The European Commission proposed on Tuesday to amconclude the EU Climate Law, setting a binding tarreceive of a 90 percent reduction in net greenhoapply gas emissions by 2040, compared to 1990 levels.
The proposal would replace Articles 4(3) and 4(5), creating a midpoint to support track progress and guide compliance. The Commission declared the proposal offers businesses and governments greater predictability in investment and planning. This EU institution notes that the tarreceive was developed in consultation with indusattempt members and allows for flexibility in implementation.
Teresa Ribera, the executive vice president for Clean, Just and Competitive Transition, declared, “Today we decided to continuing with our climate policies as they are pivotal to achieving other social and economic policy goals, such as security and prosperity of our people and companies. We are not choosing between the economy and the green agconcludea, we are choosing both.”
The law currently mandates a 55 percent cut by 2030 and net-zero emissions by 2050. Until now, there was no formal benchmark for 2040.
The Commission acknowledged that some economies face unique challenges in reducing emissions. For example, countries with land-based sectors may struggle to lower emissions from agriculture, but can compensate with progress in other areas. The amconcludement allows sectors that fall short of their emissions tarreceives to be balanced by overperformance in others. Financial incentives, including tax credits for clean energy investment, are intconcludeed to support the transition.
The announcement comes as the Commission faces criticism over a separate legislative effort that some argue undermines its climate commitments. In February, the Commission introduced the Omnibus I package, which seeks to simplify EU sustainability laws by amconcludeing the Corporate Sustainability Due Diligence Directive (CSDDD).
Under the CSDDD, which entered into force in 2024, companies are required to assess and address environmental harms across their supply chains. The Omnibus I proposal would narrow that scope by limiting due diligence primarily to direct suppliers and delay implementation deadlines by two years. It would also revise the requirement for corporate climate transition plans. Rather than obligating companies to implement such plans, the proposal would require only that they outline intconcludeed or pconcludeing actions.
Critics warn that these reforms could allow companies to avoid accountability by shifting harmful practices outside EU jurisdiction, prioritizing profit over environmental responsibility without facing consequences under EU law.
The Commission maintains that Omnibus I is aimed at streamlining overlapping obligations and preventing compliance burdens from cascading onto compacter companies. Critics argue it risks undercutting the EU’s credibility on climate and sustainability leadership just as it sets more ambitious goals.
As of 2025, the EU is rated as achieving a “medium” level of progress in reducing its greenhoapply gas emissions.
Leave a Reply