What changed

PR_COD_1rej

PA_Legam

Symbols for procedures

SHORT JUSTIFICATION

* Consultation procedure

In the Climate Law, Europe has set an ambitious target to reduce greenhouse gas emissions by at least 55% in 2030 and to have a fully decarbonised economy in 2050. Due to the current geopolitical circumstances, the importance of supporting these efforts by setting an ambitious intermediate climate target for 2040 has only increased in importance.

*** Consent procedure

Ensuring that the Union stays on course for climate neutrality in 2050 is not only crucial to limit global warming to the Paris Agreement goal of 1,5°C, and avoiding irreversible tipping points, but vital to ensure competitiveness of European industries, the Union’s strategic autonomy, energy security and energy affordability for business and citizens.

***I Ordinary legislative procedure (first reading)

Therefore, this draft legislative opinion proposes an EU-wide domestic climate target of at least 90% emission reduction by 2040 relative to 1990 levels stated as the most effective in bringing the EU to climate neutrality by 2050 by scientific experts.

***II Ordinary legislative procedure (second reading)

Setting a domestic climate target will ensure investments are made in Europe contributing to strengthen the industrial leadership and competitiveness of European industry, strengthen the Union’s energy independence while lowering energy bills for European businesses and citizens and generating millions of jobs in Europe. Keeping the EU climate target domestic in nature also avoids the risk of watering down EU’s climate efforts when making use of international credits, as experienced earlier when international credits were used under the Kyoto Protocol where many projects failed to deliver the promised emission cuts.

***III Ordinary legislative procedure (third reading)

Furthermore, this draft opinion provides flexibility in reaching our targets by introducing a limited role for domestic permanent removals to compensate for residual emissions from hard to abate sectors without offsetting the necessary emission reductions.

(The type of procedure depends on the legal basis proposed by the draft act.)

In addition, the opinion highlights crucial elements that must be reflected in relevant Union policies going forwards to reach the set targets and ensuring the Union’s competitiveness and security. This includes in particular the energy sector as clean energy is a necessity for other sectors to decarbonise, with electrification being a key driver for decarbonization. In this regard, the significant expansion and modernisation of grids and interconnectors are necessary. It also recognising the key role of energy efficiency measures for decarbonisation efforts and underlines that the best available cost-effective, safe and scalable clean technologies must be reflected.

Amendments to a draft act

The Committee on Industry, Research and Energy submits the following to the Committee on the Environment, Climate and Food Safety, as the committee responsible:

Amendments by Parliament set out in two columns

AMENDMENTS

Deletions are indicated in bold italics in the left-hand column. Replacements are indicated in bold italics in both columns. New text is indicated in bold italics in the right-hand column.

Amendment 1

The first and second lines of the header of each amendment identify the relevant part of the draft act under consideration. If an amendment pertains to an existing act that the draft act is seeking to amend, the amendment heading includes a third line identifying the existing act and a fourth line identifying the provision in that act that Parliament wishes to amend.

Proposal for a regulation

Amendments by Parliament in the form of a consolidated text

Recital 1

New text is highlighted in bold italics. Deletions are indicated using either the ▌symbol or strikeout. Replacements are indicated by highlighting the new text in bold italics and by deleting or striking out the text that has been replaced.

Text proposed by the Commission

By way of exception, purely technical changes made by the drafting departments in preparing the final text are not highlighted.

Amendment

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

(1) The outcome of the first global stocktake3 under the Paris Agreement4 , concluded at the United Nations Climate Change Conference at the end of 2023, found that parties are putting increasingly effective climate policies in place, but that urgent additional action is needed to put the world fully on track for achieving the goals of the Paris Agreement.

on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality

(1) The outcome of the first global stocktake3 under the Paris Agreement4 , concluded at the United Nations Climate Change Conference at the end of 2023, found that parties are putting increasingly effective climate policies in place, but that urgent additional action is needed to put the world fully on track for achieving the goals of the Paris Agreement, and are resolving to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels.

(COM(2025)0524 – C100137/2025 – 2025/0524(COD))

_________________

(Ordinary legislative procedure: first reading)

_________________

– having regard to the Commission proposal to Parliament and the Council (COM(2025)0524),

3 Decision 1/CMA.5.

– having regard to Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C10-0137/2025),

3 Decision 1/CMA.5.

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

4 OJ L 282, 19.10.2016, p. 4.

– having regard to the opinion of the European Economic and Social Committee of [...],

4 OJ L 282, 19.10.2016, p. 4.

– having regard to the opinion of the Committee of the Regions of [...],

Amendment 2

– having regard to Rule 60 of its Rules of Procedure,

Proposal for a regulation

 having regard to the opinion of the Committee on Industry, Research and Energy,

Recital 4

– having regard to the report of the Committee on the Environment, Climate and Food Safety (A10-0000/2025),

Text proposed by the Commission

1. Rejects the Commission proposal;

Amendment

2. Calls on the Commission to withdraw its proposal;

(4) In order to propose the Union 2040 climate target, the Commission considered the best available and most recent scientific evidence, including the latest reports of the Intergovernmental Panel on Climate Change (IPCC) and the Advisory Board; the social, economic and environmental impacts, including the costs of inaction; the need to ensure a just and socially fair transition for all; cost-effectiveness and economic efficiency; competitiveness of the Union’s economy, in particular small and medium-sized enterprises and sectors most exposed to carbon leakage; best available cost-effective, safe and scalable technologies; energy efficiency and the ‘energy efficiency first’ principle, energy affordability and security of supply; fairness and solidarity between and within Member States; the need to ensure environmental effectiveness and progression over time; the need to maintain, manage and enhance natural sinks in the long term and protect and restore biodiversity, including in the marine environment; investment needs and opportunities; international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC); existing information on the projected indicative Union greenhouse gas budget for the 2030-2050 period.

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

(4) In order to propose the Union 2040 climate target, the Commission considered the best available and most recent scientific evidence, including the latest reports of the Intergovernmental Panel on Climate Change (IPCC) and the Advisory Board; the social, economic and environmental impacts, including the costs of inaction, especially acknowledging that, according to the report by the European Environment Agency of 26 June 2025 entitled ‘Renewables, electrification and flexibility for a competitive EU energy system transformation by 2030’, in 2022 the Union imported 98% of its oil and gas and that high energy prices undermine competitiveness and increase the cost of living for citizens ; the need to ensure a just and socially fair transition for all; cost-effectiveness and economic efficiency; principles of free market and competitiveness of the Union’s economy, in particular small and medium-sized enterprises mid-caps, and start-ups notably to avoid disproportionate administrative burden while enabling opportunities of the clean transition and sectors most exposed to carbon leakage; best available cost-effective, safe and scalable technologies; energy efficiency and the ‘energy efficiency first’ principle energy affordability and security of supply; fairness and solidarity between and within Member States; the need to adapt to climate change the need to ensure environmental effectiveness and progression over time; the need to maintain, manage and enhance natural sinks in the long term and protect and restore biodiversity, including in the marine environment; investment needs and opportunities; international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement and the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC); existing information on the projected indicative Union greenhouse gas budget for the 2030-2050 period.

EXPLANATORY STATEMENT

Amendment 3

Context

Proposal for a regulation

On 2 July 2025, the European Commission presented a climate target for 2040 with reference to Article 4(6) of the European Climate Law, Regulation (EU) 2021/1119.

Recital 5

Specifically, the Commission proposes a new, additional binding target of reducing CO2 emissions in EU Member States by 90% compared to 1990 levels, in addition to the existing binding targets of -55% CO2 emissions by 2030 and -100% CO2 emissions by 2050, based on 1990 levels.

Text proposed by the Commission

According to the Commission´s proposal, this very ambitious new target is to be cushioned by various, rather vaguely worded flexibilities to be defined in the future to enable the 2040 target to be achieved.

Amendment

Firstly, these flexibilities are to include, from 2036, a possible limited contribution from international credits under Article 6 of the Paris Agreement, amounting to 3% of the EU's net emissions in 1990. Secondly, the role of permanent removals in the EU under the EU Emissions Trading System (EU ETS) should be taken into account. Finally, flexibility between sectors is also to be increased.

(5) In order to achieve the 2040 climate target it is essential to, inter alia, fully implement the agreed 2030 framework, ensure and provide support to the competitiveness and resilience of the European industry, ensure transition pathways based on best available cost-effective, safe and scalable technologies, set a greater focus on a just transition that leaves no one behind, ensure fair competition with international partners, decarbonise the energy system with all zero and low carbon energy solutions (including renewables, nuclear, energy efficiency, storage, CCS, CCU, carbon removals, geothermal and hydro-energy, and all other current and future net-zero

The inclusion of such clauses is a clear indication that the EU is finding it increasingly difficult to implement its own climate policy. The Commission´s proposal also included additional elements to achieve the 2040 target such as technology neutrality, energy affordability, a just and fair transition, strengthening the EU´s global competitiveness and other similar “evergreens” that the European Commission frequently uses, but without relevant details to make the Commission´s proposals appear more realistic.

energy technologies), and organise a strategic dialogue on the post-2030 framework with all relevant sectors. With the Clean Industrial Deal, the EU is putting in place the conditions for a successful transition, focussing on both decarbonisation and industrial renewal, including support mechanisms for European industry, better access to public and private finance, a global level playing field, and clear enabling conditions for the uptake and scaling of clean technologies, in order to strengthen industrial competitiveness and innovation in the EU.

The rapporteur asked the European Commission for more details on how these elements would work in practice to achieve the proposed 2040 target, but the European Commission was not able to provide any relevant information.

(5) In order to achieve the 2040 climate target it is essential to, inter alia, fully implement the agreed 2030 framework, predictability and regulatory certainty for investors; boost electrification as it is the key driver for decarbonisation, ensure a well-functioning electricity grid requiring significant expansion and modernisation of grids and interconnectors, enhance energy efficiency efforts as energy savings, in line with the Commission communication of 18 May 2022 entitled ‘REPowerEU Plan’, is the cheapest and quickest way to reduce emissions; ensure and provide support to strengthen the competitiveness and resilience of the European industry, ensure transition pathways based on best available cost-effective, safe and rapidly scalable technologies, set a greater focus on a just transition that leaves no one behind, ensure fair competition with international partners, decarbonise the energy system with all zero and low carbon energy solutions (including renewables, nuclear, energy efficiency, storage, CCS, CCU, carbon removals, geothermal and hydro-energy, and all other current and future net-zero energy), and organise a strategic dialogue on the post-2030 framework with all relevant sectors. With the Clean Industrial Deal, the EU is putting in place the conditions for a successful transition, focussing on both decarbonisation and industrial renewal, including support mechanisms for European industry and their business case accompanied by proposed measures under Clean Industrial Deal, circular economy, better access to public and private finance, a global level playing field covering efficient application of the CBAM and measures to tackle risks of carbon leakage in exports, and clear enabling conditions for the uptake and scaling of clean technologies, including through the creation of lead markets in order to strengthen industrial competitiveness and innovation in the EU while acknowledging the current geopolitical situation.

The 2024 European elections have brought a new dynamic. Political groups that have sought a withdrawal or comprehensive rationalisation of the Green Deal have grown stronger, while those calling for an acceleration or continuation of the current course have become less powerful.

Amendment 4

Since the elections, the European Commission has presented numerous corrective proposals, which are often a step in the right direction. These have been presented in the form of so-called omnibus legislative proposals, which include simplifications, later deadlines and the partial withdrawal of commitments in the interests of reducing bureaucracy. However, these minor pragmatic changes are overshadowed by parallel initiatives from the European Commission, such as the so-called Clean Industrial Deal, which represents a continuation of the Green Deal with its strategic mistakes, but pretends to do something for the EU´s competitiveness. A new, additional binding EU emission reduction target for 2040 is an important pillar of this unfair game.

Proposal for a regulation

Global perspective

Recital 7

Competitors in third countries, particularly in North America and East Asia, but also in other parts of the world where there are no or less stringent laws to reduce CO2 emissions, are gaining further ground, while companies in EU Member States are at risk of falling further and further behind. The EU contributes only about 7% to global emissions, while China and India, for example, together produce more than 40%, without comparable binding commitments.

Text proposed by the Commission

The EU has already adopted binding targets for 2030 and 2050, accompanied by robust legislation full of concrete measures, including restrictions and limitations.

Amendment

While the majority of global actors, including the EU´s main competitors, have not yet enshrined their emission reduction commitments in a legally binding framework, the EU is aiming for a third binding target, with two already in place. This puts the EU at risk of becoming the only major economic bloc in the world with a legally binding target for 2040. This is another proof of how the EU is pushing in an absurd and damaging approach, which prioritises ideological ambitions over pragmatic policy-making.

(7) Priority should be given to domestic reductions in greenhouse gas emissions, complementing it by increased removals, including through both natural and technological solutions. In the development of the post-2030 policy package, due attention should be paid to the contribution of gross emission reductions versus natural and technological removals. Nature-based and industrial removals play an increasing role in the Union’s economy in the next decades, in view of the need to balance greenhouse gas emissions and removals at the latest by 2050 and negative emissions thereafter. Incentives will be developed on the occasion of the review of Directive 2003/87/EC of the European Parliament and of the Council7 in 2026, where the Commission envisages to provide for domestic permanent carbon removals in the system for greenhouse gas emission allowance trading within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors.

Relevance of setting binding a target for 2040 in view of COP30 in Belém

(7) Priority should be given to domestic reductions in greenhouse gas emissions, complementing it by increased domestic removals and biogenic sequestration, including through both natural and technological solutions. The land-use, land-use change and forestry sector plays a significant role in a sustainable and circular bioeconomy by providing long-term climate benefits, supporting the EU’s clean transition, and reducing dependence on fossil based raw materials, in the future taking into account its substitution effects. In the development of the post-2030 policy package, due attention should be paid to the contribution of gross emission reductions versus natural and technological removals. With respect to natural sinks, their yearly variability, the effects of climate change, the uncertainties stemming from environmental changes, the impact of wood harvest, the absence of commensurability between Member States, and the considerable difficulties in calculation and monitoring should be considered. Nature-based and industrial removals play an increasing role in the Union’s economy in the next decades, in view of the need to balance greenhouse gas emissions and removals at the latest by 2050 and negative emissions thereafter. Incentives will be developed on the occasion of the review of Directive 2003/87/EC of the European Parliament and of the Council7 in 2026, where the Commission envisages to provide for domestic permanent carbon removals in the system for greenhouse gas emission allowance trading within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors without undermining the integrity of EU ETS.

The rapporteur considers the urgency of adopting a binding target for 2040 ahead of COP 30 to be unjustified. Under the Paris Agreement, the EU is committed to presenting its updated NDC target for 2035 (not a legally binding target). However, this can clearly be done within the existing legal framework. And the EU is definitively not obliged to commit to a legally binding target for 2035 or 2040 in order to be able to present a non-legally binding commitment at COP30 in Belém. After all, will the United States, India or China incorporate new legally binding targets for 2035 or 2040 into their legislation? That is unlikely.

_________________

Impact of the 2040 target

_________________

The Commission´s proposal aims to supplement existing legislation with a legally binding climate target for 2040.

7 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32, ELI: http://data.europa.eu/eli/dir/2003/87/oj).

Looking back, after adopting the legally binding 2030 target, the Commission proposed the “Fit for 55” package that included draconian measures such as extending the ETS to households and SMEs (known as ETS2), setting a path towards a more expensive industrial ETS1, introducing a so-called “ban” on new cars with combustion engines, and many other questionable measures that will make people pay more and undermine the competitiveness of the EU industry worldwide.

7 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32, ELI: http://data.europa.eu/eli/dir/2003/87/oj).

It is to be expected that, if the new 2040 target were to be adopted, the upcoming „Fit for 2040“ legislative package would entail further cost increases and obligations not only for the Member States but also for economic sectors and regions.

Amendment 5

These risks are shared not only by many policymakers, but also by economic sectors with energy-intensive industries. It is feared that such measures will inevitably lead to a further tightening of the EU ETS and an increase in the price of emission allowances, which – combined with the phasing out of free allowances – will have devastating consequences for energy-intensive industries. The competitiveness of the EU economy, in particular that of SMEs and sectors most at risk from of carbon leakage, would suffer.

Proposal for a regulation

Serious concerns in this regard are also shared by different workers´ organisations and trade unions.

Recital 8

It must be made clear at this point that the EU Member States cannot continue on this course without accepting massive economic, social and political upheaval. The risk of rising energy prices, a higher number of bankruptcies, relocations to third countries and job losses, particularly in energy-intensive industries, is a bitter reality. How long do we intend to ignore these risks?

Text proposed by the Commission

Instead, we need a strong economy with strong European companies so that we have our own high-quality products and sound public finances, which form the basis for focusing on current challenges such as increased needs to invest in security and defence due to the uncertain geopolitical situation and the fight against illegal migration.

Amendment

Understanding of Climate change

(8) The Union has in place a regulatory framework to achieve the 2030 climate target. The legislation implementing that target consists, inter alia, of Directive 2003/87/EC, which establishes the EU ETS, Regulation (EU) 2018/842 of the European Parliament and of the Council8 , which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council9 , which sets net carbon removal targets for the land use sector. The Commission should assess how the relevant Union legislation would need to be amended in order to achieve the 2040 climate target. When designing the future architecture, the Commission should prepare detailed impact assessments, including the impacts on competitiveness and small and medium enterprises, and consider taking necessary measures, including legislative proposals as appropriate. A number of elements to facilitate the achievement of the 2040 target should be appropriately reflected, including a potential limited contribution towards the 2040 target of high-quality international credits under Article 6 of the Paris Agreement, in the second part of the 2030-2040 decade, in line with accounting rules of the Paris Agreement; the role of domestic permanent removals (Biogenic emissions Capture with Carbon Storage (BioCCS) and Direct Air Capture with Carbon Storage (DACCS)) in the EU ETS; enhanced flexibility across sectors. In order to assess the social, economic and environmental impacts, the future architecture should be based on robust impact assessments. The future architecture should also foster convergence while taking into account fairness and Member States’ specificities, including those of islands and outermost regions.

A word on science: Science is not unanimous – and climate models are uncertain. The recommendations of scientific bodies are neither infallible nor unanimous. The proposed targets are based on model scenarios with a range of variables and estimates. The actual development of the climate and technologies cannot be predicted 15 to 25 years in advance with sufficient certainty to base the economic strategy of an entire continent on it.

(8) The Union has in place a regulatory framework to achieve the 2030 climate target. The legislation implementing that target consists, inter alia, of Directive 2003/87/EC, which establishes the EU ETS, Regulation (EU) 2018/842 of the European Parliament and of the Council8 , which introduced national targets for reduction of greenhouse gas emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of the Council9 , which sets net carbon removal targets for the land use sector, the Directive (EU) 2018/2001, on the promotion of the use of energy from renewable sources, and the Directive (EU) 2023/1791, on energy efficiency. The Commission should assess how the relevant Union legislation would need to be amended in order to achieve the 2040 climate target. When designing the future architecture, the Commission should prepare detailed impact assessments, including the impacts on competitiveness and small and medium enterprises, and consider taking necessary measures, including legislative proposals as appropriate. A number of elements to facilitate the achievement of the 2040 target should be appropriately reflected, including a potential limited contribution towards the 2040 target of permanent high-quality international credits under Article 6(4) of the Paris Agreement, in the second part of the 2030-2040 decade, in line with accounting rules of the Paris Agreement; the role of domestic permanent removals (Biogenic emissions Capture with Carbon Storage (BioCCS) and Direct Air Capture with Carbon Storage (DACCS)) while maintaining the integrity of the EU ETS; enhanced flexibility across sectors provided that adequate cost-effective objectives are met. In order to assess the social, economic particularly mitigating the impact on households’ purchasing power and on companies’ competitiveness, and environmental impacts, the future architecture should be based on robust impact assessments. The future architecture should also foster convergence while taking into account fairness and Member States’ national circumstances and specificities, including those of islands and outermost regions.

It is also very likely that other factors contribute to climate change. If we focus solely on human-made emissions in the EU Member States, we will reduce our ability to adapt to the elements of climate change caused by nature. An open scientific approach is needed.

_________________

What we suggest

_________________

The focus in the EU Member States must be clearly on adapting to climate change, with mitigation as a secondary priority.

8 Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26, ELI: http://data.europa.eu/eli/reg/2018/842/oj).

Slow but steady progress is more sustainable than a forced rapid transition, which carries the risk of collapse. In terms of legally binding commitments, EU Member States have done much more than other countries. However, other countries are not following suit in a similar way. Unilateral commitments harm European citizens and companies.

8 Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013 (OJ L 156, 19.6.2018, p. 26, ELI: http://data.europa.eu/eli/reg/2018/842/oj).

A greater change can be achieved through further innovation, not regulation. A realistic EU climate policy must be compatible with global competitiveness and must not represent another round of drastic tightening.

9 Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/841/oj).

Peace and security are unlikely to be climate neutral in the next decades. The EU and its Member States also have other priorities. Putting all eggs into one basket is not a solution for our continent.

9 Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/841/oj).

The introduction of a new binding emission target for 2040 is therefore completely unnecessary and will not be replicated by a large majority of global players. We therefore recommend rejecting the European Commission´s proposal.

Amendment 6

We also recommend an urgent recalibration of existing EU climate policy, taking into account the EU´s competitiveness, cost effectiveness and the different needs of individual Member States, regions and economic sectors.

Proposal for a regulation

It is crucial, that no new binding EU climate targets are proposed before the assessment of the achievement of the 2030 climate targets has been completed.

Article 1 – paragraph 1 – point 2

Conclusion

Regulation (EU) 2021/1119 –

In summary, Europe is currently facing internal and external security challenges, economic challenges and a generally tense and uncertain geopolitical situation. Therefore, under these circumstances, the proposal to set a new, additional binding climate target for 2040 appears to be more of an ideological experiment without solid reasons and definitely not a realistic plan. The Commission´s proposal seems even more inappropriate given that other major economies around the world have not implemented comparable targets for 2040. The EU wants to be a leader once again but we cannot see ourselves as a leader, if we are going alone in the wrong direction.

Article 4 – paragraph 4 – subparagraph 3 – point a

As rapporteur, I therefore call for this legislative proposal on the new, additional legally binding climate target for 2040 to be rejected in order to free up capacity for a clear change of course towards market-based, socially just and environmentally sound policies.

Text proposed by the Commission

Amendment

(a) Starting from 2036, a possible limited contribution towards the 2040 target of high-quality international credits under Article 6 of the Paris Agreement of 3% of 1990 EU net emissions supporting the EU and third countries in achieving net greenhouse gas reduction trajectories compatible with the Paris Agreement objective to hold the increase in the global average temperature to well below 2 °C and pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels - the origin, quality criteria and other conditions concerning the acquisition and use of any such credits shall be regulated in Union law;

(a) Starting from 2036, a possible limited contribution towards the 2040 target of permanent high-quality international credits under Article 6(4) of the Paris Agreement equivalent to the amount of up to 3% of 1990 EU net emissions cumulatively over the 2036-2040 period, supporting the EU and third countries in achieving net greenhouse gas reduction trajectories compatible with the Paris Agreement objective to hold the increase in the global average temperature to well below 2 °C and pursue efforts to limit the temperature increase to 1,5 °C above pre-industrial levels - the origin, quality criteria and other conditions concerning the acquisition and use of any such credits shall be regulated in Union law, without undermining the integrity of EU ETS; a robust Monitoring, Reporting and Verification (MRV) system shall be established to ensure such credits are credible and of high-quality;

Amendment 7

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point b

Text proposed by the Commission

Amendment

(b) the role of domestic permanent removals under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors;

(b) the role of domestic permanent removals based on CCS technologies under the greenhouse gas emission allowance trading system within the Union (‘EU ETS’) to compensate for residual emissions from hard to abate sectors while ensuring such removals do not offset necessary emission reductions;

Amendment 8

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point c

Text proposed by the Commission

Amendment

(c) enhanced flexibility across sectors, to support the achievement of targets in a cost-effective way;

(c) enhanced flexibility across sectors, to support the achievement of targets in a cost-effective way provided that adequate cost-effective objectives are met;

Amendment 9

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point c a (new)

Text proposed by the Commission

Amendment

(c a) the necessity to modernise and develop infrastructure for electricity, hydrogen, as well as Carbon Transport, Storage and Utilization, of cross-border and domestic nature;

Amendment 10

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point c b (new)

Text proposed by the Commission

Amendment

(c b) the necessity of utilizing and scaling-up hydrogen in the transition to climate neutrality as well as market framework for hydrogen transportation, storage and usage;

Amendment 11

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point c c (new)

Text proposed by the Commission

Amendment

(c c) the requirement to make the transition to climate neutrality predictable and feasible for industry, notably through avoiding at all cost a strengthening of the Linear Reduction Factor of sectors covered under Directive 2003/87/EC Annex I (“EU ETS”);

Amendment 12

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point c d (new)

Text proposed by the Commission

Amendment

(c d) the necessity of an effective and workable CBAM in the context of phasing out the free allowances in the EU emissions trading system;

Amendment 13

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point d

Text proposed by the Commission

Amendment

(d) Member States post-2030 targets and efforts should reflect cost-efficiency and solidarity, in light of national circumstances;

(d) Member States post-2030 targets and efforts should reflect cost-efficiency, affordability, and solidarity, in light of national circumstances;

Amendment 14

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point g

Text proposed by the Commission

Amendment

(g) the costs of inaction and the benefits of action over mid-term to long-term;

(g) the costs of inaction and the benefits of action over mid-term to long-term, including on sectoral and Member State level;

Amendment 15

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point i

Text proposed by the Commission

Amendment

(i) simplification, technology neutrality, cost-effectiveness, economic efficiency, and economic security;

(i) simplification in order to decrease administrative burdens, availability of mature and affordable technologies, technology neutrality, cost-effectiveness, lowering energy system costs, economic efficiency, and economic security;

Amendment 16

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point i a (new)

Text proposed by the Commission

Amendment

(i a) phase out of fossil fuels and enhancing security of supply;

Amendment 17

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point i b (new)

Text proposed by the Commission

Amendment

(i b) the need to provide regulatory stability, predictability and confidence to economic operators such as industry, investors and citizens;

Amendment 18

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point j

Text proposed by the Commission

Amendment

(j) climate action as a driver for investment and innovation;

(j) climate action as a driver for investment, innovation and increased competitiveness;

Amendment 19

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point j a (new)

Text proposed by the Commission

Amendment

(j a) circular economy and demand side measures as a driver for innovation, and reduction of greenhouse gas emissions;

Amendment 20

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point k

Text proposed by the Commission

Amendment

(k) the need to strengthen the global competitiveness of the Union’s economy, in particular small and medium-sized enterprises and industrial sectors most exposed to carbon leakage so as to ensure fair competition;

(k) the need to strengthen the global competitiveness and open strategic autonomy of the Union’s economy, in particular small and medium-sized enterprises, mid-caps, start-ups and industrial sectors most exposed to the risk of carbon leakage and to ensure fair competition;

Amendment 21

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point l

Text proposed by the Commission

Amendment

(l) best available cost-effective, safe and scalable technologies;

(l) best available cost-effective, safe and rapidly scalable clean technologies in order to achieve rapid, sustained and irreversible reduction of greenhouse gas emissions;

Amendment 22

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point m

Text proposed by the Commission

Amendment

(m) energy affordability, security of supply, energy efficiency and the ‘energy efficiency first’ principle;

(m) energy affordability and increased energy savings, security of supply, boosting renewables, energy efficiency and the ‘energy efficiency first’ principle;

Amendment 23

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point m a (new)

Text proposed by the Commission

Amendment

(m a) energy efficiency as a cross-cutting enabler for industrial decarbonisation and European competitiveness;

Amendment 24

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point m b (new)

Text proposed by the Commission

Amendment

(m b) advancing on electrification of industrial sectors, with completed interconnections and modernisation of grids;

Amendment 25

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point p

Text proposed by the Commission

Amendment

(p) the need to maintain, manage and enhance natural sinks in the long term and protect and restore biodiversity, as well as take into account uncertainties notably those linked to the impacts of climate change in the land use sector;

(p) the need to maintain, manage and enhance as appropriate natural sinks in the long term and protect and restore biodiversity and promote sustainable bioeconomy, as well as take into account uncertainties notably those linked to the impacts of climate change in the land use sector;

Amendment 26

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point q

Text proposed by the Commission

Amendment

(q) investment needs and opportunities, including access to public and private finance;

(q) investment needs and opportunities, including access to public and private finance, scaling up access to capital for the manufacturing of clean technology and promoting public and private partnerships;

Amendment 27

Proposal for a regulation

Article 1 – paragraph 1 – point 2

Regulation (EU) 2021/1119

Article 4 – paragraph 4 – subparagraph 3 – point q a (new)

Text proposed by the Commission

Amendment

(q a) the increase of job creation in clean tech sectors across the Union including the need for upgrading skills;

Amendment 28

Proposal for a regulation

Article 1 – paragraph 1 – point 2 a (new)

Regulation (EU) 2021/1119

Article 11

Text proposed by the Commission

Amendment

(2 a) Article 11 is replaced by the following:

'Article 11

Review

Within six months of each global stocktake referred to in Article 14 of the Paris Agreement, the Commission shall submit a report to the European Parliament and to the Council, together with the conclusions of the assessments referred to in Articles 6 and 7 of this Regulation, on the operation of this Regulation, taking into account:

(a) the best available and most recent scientific evidence, including the latest reports of the IPCC and the Advisory Board;

(b) the necessity to assess the impact on evolution of the maturity, readiness and the level of deployment of new technologies, such as DACCS and BECCS, the volume of permanent carbon removals available for use, impacts on competitiveness of European industry, particularly SMEs, mid-caps, start-ups, impact on energy prices, energy poverty, employment changes; where assessments indicate any negative impacts, the Commission may introduce mitigating measures;

(c) international developments and efforts undertaken to achieve the long-term objectives of the Paris Agreement.

The Commission’s report may be accompanied, where appropriate, by legislative proposals to amend this Regulation.'

ANNEX: DECLARATION OF INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that he included in his reportopinion input on matters pertaining to the subject of the file that he received, in the preparation of the draft report,opinion, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register

Svaz chemického průmyslu České republiky (Association of Chemical Industry of the Czech Republic SCHP ČR)

Concito

GasNet, s.r.o.

Green Power Denmark

Union of Entrepreneurs and Employers ZPP

Rådet for Grøn Omstilling

The European Chemical Industry Council (CEFIC)

Bundesverband der Deutschen Industrie e.V (BDI)

Eurochambers (Open letter to Executive Vice President Teresa Ribera)

Danish Industry

Fuels Europe

Confederation of Finnish Industries

Centre for Transport and Energy

For Irish Business

French Federation for waste management and environmental services (FNADE)

Mouvement des Entreprises de France

The Spanish Association of Wall and Floor Tile Manufacturers (ASCER)

Confederantion of Norwegian Enterprise (NHO

The European Ceramic Industry Association

Svenskt Näringsliv: Joint Industry Declaration

Federchimica (The Italian Federation of the chemical industry)

Permanent Representation of Denmark to the European Union

The Federation of Austrian Industries (IV)

PROCEDURE – COMMITTEE ASKED FOR OPINION

Ocelářské unie

Title

Odborový svaz KOVO

Amending Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality

U. S. Steel Košice, s.r.o.

References

ČEZ, a.s.

COM(2025)0524 – C10-0137/2025 – 2025/0524(COD)

Svaz průmyslu a dopravy ČR

Committee(s) responsible

2. Representatives of public authorities of third countries, including their diplomatic missions and embassies

Date announced in plenary

UK Mission to the European Union

ENVI

The list above is drawn up under the exclusive responsibility of the rapporteur.

7.7.2025

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the natural persons concerned the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

Opinion by

Date announced in plenary

ITRE

7.7.2025

Rapporteur for the opinion

Date appointed

Niels Fuglsang

18.7.2025

Date adopted

5.11.2025

Result of final vote

+:

–:

0:

48

34

6

Members present for the final vote

Oihane Agirregoitia Martínez, Wouter Beke, Hildegard Bentele, Tom Berendsen, Michael Bloss, Barbara Bonte, Paolo Borchia, Borys Budka, Carlo Ciccioli, Raúl de la Hoz Quintano, Pilar del Castillo Vera, Matthias Ecke, Jan Farský, Sigrid Friis, Niels Fuglsang, Lina Gálvez, Alexandra Geese, Bruno Gonçalves, Nicolás González Casares, Giorgio Gori, Elisabetta Gualmini, András Gyürk, Niels Flemming Hansen, Eero Heinäluoma, Ivars Ijabs, Diana Iovanovici Şoşoacă, Adam Jarubas, Ondřej Knotek, Michał Kobosko, Ondřej Krutílek, Eszter Lakos, Morten Løkkegaard, Yannis Maniatis, Sara Matthieu, Eva Maydell, Marina Mesure, Jana Nagyová, Dan Nica, Angelika Niebler, Ville Niinistö, Aleksandar Nikolic, Mirosława Nykiel, Daniel Obajtek, Thomas Pellerin-Carlin, Pascale Piera, Virgil-Daniel Popescu, Jüri Ratas, Julie Rechagneux, Elena Sancho Murillo, Jussi Saramo, Paulius Saudargas, Benedetta Scuderi, Anthony Smith, Diego Solier, Anna Stürgkh, Beata Szydło, Dario Tamburrano, Bruno Tobback, Matej Tonin, Isabella Tovaglieri, Kris Van Dijck, Francesco Ventola, Yvan Verougstraete, Mariateresa Vivaldini, Angelika Winzig, Anna Zalewska, Nicola Zingaretti

Substitutes present for the final vote

Per Clausen, Paulo Cunha, Margarita de la Pisa Carrión, Petras Gražulis, Martin Hojsík, Jutta Paulus, Gaetano Pedulla’, Massimiliano Salini, Francesco Torselli, Dimitris Tsiodras, Brigitte van den Berg, Iuliu Winkler

Members under Rule 216(7) present for the final vote

Biljana Borzan, Daniel Caspary, Laurent Castillo, Johan Danielsson, Evin Incir, Alexander Jungbluth, Lena Schilling, Volker Schnurrbusch, Ana Vasconcelos

FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION

Key to symbols: