The European Climate Law (Regulation (EU) 2021/1119) enshrines the EU’s commitment to climate neutrality by 2050 into binding legislation and sets a legally binding target to reduce net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.
Adopted in July 2021, the law establishes the framework for achieving these targets, including regular progress monitoring, carbon budgeting and alignment of EU policies with climate objectives. It also mandates the Commission to propose a 2040 climate target, guided by a greenhouse gas budget for 2030–2050, which was published in early 2024.
The European Climate Law provides the long-term legal foundation for the EU ETS, CBAM, REPowerEU and other market-based decarbonisation tools. For Europex and its members, it reinforces the role of energy markets in delivering cost-efficient emissions reductions, scaling renewable integration and ensuring investment certainty across electricity, gas and environmental markets.