Framework for achieving climate neutrality

The European Parliament adopted by 379 votes to 248, with 10 abstentions, amendments to the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/1119 establishing the framework required to achieve climate neutrality.

The issue has been referred back to the committee responsible for interinstitutional negotiations.

Intermediate EU climate targets

Parliament supports the proposal to amend the European Climate Law, which sets a binding EU climate target for 2040 of reducing net greenhouse gas (GHG) emissions by 90% compared to 1990 levels. Looking ahead to the post-2030 period, the Commission will review relevant EU legislation to enable the achievement of both the 2040 target and the goal of climate neutrality. As part of this review, the Commission should ensure that the following elements are duly taken into account in legislative proposals, and in particular:

- starting 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% (instead of 3%) of 1990 EU net emissions corresponding to a domestic reduction of net greenhouse gas emissions by 85% compared to 1990 levels by 2040, in a way that is both ambitious and cost-efficient, supporting the EU and third countries in achieving net greenhouse gas reduction trajectories compatible with the Paris Agreement objective;

- Parliament seeks safeguards regarding the application of rigorous monitoring mechanisms;

- the role of domestic permanent removals under the greenhouse gas emissions allowance trading systems within the Union (EU ETS) to compensate for residual hard-to-abate emissions;

- enhanced flexibility within and across sectors and instruments, to support the achievement of targets in a simple and cost-effective manner;

- the realistic contribution of carbon removals to the overall effort to reduce emissions, taking into account uncertainties of natural removals and ensuring that possible shortfalls would not be at the expense of other economic sectors;

- the need to maintain, manage and, where appropriate, strengthen long-term natural sinks, to protect and restore biodiversity, to promote a sustainable and circular bioeconomy, and to take into account the effects of differences in forest age structure, natural variability and uncertainties, notably those lined to the impacts of climate change and natural disturbances in the land use, land-use change and forestry sector;

- the need to ensure and support a fair and cost-effective and socially balanced transition for all, taking into account different national situations and paying particular attention to the impacts on consumer prices, energy and transport poverty and to regions and sectors, small and medium-sized enterprises, farmers and vulnerable households affected by the transition to climate neutrality;

- simplification and reduction of administrative burden, technological neutrality, cost-effectiveness, economic efficiency and economic security;

- the need to strengthen the resilience and competitiveness of the Union's economy globally and to reduce the risk of carbon leakage;

- the availability and affordability of energy, security of supply and energy security, energy efficiency, as well as the strengthening of electricity grids and interconnections;

- the role of zero-emission, low-carbon and renewable fuels in the decarbonisation of transport, including road transport beyond 2030;

- support for innovation and access to innovative technologies across all Member States.

Evaluation and review

Parliament wants the Commission to assess progress towards the intermediate targets every two years, taking into account the latest scientific data, technological developments and the EU's international competitiveness.

The review should take into account, inter alia, (i) the evolving challenges and opportunities for the global competitiveness of European industries across Member States; (ii) evolution of energy prices and their impact on European industries and households; (iii) socio-economic impacts, including effects on employment; (iv) technological advances and deployment across all Member States and in innovative technology sectors; (v) the estimated level of net removals at Union level in relation to the targets of this Regulation; (vi) progress made towards achieving the intermediate objectives.

The Commission's report will be accompanied, where appropriate, by legislative proposals to revise this regulation, including the intermediate 2040 target.

Postponement of the EU Emissions Trading System (EU ETS2)

Lastly, Parliament supports the proposal to postpone by one year (from 2027 to 2028) the launch of ETS2, which covers CO2 emissions from the combustion of fuels in the building and road transport sectors.