The European Commission has taken a significant step forward in its climate policy by proposing a new binding target to reduce net greenhouse gas emissions by 90 percent by 2040, relative to 1990 levels. This proposal, announced on Tuesday, aims to amend the EU Climate Law, introducing a rigorous midpoint target to facilitate tracking and ensure compliance.

The revised target aims to offer a clearer path for businesses and governments, enhancing predictability for future investments and strategic planning. According to the Commission, this move comes after extensive consultations with industry stakeholders, providing the flexibility needed for effective implementation across various sectors.

Executive Vice-President Teresa Ribera emphasized the dual focus of the Commission's approach, stating, "Today we decided to continue with our climate policies as they are pivotal to achieving other social and economic policy goals, such as security and prosperity of our people and companies. We are not choosing between the economy and the green agenda, we are choosing both."

Previously, the EU Climate Law mandated a 55 percent reduction in emissions by 2030 and targeted net-zero emissions by 2050. The new 2040 benchmark is designed to ensure that the EU remains on track for its 2050 goal while addressing the unique challenges faced by different economies, especially in sectors like agriculture.

However, the announcement arrives amidst scrutiny over the Commission’s legislative adjustments under the Omnibus I package, which critics argue could undermine the EU's climate commitments. The Omnibus I proposal, introduced in February, seeks to simplify existing sustainability laws by modifying the Corporate Sustainability Due Diligence Directive (CSDDD). This modification would limit due diligence to direct suppliers and delay the implementation of certain requirements, potentially allowing companies to bypass stringent environmental accountability.

Critics argue that such legislative easing could compromise the EU's leadership in climate and sustainability, particularly as the EU has only been rated as achieving a "medium" level of progress in emission reduction as of 2025.

Despite these controversies, the Commission asserts that the Omnibus I is intended to streamline obligations and reduce compliance burdens on smaller companies, maintaining that these adjustments will not detract from the EU's overall environmental goals.

As the EU navigates these complex legislative and environmental challenges, the global community watches closely to see how these policies will align in the ongoing fight against climate change.