2040 Climate Target keeps EU on track, but Europe's global climate credibility now rests on swift agreement

The European Commission’s proposal for an EU-wide 90% reduction in greenhouse gas emissions by 2040 is what is needed to keep the EU’s climate credibility and the 2050 Climate Law on track. Swift agreement by the European Parliament and the Member States is now essential to ensure the EU’s Nationally Determined Contribution (NDC) catalyses further ambition on the road to COP30.

The Nature Conservancy (TNC) welcomes the European Commission’s announcement of a 2040 climate target aiming to cut net greenhouse gas emissions by 90% compared to 1990 levels. If adopted by the European Parliament and the Member States, this target would strongly reaffirm the EU’s leadership in global climate action and lay a strong foundation for the EU’s 2035 NDCs. 

Welcoming the announcement, Noor Yafai, Europe Director for Global Policy and Institutional Partnerships at The Nature Conservancy, said: “As Europe experiences the effects of extreme heatwaves this week, the urgency of climate action is being felt by an increasing number of citizens, communities, businesses, landowners and farmers across our continent.”  

“A 90% emissions reduction by 2040 is not only necessary – it will be a catalyst for accelerating investment in climate solutions and strengthening Europe’s long-term, strategic competitiveness and resilience. It is also a much-needed step to maintain the EU’s international credibility on climate change, keeping us on track for our 2050 legally binding emissions reductions. We hope this inspires other major economies to present their own ambitious targets ahead of COP30.”

Looking ahead, TNC urges EU institutions to translate today’s ambition into a robust 2035 NDC by the September deadline, reinforcing the EU’s leadership in the run-up to COP30.

Following reports that the Commission was considering introducing flexibilities in their post-2030 climate policy framework, the proposal introduces possibility of using international carbon credits under Article 6 of the Paris Agreement to meet up to 3% of the 90% target as of 2036. TNC acknowledges the potential of this mechanism to scale global mitigation efforts, while emphasizing the need for robust safeguards. 

Rebecca Humphries, TNC’s Head of Climate Policy for Europe, adds: “Based on today’s announcements, questions still remain on how international carbon credits will be integrated into the 2040 target. Carbon markets, when done right, can lead to faster and more effective climate progress.” 

“To achieve that, the EU must ensure that any use of international credits is additional, transparent, and meets the highest environmental and social integrity standards. At TNC, we believe that international credits should complement, not replace, ambitious domestic action and must lead to real, verifiable emissions reductions.” 

International credits offer an opportunity to increase reductions while channelling much needed climate capital to communities that lead carbon projects in developing countries. Further impact assessments on the feasibility, impact and supply of such credits in the EU’s post-2030 climate policy framework are needed.

The ball is now in the European Parliament and the Member States’ court to adopt the 2040 target proposed by the European Commission, as swiftly as possible.

Meanwhile, concern remain over the unresolved status of the Green Claims Directive, which was expected to be finalized by the end of June after more than two years of negotiations.

“The uncertainty surrounding the Green Claims Directive sends the wrong signal to citizens and businesses. Clear, consistent and credible regulation of environmental claims is essential to build trust and drive private sector investment in climate solutions,” adds Humphries. 

TNC calls for renewed momentum to finalise the Directive and align with similar international initiatives to set credible, high-integrity and attainable standards in voluntary claims.