EU 2040 Climate Target

The Council of the European Union (the “Council”) has approved the amended European Climate Law (the “European Climate Law”) and published Regulation (EU) 2026/667 (the “Regulation”) in respect of the 2040 intermediate climate target.  The European Climate Law, with direct effect in Ireland, was first adopted in 2021 and established the EU’s long-term climate policy framework in line with the Paris Agreement.

Background

The European Climate Law sets objectives for achieving climate neutrality by 2050 and reducing net emissions by at least 55% by 2030.  The Regulation introduces a 2040 intermediate climate target.

Following the ‘Europe’s 2040 climate target’ communication in February 2024, the European Commission (the “Commission”) proposed the new climate target on 2 July 2025.  EU leaders stressed the need for a balanced approach – one that protects and boosts the EU’s competitiveness while also ensuring a socially fair transition.  They also called for a framework to support the