A key European Parliament committee is preparing to endorse a sweeping new emissions-reduction target, marking a critical milestone in the European Union’s long-term climate agenda. According to Bloomberg, the environment committee is expected on Monday to back a 90% reduction in greenhouse gas emissions by 2040 from 1990 levels—a step designed to steer the bloc toward net-zero emissions by midcentury. The move comes after EU member states gave preliminary approval last week, following intense negotiations that softened parts of the draft law to ease the burden on heavy industry.
The EU’s renewed climate ambition stands in contrast to a growing global trend of backpedaling on green commitments, with countries such as the United States prioritizing economic growth and competitiveness over environmental goals. Within Europe, the political consensus that underpinned the bloc’s energy transition just five years ago has begun to fracture, as governments grapple with the costs of decarbonization and the risk of backlash from voters already strained by high living costs.
When lawmakers vote in Brussels, the committee is likely to recommend that countries be allowed to use international carbon credits to offset a larger portion of their emissions—a controversial step backed by four political groups that collectively hold a majority in the EU assembly. The coalition, led by the European People’s Party (EPP) along with the Socialists & Democrats, Renew Europe, and the Greens, is also expected to push for a one-year delay in launching a new carbon market for buildings and transport, known as ETS2. It is further seeking a slower phaseout of free emissions permits for industrial companies, a concession designed to protect competitiveness and prevent energy price spikes.
Those changes reflect a careful balancing act between climate ambition and economic pragmatism. Member states agreed to the adjustments last week in an effort to preempt social unrest, with some politicians warning that higher energy bills could reignite protests similar to France’s “yellow vest” movement. The committee’s decision will pave the way for a full parliamentary vote later this month, where the entire chamber will determine its negotiating stance ahead of talks with the European Commission and the EU Council.
Some lawmakers, particularly within the EPP, are already pushing for deeper delays. EPP Vice Chairman Andrzej Halicki has called for the new emissions trading system for heating and transport fuels to be postponed until at least 2030, arguing that Europe’s households and small businesses need more time to adapt. The final shape of the 2040 climate law will ultimately depend on a complex round of negotiations between the EU’s legislative bodies, balancing environmental integrity with political feasibility.
The European Union already has two binding targets in place—a 55% emissions cut by 2030 and full climate neutrality by 2050. However, a central point of contention in the upcoming talks will be whether to slow the rate of reductions under the bloc’s existing carbon market, which governs utilities and manufacturers. Parliament is expected to urge the European Commission to reduce the Linear Reduction Factor, the mechanism that determines how fast the emissions cap tightens each year. For now, the EU’s climate pathway remains ambitious, but the latest proposals suggest the road to net zero may be paved with political compromises.
