On 13 November 2025,
the European Parliament adopted amendments to Regulation (EU) 2021/1119, reinforcing the EU’s legal framework for achieving climate neutrality by 2050. The revised regulation establishes a binding intermediate climate target for 2040, aiming for a 90% net reduction in greenhouse gas emissions compared to 1990 levels.
The updated framework builds on the 2030 climate target and incorporates scientific recommendations from the European Scientific Advisory Board on Climate Change and the Intergovernmental Panel on Climate Change. The 2040 target accounts for emissions reduction potential, cost-effectiveness, technological readiness, energy security, and fairness among Member States.
The regulation outlines the importance of both natural and technological carbon removals and introduces the possibility of using international credits—up to 5% of 1990 EU net emissions starting in 2036—under strict quality and environmental standards. These measures aim to balance residual emissions, particularly in hard-to-abate sectors.
The amendments emphasize support for industrial decarbonisation, the role of zero- and low-carbon energy sources, and the development of clean technologies. Specific provisions address the resilience and competitiveness of EU industries, energy affordability, and fair burden-sharing across Member States, including island and outermost regions.
A biennial review mechanism is introduced, requiring the European Commission to assess progress on targets, energy price trends, technological deployment, and social impacts. Based on these assessments, the Commission may propose legislative updates to align policy with evolving circumstances.
“The Clean Industrial Deal is putting in place the conditions for a successful transition, focusing on both decarbonisation and industrial renewal,” the document states, noting new financial mechanisms such as the Industrial Decarbonisation Bank and a revised state aid framework.
The amendments also postpone the launch of emissions trading for buildings, road transport, and additional sectors under Directive 2003/87 until 2028.
