the implementation of future legislation. The Commission seeks to ensure that the transition remains socially and economically viable while preserving EU industrial competitiveness and preventing carbon leakage.

The Commission has made it clear that effective implementation of the 2040 pathway depends on several preconditions. These include the deployment of enabling technologies, the availability of sufficient funding mechanisms under the EU budget and the Innovation Fund, and regulatory stability that supports long-term investment. Furthermore, the proposal anticipates a strengthened Carbon Border Adjustment Mechanism to ensure a level playing field in global trade and to shield EU industries from unfair competition by third countries with weaker climate rules. Legally, this proposal is expected to serve as the basis for a new package of legislative measures under the post-2030 framework. These will complement and build upon the existing “Fit for 55” package adopted in 2021, and are likely to include amendments to key directives such as the Emissions Trading System, the Effort Sharing Regulation, and the Renewable Energy Directive.

The Commission has also reaffirmed its commitment to embedding the principle of a just transition throughout EU climate governance. This is not only a political imperative but may give rise to legal obligations under the EU Charter of Fundamental Rights, particularly regarding the protection of vulnerable communities and ensuring equal access to the benefits of climate action.

From a legal standpoint, the proposed 2040 roadmap is a significant step in reinforcing the binding nature of the EU’s climate commitments. It introduces a legal framework that anticipates differentiated implementation across Member States, while maintaining coherence through common targets and legal standards. However, the success of this framework will depend on effective secondary legislation, rigorous enforcement mechanisms, and judicial oversight where necessary.

As the proposal moves through the legislative process, its political and legal implications will continue to unfold. It marks a decisive shift toward long-term climate governance in the EU and raises important questions about legal certainty, enforceability, and the future shape of European environmental law.