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

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

A-10-2025-0223

Committee on the Environment, Climate and Food Safety · Rapporteur: Ondřej Knotek

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Parliament's amended version of the proposed regulation amending the European Climate Law sets the EU 2040 climate target and the framework for achieving it. It requires the Commission to reflect specific elements in legislative proposals, including international credits, carbon removals, flexibility, and social and competitiveness considerations. It adds biennial assessments and reporting, and postpones emissions trading for buildings and road transport until 2028.

Committee position. The Committee on the Environment, Climate and Food Safety proposes amendments to the Commission proposal, setting the 2040 target framework and postponing ETS for buildings and road transport.

Key points

  1. The Commission shall continue to strengthen the enabling framework and accelerate adoption and implementation to support industry and citizens.
  2. From 2036, an adequate contribution of up to 5% of 1990 EU net emissions may come from high-quality international credits under Article 6 of the Paris Agreement.
  3. Domestic permanent removals under the EU ETS should compensate for residual hard-to-abate emissions.
  4. Enhanced flexibility within and across sectors and instruments should support cost-effective target achievement.
  5. The Commission shall consider realistic carbon removal contributions, natural sink maintenance, and biodiversity protection.
  6. Member State post-2030 targets should reflect cost-efficiency, solidarity, and national circumstances including islands and outermost regions.
  7. The transition should be fair, just, pragmatic, and socially balanced, considering impacts on prices, energy poverty, SMEs, farmers, and vulnerable households.
  8. Legislative proposals should include simplification, technology neutrality, competitiveness, energy affordability, and grid strengthening.
  9. The Commission shall biennially assess and report on implementation, possibly with legislative proposals.
  10. Reports shall cover competitiveness, energy prices, socioeconomic impacts, technology deployment, net removals, and progress.
  11. Member States may use international credits for up to 5% of post-2030 targets in non-ETS sectors.
  12. Emissions trading for buildings, road transport, and additional sectors is postponed until 2028.

Who is affected

  • European industry and citizens, including SMEs, farmers, and vulnerable households, will be supported through the transition.
  • Member States, including islands and outermost regions, will have flexibility in setting post-2030 targets.
  • Sectors covered by emissions trading for buildings and road transport will see postponed operation until 2028.

Figures and deadlines

  • up to 5% of 1990 EU net emissions from international credits starting 2036
  • postponed until 2028

Legal basis: Article 192(1) of the Treaty on the Functioning of the European Union