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What is the European Climate Law?

  • On June 24 2021, the European Parliament formally approved the new European Climate Law
  • The EU Commission proposed the first draft of the new law in March 2020
  • The European Parliament and the European Council reached an agreement on the proposal in April 2021
  • As soon as the European Council also formally approves, the European Climate Law will enter into force
  • As one of the critical elements of the European Green Deal, the European Climate Law enshrines the EU's commitment to reaching climate neutrality by 2050.

What is included?

  • An EU-wide legal target for climate neutrality by 2050 that binds the EU Institutions and national governments.
  • A 2030 climate target of at least 55% reduction of net emissions as compared to 1990, with clarity on the contribution of emission reductions and removals.
  • Recognition of the need to enhance the EU's carbon sink through more ambitious regulation.
  • A process for setting a 2040 climate target, taking into account an indicative greenhouse gas budget for 2030-2050.
  • A commitment to negative emissions after 2050.
  • The establishment of a European Scientific Advisory Board on Climate Change that will provide independent scientific advice.
  • A commitment to engage with sectors to prepare sector-specific roadmaps charting the path to climate neutrality in different areas of the economy.

What's next?

Further legislative action will follow. The European Commission has already announced it will table a legislative "Fit for 55 package" to achieve the new emission reduction goal for 2030.

The clock is ticking! Start reporting on climate risk and sustainability by understanding with the EU Climate Law. Contact our policy experts to learn more about solutions adapted to your sustainability reporting needs.

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