What does proposed EU 2040 target mean for climate action?

The European Commission's proposed net 90% emissions reduction target for 2040 is criticized by Carbon Market Watch for being inadequate and lacking accountability. The analysis highlights risks associated with the potential use of international carbon credits, the absence of separate targets for gross emissions and removals, and the proposed integration of permanent removals into the EU ETS, which may create loopholes for polluters.

• The proposed net 90% emissions reduction target for 2040 is considered insufficient by Carbon Market Watch and EU environmental NGOs, who argue the EU should achieve full climate neutrality by 2040 to meet Paris Agreement goals.
• The proposal uses a single net emissions target, failing to distinguish between gross emissions reductions, land-based sequestration, and permanent removals, and removes a previous safeguard that capped the land sector's contribution to the target.
• The Commission proposes a 'possible limited use' of international carbon credits allowing up to 3% of 1990 EU net emissions to count toward the 2040 target. This could represent 144 million credits, or over 700 million if applied annually, potentially making 2040 net emissions 30% higher than if the target were met domestically.
• There is significant uncertainty and risk regarding the quality and permanence of international credits, with concerns that the EU might fund unsustainable bioenergy with carbon capture and storage (BECCS) projects.
• The proposal suggests using permanent removals within the EU Emissions Trading System (EU ETS) to compensate for hard-to-abate sectors, which the author argues would create loopholes for polluters rather than a genuine business case for removals.
• The document claims the legislative process was flawed, noting a 17-month delay in publishing the text and alleging that the Commission conducted 'behind-the-scenes talks' to lower the ambition of the final legislation.

APA

Dossi, F. (2025). What does proposed EU 2040 target mean for climate action? Carbon Market Watch. https://carbonmarketwatch.org/2025/07/04/what-does-proposed-eu-2040-target-mean-for-climate-action/

Chicago

Dossi, Federica. What does proposed EU 2040 target mean for climate action? Carbon Market Watch, 2025. https://carbonmarketwatch.org/2025/07/04/what-does-proposed-eu-2040-target-mean-for-climate-action/.

Wikipedia

{{cite report |last1=Dossi |first1=Federica |title=What does proposed EU 2040 target mean for climate action? |publisher=Carbon Market Watch |date=4 July 2025 |url=https://carbonmarketwatch.org/2025/07/04/what-does-proposed-eu-2040-target-mean-for-climate-action/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dossi2025what, author = {Dossi, Federica}, title = {{What does proposed EU 2040 target mean for climate action?}}, institution = {Carbon Market Watch}, year = {2025}, month = jul, url = {https://carbonmarketwatch.org/2025/07/04/what-does-proposed-eu-2040-target-mean-for-climate-action/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }