European Climate Law

What is it? 

The European Climate Law is a landmark piece of legislation that enshrines the commitment of the European Union (EU) to climate neutrality by 2050, into law. Climate neutrality by 2050 means achieving net zero. The law was adopted by the European Parliament and the Council of the European Union in June 2021, and it entered into force on the 29th of July in 2021, 20 days after its publication. 

What’s included? 

The law sets an immediate target of reducing net greenhouse gas emissions, by at least 55% by 2030, compared to 1990 levels. This comes from the recognition of the need to enhance the EU’s carbon sink, which are forests and other ecosystems that absorb carbon, therefore removing it from the atmosphere and offsetting CO2 emissions. 

The law also includes a process for setting a 2040 climate target, established through the indicative greenhouse gas budget for 2030-2050, creates a system for the monitoring of progress and to take further action if needed. 

To provide predictability for investors and other economic stakeholders, these will be engaged to prepare sector-specific roadmaps charting the path to climate neutrality in different areas. 

To ensure that the transition to climate neutrality is irreversible, the law also includes stronger provisions on adaptation to climate change.