EU 2040 Climate Law Enters Into Force: 90% Emissions Cut by 2040

Regulation EU 2026/667 entered into force on April 7, 2026, enshrining a legally binding target to cut EU greenhouse gas emissions by 90% (net) by 2040 compared to 1990 levels — the world's most ambitious medium-term climate target by any major economy. The law, adopted after a provisional agreement in December 2025 and final Council ratification on March 5, 2026, allows up to 5% of the 90% to be achieved via international carbon credits, with the remaining 85% delivered domestically. It sets a straight-line trajectory from the EU's 2030 target (−55%) to net-zero by 2050, giving industry and investors a clear long-term signal.