BRUSSELS (July 2, 2025) - Today, the European Commission presented its formal proposal to cut the European Union’s greenhouse gas emissions by 90% by 2040, from 1990 levels.

The revised EU Climate Law aligns with the lower limit of the 90%-95% reduction range recommended by the European Scientific Advisory Board on Climate Change in 2024. The 2040 target will be a critical input to the EU’s forthcoming national climate plan, or Nationally Determined Contribution (NDC).

Following is a statement by Stientje van Veldhoven, Vice President and Regional Director for Europe, World Resources Institute: 

“A 90% emissions cut by 2040, as proposed by the Commission, keeps the EU on track for climate neutrality. It’s realistic, absolutely necessary and aligned with the bloc’s earlier commitment. If achieved, the EU will be well on its way to becoming carbon neutral by 2050.

The EU must back this credible 2040 target with a timely NDC by September with at least a 72.5% economy-wide emission reduction by 2035. This would set a clear, ambitious path for the green transition and show the EU is serious about leading the global energy race, investing in its industrial competitiveness and strengthening its energy security. 

The proposed emission reductions must be delivered through domestic action. Overreliance on carbon credits would undermine the credibility of the EU’s target while diverting investment away from the EU’s clean tech industry. It is critical that monitoring and verification guardrails are put in place to limit the use of carbon credits to less than 3% of the target, ensure transparency and prevent emissions leakage. 

The Commission also proposes leveraging carbon removal, which should be approached cautiously. While carbon removal can play a role in reaching the EU’s target, this must complement — not replace — deep emissions cuts. First and foremost, EU policymakers must take bold steps to phase out fossil fuels, scale up renewables, electrify transport and halt deforestation. Europe’s credible climate leadership will be vital as we approach COP30 in November.”