Quote from Alex bobby on September 13, 2025, 5:34 AM

EU Decision on 2040 Climate Target Delayed Amid Industry Concerns and Diplomatic Divisions

The European Union’s highly anticipated decision on its 2040 climate emissions target has been delayed, with EU diplomats confirming that environment ministers will not vote on the proposal next week as originally planned. The move underscores deep divisions among member states over how ambitious the bloc’s climate agenda should be — and how it can be balanced with industrial competitiveness at a time of mounting economic and geopolitical challenges.

At stake is a major review of the EU’s Climate Law, which sets the path for the bloc to become climate neutral by 2050. As part of that framework, the law also mandates setting a legally binding 2040 target to bridge the gap between the EU’s current 2030 target of at least 55% emissions cuts (from 1990 levels) and its ultimate 2050 climate neutrality goal.

In July, the European Commission proposed a sweeping 90% emissions reduction target for 2040 compared to 1990 levels — a level of ambition that immediately triggered resistance from several member states.

Delay Signals Lack of Consensus

Denmark, which currently holds the rotating EU Council presidency, had aimed to secure ministerial agreement on the target during an environment Council meeting scheduled for 18 September. But EU diplomats say there is insufficient consensus to move forward.

“We cannot support the text as it stands right now. It is not an ideal geopolitical timing. Also, the text was put on the table quite late,” one EU official told Euronews, stressing that more time is needed for national governments to examine the potential impacts on their economies.

Another EU diplomat said the debate will now be pushed up to heads of state at an October European Council summit, where leaders are expected to hold what is being described as a “decisive” discussion on the issue. While the diplomat ruled out a requirement for unanimity — which they warned would “reward the lowest bidders” — they did not rule out the possibility that no decision would be reached in October either.

This delay reflects how politically fraught the issue has become. The 2040 target will shape the EU’s national climate action plans under the Paris Agreement, which must be submitted to the United Nations at COP30 in Belém, Brazil next year. Any deadlock could undermine the EU’s credibility as a global climate leader.

Industry Fears Drive Opposition

Resistance to the 90% target is strongest from Central and Eastern European countries such as Slovakia and Hungary, which warn that such deep emissions cuts could devastate their heavy industries.

“These ideological proposals are more proof that Brussels bureaucrats have already lost basic contact with reality,” said Slovakia’s environment minister Tomas Taraba. “They have no idea what economic danger the European and unfortunately the Slovak industry is in.”

France, while less openly opposed to the target itself, has argued that such a major decision should be made at the level of EU heads of state and government, not by environment ministers.

The opposition highlights a long-running fault line in EU climate politics between wealthier Western and Northern states — often more supportive of ambitious targets — and more industrialized or coal-dependent Eastern states wary of economic disruption. It also reflects broader concerns about Europe’s global competitiveness at a time when its industries are under pressure from high energy costs, U.S. green subsidies, and cheap Chinese imports.

Carbon Credits and Climate Integrity

One of the most contentious technical issues in the negotiations is the possible use of international carbon credits to help meet the 2040 target. Carbon credits are tradable certificates allowing the holder to emit a certain amount of CO2, usually offset by financing emissions reductions elsewhere.

According to an EU document, diplomats are discussing how such credits could contribute to the 2040 goal without undermining the bloc’s internal carbon market — the Emissions Trading System (ETS). Some member states are also pushing for the option to store CO2 outside EU territory.

“We are not against this thought [carbon credits], but we would need more clarity on that,” one EU diplomat said.

But climate campaigners and Green lawmakers are warning strongly against what they see as an attempt to water down the EU’s climate ambition. Austrian MEP Lena Schilling, who is leading work on the 2040 target in the European Parliament, said using international credits would be “irresponsible towards taxpayers” and a “betrayal” of Europe’s youth.

“Diluting the EU climate target with carbon credits will only mean spending billions on pollution rights abroad instead of delivering real climate action here in Europe. We need at least a 90% reduction by 2040 within the EU,” said Schilling.

Sven Harmeling, head of climate policy at Climate Action Network (CAN) Europe, echoed these concerns. “It would severely undermine the ambition and environmental integrity of the EU contribution, while only delaying and increasing the cost of the transition,” he said, warning that the EU could end up transferring “tens of billions of euros” out of the bloc that could have been invested in domestic decarbonisation.

A Delicate Balancing Act Ahead

The delay in setting the 2040 target underscores the delicate balancing act facing EU policymakers: maintaining the bloc’s role as a global climate leader while safeguarding economic competitiveness and social cohesion at home. The debate is unfolding against a backdrop of rising political polarisation, energy insecurity, and slowing industrial output — all of which have made governments more wary of imposing costs on industry and consumers.

Yet with the window to limit global warming to 1.5°C rapidly closing, climate scientists say Europe cannot afford to lose momentum. The decision that EU leaders will now face in October will send a powerful signal about whether the bloc remains committed to the Paris Agreement’s long-term goals — or whether short-term economic fears will win out.

Either way, the choice will shape Europe’s climate trajectory for the next two decades, with consequences far beyond its borders.

Final Thoughts

The EU’s struggle to agree on a 2040 climate target reveals the mounting tension between its climate leadership ambitions and the economic anxieties of its member states. As the world edges closer to the critical 1.5°C threshold, the bloc’s credibility hinges on its ability to deliver bold action without sacrificing industrial stability.

If EU leaders can use the coming weeks to build consensus around a fair, realistic, and enforceable target, they could reaffirm Europe’s role as a global climate pioneer. But if political divisions prevail, the EU risks losing not only valuable time in the fight against climate change — but also its standing as a trusted leader in the global green transition.

Conclusion

The EU’s decision to postpone setting its 2040 climate target highlights just how contentious the path to climate neutrality has become. While the European Commission’s proposed 90% emissions reduction is seen by climate advocates as essential to meeting the Paris Agreement goals, several member states fear the target could cripple their industries and undermine competitiveness.

This delay gives EU leaders more time to bridge the widening gap between ambition and economic reality — but it also risks signalling hesitation at a moment when global momentum on climate action is urgently needed. The October summit will now be a decisive test of whether the EU can align its climate ambitions with its industrial and political realities, or whether internal divisions will stall its green transition.

Meta Description: The EU has delayed a decision on its proposed 2040 climate target amid fierce debate over costs, competitiveness, and carbon credits, pushing the issue to an October summit of EU leaders.