The European Parliament has backed an ambitious new climate target, calling for a 90% reduction in greenhouse gas emissions by 2040 compared with 1990 levels. The move is intended to

keep the EU on track to reach climate neutrality by 2050, as mandated under the bloc’s Climate Law.

In a vote on Thursday, MEPs endorsed their position on the European Commission’s proposal to revise the law, approving the new intermediate target by 379 votes to 248, with 10 abstentions. Parliament is now set to begin negotiations with member states on the final legislation.

Flexibility for member states

Lawmakers stressed that Europe’s green transition must advance alongside efforts to strengthen the continent’s economic competitiveness. They backed new flexibilities that would give member states more options in meeting the 2040 goal.

From 2036, up to five percentage points of emissions reductions could come from “high-quality” international carbon credits—more than the three-point limit originally proposed by the Commission. MEPs insisted, however, that strict safeguards must govern the use of credits purchased from partner countries.

Parliament also wants domestic permanent carbon removals to help offset hard-to-abate emissions within the EU Emissions Trading System, and called for broader flexibility across sectors to reduce compliance costs.

In a nod to concerns about energy prices and consumer impact, lawmakers supported delaying the start of the EU’s second emissions trading scheme, ETS2—from 2027 to 2028. ETS2 will cover CO₂emissions from buildings and road transport.

Regular check-ins on progress

Under Parliament’s position, the Commission would be required to assess the EU’s progress every two years. These reviews would consider scientific data, technological developments, competitiveness, and the status of carbon removals.

Depending on the findings, the Commission could propose revisions to the climate law—including adjustments to the 2040 target—or introduce additional measures to protect European industry and social cohesion.

Setting the stage for global talks

The decision comes as the EU prepares for the COP30 climate summit in Belém, Brazil, later this year, where international climate ambition is expected to take center stage. A delegation from the European Parliament will attend the talks from 17 to 21 November.

The EU’s climate framework already requires a 55% emissions reduction by 2030. Adding a firm 2040 milestone is seen as key to accelerating the long-term transition to a climate-neutral economy.