EU 2040 climate target: from ambition to action for clean heat & carbon removals
By 2040, the European Union should meet a 90% net greenhouse gas emissions target compared to 1990. The draft agreement on the EU Climate Law reinforces a technology-neutral approach and puts energy affordability, security of supply and domestically produced energy at the heart of delivery.
Setting a 90% target was a bold move from EU institutions that need to be turned into a post-2030 framework that protects households, keeps Europe competitive and unlocks investment at scale.
Heating: a clear opportunity to move from targets to action
The draft text strengthens criteria that matter for the bioenergy value chain: simplification, technology neutrality, and energy availability and affordability, with a focus on security of supply and promoting domestically produced energy.
Nevertheless, the draft also includes a postponement of ETS2 to 2028, delaying de facto the decarbonisation of buildings and road transport. This makes it even more important that the EU and Member States accelerate the enabling framework for renewable heat and support investments through complementary measures. In this context, the upcoming Heating and Cooling Strategy is expected to lead the way.
Carbon removals: building a credible market
Bioenergy Europe believes that the draft agreement rightfully acknowledges the role of domestic permanent carbon removals in the EU’s pathway to 2040. Developing BioCCS and reflecting carbon removals in the EU climate architecture is the right way to compensate for residual emissions from hard to abate sectors and design an EU ETS fit for the future.
The text also acknowledges the need to enable CO₂ transport and storage solutions at scale, including the possibility of CO₂ storage outside the EU under agreements and conditions equivalent to Union law. This approach will support early project development and put the basis for a European carbon management market.
International credits: limited role, strong safeguards
The draft foresees a limited contribution of high-quality international credits from 2036, capped at up to 5% of 1990 EU net emissions, with their acquisition and use regulated in Union law and tied to strict safeguards. The text also states that international credits should not play a role for compliance in the EU ETS.
Photo credit: Council of the European Union 2025
