EU leaders agree on more flexibility in achieving 2040 climate target

EU leaders agreed on Thursday to allow more flexibility in achieving the yet-to-be decided emission reduction target for 2040 in light of economic concerns.

A joint statement adopted by leaders stressed "the need for a revision clause" of the upcoming target.

This assessment is to be carried out "in light of latest scientific evidence, technological advances, and evolving challenges to and opportunities for the EU's global competitiveness."

Leaders also called for a "realistic contribution" from technological solutions to capture carbon dioxide from the atmosphere to the overall reduction of greenhouse gases, as well as an "adequate level" of high-quality international certificates.

The EU has previously set itself the goal to become climate-neutral by 2050. The European Commission has recently proposed to reduce greenhouse gas emissions by 90% by 2040 compared to 1990 levels.

EU countries have however struggled to agree on new reduction commitments amid concerns over the economic implications of fighting climate change and the need to improve the bloc's competitiveness.

"Europe's climate ambitions and the competitiveness of our economy go hand in hand," wrote European Council President Antonio Costa, who chaired the talks, on X.

"We need to be pragmatic and flexible in our strategy," he added.

To boost competitiveness, EU leaders agreed to advance efforts to cut red tape for businesses by reducing administrative, regulatory and reporting obligations.

Several environmental reporting and due diligence rules are currently under review. More needs to be done in the areas of agriculture, digitalisation, defence and the chemical industry, the statement said.

In addition, leaders called for a revision of the phase-out of combustion vehicles in the EU planned for 2035.