Article 1, point (1) — Amendments to Regulation (EU) 2021/1119 (adding a 2040 target to Article 1)
in Article 1, second paragraph, the following sentence is added: ‘This Regulation also sets out a binding Union target for 2040.’
EU carbon rules / Regulations / 2040 Target Amendment
In force Regulation Climate targets
2040 Target Amendment
90% net reduction by 2040; up to 5% international carbon credits from 2036
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Who the regulation applies to
This regulation applies to:
- Member States (bound by the parent Regulation (EU) 2021/1119, the European Climate Law, and must jointly achieve a target of reducing net greenhouse gas emissions by at least 90% compared with 1990 levels by 2040, of which 85% domestic reduction)
- The European Commission (must review the relevant legislation, assess and report every two years on the implementation of intermediate targets and decarbonisation pathways; 2031–2035 is the pilot period for international carbon credits)
- Participants in the emissions trading system for buildings, road transport and other additional sectors (ETS2) — its operation is postponed to 2028
This Regulation is an amendment to Regulation (EU) 2021/1119 and postpones the start of operation of the emissions trading system for buildings, road transport and additional sectors (ETS2) to 2028.
The following provisions define its scope:
Article 2 — Postponement of the operation of emissions trading for buildings, road transport and additional sectors
The operation of emissions trading for buildings, road transport and additional sectors set out in Chapter IVa of Directive 2003/87/EC shall be postponed until 2028. The rules set out in Article 30k(2), points (a) to (e), of Directive 2003/87/EC shall apply. The provisions of Article 10a(8b) of Directive 2003/87/EC shall apply also in 2026.
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What the regulation requires
| Duty | Trigger | Evidence | Timing |
|---|---|---|---|
| Prepare for a 90% net reduction by 2040 The EU 2040 target is enshrined in law, with up to 5% international credits from 2036. | High-emitting industries and exporting companies | Corporate transition plans, decarbonisation roadmaps | 2040 target; credit rules from 2036 |
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Key provisions
Article 4(3) — binding 2040 Union target
In order to reach the climate-neutrality objective set out in Article 2(1), the binding Union 2040 climate target shall be a reduction of net greenhouse gas emissions (emissions after deduction of removals) by 90 % compared to 1990 levels by 2040.
Article 4(5)(a) — international credits (up to 5 % from 2036)
... from 2036, an adequate contribution towards the 2040 climate target of high-quality international credits under Article 6 of the Paris Agreement of up to 5 % of 1990 Union net emissions, corresponding to a domestic reduction of net greenhouse gas emissions by 85 % compared to 1990 levels by 2040 ...
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Related regulations
- European Climate Law Regulation (EU) 2021/1119 In force
- Effort Sharing Regulation (ESR) Regulation (EU) 2023/857 In force
- LULUCF Amendment Regulation (EU) 2023/839 In force
- CSRD Corporate Sustainability Reporting Directive Directive (EU) 2022/2464 In force
- CSRD/CSDDD Deadline Postponement (stop-the-clock) Directive (EU) 2025/794 In force
- Omnibus I Amendment Directive (EU) 2026/470 In force
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