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ORDINARY LEGISLATIVE procedure
SHORT JUSTIFICATION
Follow up to the European Parliament legislative resolution 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
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.
1. Rapporteur: Ondřej KNOTEK (PfE / CZ)
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.
2. References: 2025/0524(COD) / A10-0223/2025 / P10_TA(2026)0031
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.
3. Date of adoption of the resolution: 10 February 2026
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.
4. Legal basis: Article 192(1) of the Treaty on the Functioning of the European Union
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.
5. Competent Parliamentary Committee: Committee on the Environment, Climate and Food Safety (ENVI)
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.
6. Commission's position: accepts all amendments.
The Committee on Industry, Research and Energy submits the following to the Committee on the Environment, Climate and Food Safety, as the committee responsible:
The Commission presented the following statement:
AMENDMENTS
On recital 8a: In the impact assessments accompanying the legal proposals on the post-2030 framework the Commission will analyse different options for the role of international credits in relation to the different pieces of legislation. In this context the Commission recalls the explanatory memorandum to the proposal and the need to ensure the stability of the EU ETS.
Amendment 1
Proposal for a regulation
Recital 4
Text proposed by the Commission
Amendment
(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.
(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; 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.
Or. en
Amendment 2
Proposal for a regulation
Recital 5
Text proposed by the Commission
Amendment
(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 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.
(5) In order to achieve the 2040 climate target it is essential to, inter alia, fully implement the agreed 2030 framework, 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 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 cost-effective and best available clean 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.
Or. en
Amendment 3
Proposal for a regulation
Recital 6
Text proposed by the Commission
Amendment
(6) In light of the 2050 climate-neutrality objective, by 2040 greenhouse gas emissions should be reduced and removals enhanced, to ensure that the net greenhouse gas emissions, that is emissions after deduction of removals, are reduced economy-wide by 90 % by 2040 compared to 1990 levels.
(6) In light of the 2050 climate-neutrality objective, by 2040 greenhouse gas emissions should be reduced and removals enhanced, to ensure that the net greenhouse gas emissions, that is emissions after deduction of removals, are reduced domestically economy-wide by at least 90 % by 2040 compared to 1990 levels.
Or. en
Amendment 4
Proposal for a regulation
Recital 7
Text proposed by the Commission
Amendment
(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.
(7) Priority should be given to domestic reductions in greenhouse gas emissions, complementing it by increased domestic 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 a limited role of 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 while ensuring such removals do not offset necessary emission reductions.
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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).
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).
Or. en
Amendment 5
Proposal for a regulation
Recital 8
Text proposed by the Commission
Amendment
(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.
(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. To facilitate the achievement of the 2040 target the limited role of domestic permanent removals (Biogenic emissions Capture with Carbon Storage (BioCCS) and Direct Air Capture with Carbon Storage (DACCS)) in the EU ETS and safeguards to ensure that such removals do not offset necessary emission reductions should be appropriately reflected. 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.
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__________________
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).
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).
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).
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).
Or. en
Amendment 6
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Regulation (EU) 2021/1119
Article 4 – paragraph 3
Text proposed by the Commission
Amendment
3. In order to reach the climate-neutrality objective set out in Article 2(1), the binding Union 2040 climate target shall be a reduction of net greenhouse gas emissions (emissions after deduction of removals) by 90 % compared to 1990 levels by 2040.
3. In order to reach the climate-neutrality objective set out in Article 2(1), the binding domestic Union 2040 climate target shall be a reduction of net greenhouse gas emissions (emissions after deduction of removals) by at least 90 % compared to 1990 levels by 2040.
Or. en
Amendment 7
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Regulation (EU) 2021/1119
Article 4 – paragraph 4 – subparagraph 3 – introductory part
Text proposed by the Commission
Amendment
Within the framework of the review referred to in the first subparagraph, in order to facilitate the achievement of the target set out in paragraph 3 of this Article, the Commission shall ensure that the following elements are appropriately reflected in the legislative proposals:
Within the framework of the review referred to in the first subparagraph, in order to facilitate the achievement of the target set out in paragraph 3 of this Article, the Commission shall ensure that the following elements are appropriately reflected in the legislative proposals while the pillars of European energy and climate policy shall be retained:
Or. en
Amendment 8
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Regulation (EU) 2021/1119
Article 4 – paragraph 4 – subparagraph 3 – point a
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;
deleted
Or. en
Amendment 9
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 limited 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 and safeguards to ensure that such removals do not offset necessary emission reductions;
Or. en
Amendment 10
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;
deleted
Or. en
Amendment 11
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;
Or. en
Amendment 12
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, cost-effectiveness, lowering energy system costs,economic efficiency, and economic security;
Or. en
Amendment 13
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
(ia) phase out of fossil fuels and improving resilience of security of its energy supply;
Or. en
Amendment 14
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
(ja) circularity as a driver for innovation;
Or. en
Amendment 15
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 strategic autonomy 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;
Or. en
Amendment 16
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 scalable clean technologies;
Or. en
Amendment 17
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, security of supply, boosting renewables, energy efficiency and the ‘energy efficiency first’ principle;
Or. en
Amendment 18
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
(ma) energy efficiency as a key strategic sector for industrial decarbonisation and European competitiveness;
Or. en
Amendment 19
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
(mb) advancing on electrification of industrial sectors, with completed interconnections and modernisation of grids;
Or. en
Amendment 20
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 ;
Or. en
Amendment 21
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
(qa) the increased support for skills to ensure the deployment of clean technology reflecting the increase of job creation in clean energy manufacturing and servicing across the Union;
Or. en
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 draft opinion input on matters pertaining to the subject of the file that he received, in the preparation of the draft opinion, 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
Concito
Green Power Denmark
Rådet for Grøn Omstilling
Bundesverband der Deutschen Industrie e.V (BDI)
Danish Industry
Confederation of Finnish Industries
For Irish Business
Mouvement des Entreprises de France
Confederantion of Norwegian Enterprise (NHO
Svenskt Näringsliv: Joint Industry Declaration
Permanent Representation of Denmark to the European Union