On 2 July, the EU Commission adopted its proposal to amend the European Climate Law, introducing a legally binding target to reduce net greenhouse gas emissions by 90% by 2040 compared to 1990 levels. The proposal follows repeated delays and aims to provide clarity on the EU’s trajectory between the 2030 and 2050 milestones.

The proposal includes a limited role for international carbon credits from 2036, the integration of permanent domestic removals into the EU Emissions Trading System, and more flexibility for Member States in determining sectoral contributions. The Commission underlined the need to ensure industrial competitiveness by supporting all zero- and low-carbon energy solutions, including renewables, nuclear, and carbon capture technologies.

The file will now move to the Council and European Parliament for negotiations under the ordinary legislative procedure. The outcome will define how the EU balances ambition, flexibility, and competitiveness on its path to climate neutrality by 2050.