The European Commission’s announcement of the proposed 90% net greenhouse gas emissions reduction target for 2040 is a strategic milestone on the road to climate neutrality by 2050. It is a vital chance to boost Europe’s climate leadership, energy security, and industrial competitiveness by signalling investors to pursue the clean energy transition.
But ambition must be matched with action. Success of EU climate policy depends on whether Europe can match this ambitious target with sufficient funding and a coherent, practical, technology-neutral and similarly ambitious policy framework — one that unlocks the right investment signals, enables all sectors to contribute, and ensures no one is left behind in the process.
Europe’s dependence on imported fossil fuels has a significant price tag, drying out the public coffers. This underscores the urgency of pursuing cost-effective, scalable, and future-proof solutions. The electrification of end uses — from transport and heating to industrial processes — offers a concrete pathway to deliver not only on Europe’s decarbonisation goals but also on its competitiveness and energy security ambitions.
Electrification, powered by clean, domestically produced electricity, reduces reliance on imported fossil fuels, cuts emissions at scale, and supports new industrial value chains. Investments in net zero sources of electricity generation, grids, storage, industrial, buildings and transport electrification need to be made today, with a clear understanding of the policy environment that will exist tomorrow. Long-term investment certainty is necessary for the industries and infrastructure projects that require decades of planning and financing.
An ambitious 2040 target sets the course and helps identifying the policy and investment gap between the 2030 climate package and the 2050 net zero goal, providing clarity for business and policymakers alike. The implementation of the Fit-for-55% at national level remains a key priority, while planning and permitting must be streamlined to meet rising electricity demand and support industrial transformation.
At the same time, this target reinforces Europe’s global climate and industrial leadership. By committing to decisive action now and over the next two decades, the EU positions itself as an early, large-scale market for clean technologies. This leadership matters — not only for global climate diplomacy but also for attracting investment, securing net-zero industrial value chains, and setting international standards in areas like carbon markets, carbon removals and sectoral decarbonisation. Global action is key to achieving the Paris Agreement goal of limiting temperature increases to 1.5 degrees Celsius. Thus, the EU must be a role model, driving increased climate protection outside its borders and preventing carbon leakage.