Confronting Climate: European Law Amendment Marks “Decisive Moment”

17 February 2026

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Guest article written by Marta Olavarría, CORPORANCE Asesores de Voto

The recent amendment of the European Climate Law marks a decisive moment in the European Union’s climate strategy. Following approval by the European Parliament, the updated framework strengthens the EU’s climate ambition while explicitly addressing concerns about industrial competitiveness and economic resilience.

At the core of the reform is a new legally anchored intermediate target: a 90% reduction in net greenhouse gas emissions by 2040 compared to 1990 levels. This milestone serves as a bridge between the existing 2030 target and the EU’s legally binding goal of climate neutrality by 2050. According to analysis from the European Parliamentary Research Service, the 2040 target is designed to provide long-term investment certainty while aligning with updated scientific recommendations on limiting global warming.

A notable innovation is the controlled use of high-quality international carbon credits from 2036 onward, allowing limited flexibility (up to five percentage points of the reduction target). While this mechanism offers cost-efficiency and global cooperation opportunities, new safeguards aim to ensure that such credits do not undermine EU strategic interests or delay domestic decarbonisation efforts.

The reform also adjusts the timeline of the EU Emissions Trading System extension (ETS2), postponing its implementation to 2028. This delay reflects concerns about energy affordability and social impacts, particularly in buildings and road transport, sectors directly affecting households and small businesses.

Crucially, the law introduces a biennial review mechanism led by the European Commission. By incorporating scientific updates, technological progress, competitiveness indicators, and energy price trends, the EU ensures that climate ambition remains dynamic and responsive. This governance structure signals a strategic shift: climate policy is no longer viewed solely as an environmental imperative but as a pillar of economic strategy and industrial transformation.

In essence, the reform demonstrates the EU’s attempt to balance environmental leadership with global competitiveness, positioning climate action not as a burden, but as a driver of innovation, resilience, and long-term prosperity.

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📢 REFORM OF THE EU CLIMATE LAW: CLIMATE AMBITION + COMPETITIVENESS

Following the vote in the European Parliament, the European Union has approved amendments to the EU Climate Law, introducing highly significant reforms:

✅ New intermediate target in the EU’s climate roadmap: reduce net greenhouse gas (GHG) emissions by 90% by 2040, as a key step toward achieving climate neutrality by 2050.

✅ Flexibility with international credits (from 2036): From 2036 onwards, up to 5 percentage points of the reduction may be covered through high-quality international carbon credits (more than initially proposed by the Commission).

➡️ Safeguards are also introduced to prevent the financing of projects that run counter to the EU’s strategic interests.

✅ Adjustments to the ETS2 timeline (European Trading System):
The launch of ETS2 (covering emissions from fuels used in buildings and road transport) is postponed until 2028.

✅ Periodic review and possibility of adjusting the 2040 target:
The European Commission will prepare a progress report every two years, taking into account:

• Updated scientific evidence
• Technological developments
• Industrial competitiveness
• Energy price trends and their impact on households and businesses
• The state of required net removals

This opens the door to revising the 2040 target or strengthening support measures if necessary.

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Last Updated: 17 February 2026