On February 10, the European Parliament voted to establish a key EU climate target. The Union must reduce carbon emissions by 90% compared to 1990 levels by 2040. At the same time, the implementation of the updated EU ETS2 emissions trading system was postponed for a year, until 2028.
According to the European Parliament's website, 436 MEPs voted in favor, while 226 were against and 12 abstained. The changes will take effect 20 days after approval by the European Council and publication in the Official Journal of the EU.
Variety of methods and restrictions
The updated legislation gives EU member states the opportunity to choose how they will achieve the set goal.
- External carbon credits. Previously, only emission reductions within the country were allowed, but starting from 2036, part of the target may be achieved through the purchase of carbon credits. This allows up to 5% of CO2 emissions to be compensated, although the European Commission had proposed setting this limit at 3%.
However, a number of restrictions exist:
- the use of carbon credits is prohibited in sectors regulated by the EU Emissions Trading System (EU ETS);
- carbon credits must be high-quality and only from EU partner countries that comply with the goals of the Paris Climate Agreement;
- projects must not contradict the strategic objectives of the European Union, for which the new legislation provides a number of safeguards.
- Internal projects. For emissions hardest to reduce under the EU ETS, internal permanent carbon sinks may be used for compensation.
In general, to achieve climate targets with greater quality and less cost, more flexibility between different sectors and instruments is proposed. The European Parliament emphasizes that the green transition and the strengthening of competitiveness must go hand in hand rather than conflict with each other.
The launch of the new ETS2 system is also postponed by one year – from 2027 to 2028. It will cover CO₂ emissions from fuel combustion in buildings and road transport, meaning it will directly affect the daily lives of millions of Europeans.
Monitoring progress toward the target
The Commission plans to systematically monitor the EU’s progress in achieving the target. Every two years, an assessment of progress will be conducted, taking into account factors such as new scientific data, technological innovation, and the competitiveness of European industry. Among the factors considered in the assessment will be trends in energy prices, including their impact on industry and the public. Additionally, it will be assessed whether the EU has sufficient net carbon removal to move confidently toward the 2040 goal.
However, this target is not necessarily final. The assessment may become grounds for revising emission reduction parameters or for strengthening the tools to achieve it. The focus is on protecting the well-being of European society and the competitiveness of business.
EcoPolitic previously reported that the European Investment Bank recently decided to allocate €3 billion to ease the transition to the EU ETS2 system. These funds are intended for preliminary financing of energy efficiency measures, primarily for small and medium-sized households.
Overall, the adoption of the EU's climate target faced internal protest. In November 2025, the environment ministers of the Union's member states held 18-hour negotiations to reach an agreement. Several countries insisted on the importance of maintaining the resilience of their own economies, which could be affected by the European Union's environmental ambitions. A preliminary agreement on the EU's climate goal was reached in December 2025.
The permission to use international carbon credits became a concession that will allow existing emissions to be offset by clean projects. Additionally, in December of last year, the European Commission adopted a regulation aimed at fostering the development of a domestic market for carbon removal projects.
Ukraine plans to reduce emissions by more than 65% from the 1990 level by 2035. This indicator was established in the second Nationally Determined Contribution (NDC2) in November 2025.
