On 2 July 2025, the European Commission presented its proposal for a binding interim climate target – by 2040, net greenhouse gas emissions in the EU should be reduced by 90% compared to 1990 levels. With this step, Brussels aims to stay on course for the already agreed objective of climate neutrality by 2050 – a key commitment under the European Climate Law.
“Industry and investors expect us to provide a clear direction. Today, we are reaffirming our commitment to decarbonising the European economy by 2050,” said Commission President Ursula von der Leyen.
The additional 2040 target marks the next step on the EU’s decarbonisation pathway. By 2030, emissions are to be cut by at least 55% compared to 1990 – to be achieved solely through domestic measures within the EU.
Climate certificates from outside the EU
To help meet the targets, the Commission plans to allow the use of international climate protection projects in the emissions balance from 2036 – albeit in a limited way. Up to 3% of the 1990 base-year emissions may be offset using so-called climate certificates from non-EU countries. Until now, EU member states were required to meet their climate goals exclusively through domestic reductions.
What happens next?
The Commission’s proposal will now go to the European Parliament and the Council. Both institutions will develop their respective positions on the target. These will then be negotiated and consolidated into a joint legislative text.
Transport and logistics: Infrastructure remains a bottleneck
The transport and logistics sector, in particular, faces considerable challenges in achieving the targets. The German Association of the Automotive Industry (VDA) described the 90% goal as “currently not realistically achievable.”
“It is currently not evident how CO₂ emissions can be reduced by 90% across Europe by 2040 – even taking into account the 2030 target of 55%,” said VDA President Hildegard Müller.
Müller criticised that “Brussels must do more than simply set ambitious targets.” The rollout of charging and hydrogen refuelling infrastructure must be accelerated and systematically monitored.
She also called for emissions trading to be expanded as a key instrument to include the transport and building sectors. This, she argued, would not only reduce regulatory complexity but also provide greater economic planning certainty.
“Such simplification of the regulatory framework would be a welcome step,” Müller said.
Existing fleets and alternative fuels: Tapping into potential
The eFuel Alliance also criticised the Commission’s plans as “ambitious but impractical.” Managing Director Ralf Diemer stressed that European companies need investment security. He called for “technology openness instead of bans” and for “tax incentives for CO₂-neutral fuels” to ensure fair competition.
The Alliance highlighted the CO₂-saving potential of eFuels – even a 5% blend by 2030 could reduce emissions by 60 million tonnes per year. This would offer a realistic path to decarbonisation, particularly for existing fleets in aviation, shipping, and road transport.
