On 13 November, the European Parliament adopted its position on the 2040 Climate Target. The outcome has been met with mixed reactions across the climate and industrial policy community. Parliament chose to mirror the Council’s position, which represents a step back from the ambition originally proposed by the European Commission. Even so, the vote still provides a necessary foundation for Europe’s long term climate direction.
For us, the conclusion is clear. Targets are important, but they only lead to emissions reductions when they are backed by stable policies and real solutions that can be deployed across the economy.
A Crucial Point on Carbon Credits
One part of Parliament’s position stands out. MEPs stressed that any carbon credits used towards the 2040 target must be properly regulated and must genuinely reduce emissions. They also insisted that credits should not cause environmental damage or undermine investment in clean technologies within Europe.
This matters. Europe cannot rely on accounting exercises that shift emissions on paper while slowing progress in sectors that need real transformation. If carbon credits are to play a role, they must support investment in decarbonisation, including the development of carbon capture and storage for industries with unavoidable emissions.
"A low carbon Europe by 2040 is within reach, but only if a range of solutions work together. Renewables, electrification, efficiency, circularity, and CCS all have a role to play. No single solution can achieve the full scale of reductions needed." - Bergur Løkke Rasmussen, CCS Europe Director
A Necessary Outcome, Even if Imperfect
This vote was not a win for climate ambition. It is important to acknowledge that. However, it was still a better outcome than the alternative. Several political groups had pushed for a complete rejection of the 2040 target. Such an outcome would have created uncertainty at the very moment when Europe needs long term policy clarity.
The adopted position, while less ambitious than what many stakeholders wanted, avoids this uncertainty. It keeps Europe on a decarbonisation path and gives Parliament and the Council a starting point for constructive inter institutional negotiations.
What the Next Phase Should Deliver
As trilogue negotiations begin, the focus should shift from general ambition to practical delivery. Three priorities are essential.
1. Match the target with the right enabling measures
Setting a target is not enough. Europe needs clear and predictable pathways for industrial decarbonisation. This includes the policies that will make it possible to deploy CCS at the scale required. Many industries are ready to invest, but they need long term certainty.
2. Protect Europe’s competitiveness
Climate policy cannot come at the expense of Europe’s industrial capacity. If the policy landscape remains unstable, investment may move to regions that provide clearer signals. A 2040 climate target should support innovation and growth in Europe, not drive activity elsewhere.
3. Recognise the essential role of CCS
For several industrial sectors, CCS is the only realistic way to achieve deep emissions reductions in the timeframe to 2040. Policymakers should reflect this reality by incorporating CCS into infrastructure planning, funding programmes, and sector specific strategies.
A Vision for a Low Carbon Europe
We continue to support a climate pathway that combines ambition with practical delivery. A low carbon Europe by 2040 is within reach, but only if a range of solutions work together. Renewables, electrification, efficiency, circularity, and CCS all have a role to play. No single solution can achieve the full scale of reductions needed.
Our 2040 vision sets out how Europe can reduce emissions while strengthening the industries that support jobs, competitiveness, and innovation. You can explore this vision here.
Shaping Europe’s Climate Path
The Parliament vote does not close the debate. It opens a critical phase in which policymakers will determine whether the 2040 target becomes a driver of industrial transformation or a source of uncertainty.
The opportunity to set a credible and competitive climate path is still there. We encourage negotiators to seize it. CCS Europe will continue to support a balanced and realistic approach that keeps Europe on track and keeps industry in Europe.
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By Bergur Løkke Rasmussen, CCS Europe Director