EU Reveals Long-awaited Goal to Reduce Greenhouse Gas Emissions by 2040

EU’s New Initiatives to Reduce Greenhouse Gas Emissions

The 2040 target is designed to secure progress toward the 2050 climate-neutral objective, providing policy transparency for citizens, fostering industrial investment, and enhancing global diplomacy.

Carbon Offsets from Non-European Sources: Starting in 2036, nations may satisfy up to 3% of their reduction goals using carbon credits produced by climate initiatives outside the EU.

Technological Neutrality: The EU accepts various clean or low-carbon technologies to decrease pollution, such as Renewable energy, Nuclear energy, Carbon capture and storage (CCS), and Carbon removal.

Polices that are Complementary:

The Fit for 55 initiative aims for a 55% reduction by 2030, broadening the European Union Emissions Trading System (EU ETS) and introducing the Carbon Border Adjustment Mechanism (CBAM).

Heavy industries might receive free permits as exemptions to safeguard their competitiveness.

India's Promises to Cut Emissions

India has initiated the LiFE mission (Lifestyle for Environment) and revised its NDCs (Nationally Determined Contributions) as part of the Paris Agreement.

According to its revised NDC 2022, India commits to:

45% decrease in emissions intensity (CO₂ output per GDP unit) by 2030, relative to 2005 figures.

By 2030, half of the installed electricity capacity will originate from non-fossil fuel sources.

Establishing a carbon sink of 2.5 to 3 billion tonnes of CO₂ equivalent (GtCO₂e) through the expansion of forests and tree canopy.

What is the status of GHG Emission Reduction progress?

Advancements in the European Union: Successfully reduced emissions by 37% since 1990. In 2023, emissions decreased by 8.3%, despite the economy still expanding.

The EU is currently employing a combination of clean energy sources such as renewables (solar, wind), nuclear energy, and carbon capture technology to achieve its objectives.

The EU possesses robust policies and mechanisms such as CBAM, ETS, and Horizon Europe.

India’s 4th Biennial Update Report (BUR-4) emphasized a 7.93% decline in GHG emissions in 2020 relative to 2019.

Emission intensity (per unit of GDP) experienced a 36% decrease between 2005 and 2020.

As of October 2024, India’s installed power capacity from renewable sources hit 46.5%, amounting to around 203GW.

Solar energy on its own represented approximately 92 GW of this capacity.

India placed 10th in the Climate Change Performance Index 2025, achieving strong scores in GHG emissions and energy consumption but performing less effectively in climate policy and the implementation of renewables.

Obstacles in Reducing GHG Emissions

The EU encounters obstacles in cutting GHG emissions because of industrial pushback for lenient regulations, dependence on overseas carbon credits that might transfer responsibilities to less wealthy countries, and sluggish advancement in the transportation sphere, where road emissions are still elevated.

India’s Significant Reliance on Coal: Coal continues to drive approximately 75% of emissions in India. Additionally, the steel sector is expanding rapidly and remains significantly reliant on coal, which exacerbates the pollution issue.

Climate Objectives Must Be More Robust: India has established climate objectives (NDCs), yet specialists argue they are insufficient to restrict global warming to 1.5°C.

Policy Gaps Persist: India is establishing a carbon market (where businesses can exchange emission allowances), but it is currently voluntary and not fully operational yet.

What are the Recommendations?

The EU needs to strengthen offset regulations by permitting solely high-integrity credits, accelerate transport decarbonisation through vehicle mandates, and increase funding—leveraging CBAM revenues—to aid at-risk regions and industries.

India has the potential to enhance its NDC goals through greater emission reductions in vital sectors, encourage a transition to green industries (such as hydrogen and electric arc furnaces), and implement mandatory carbon trading by 2026 with rigorous monitoring.

Final thoughts

In the quest for net zero, the EU's 2040 climate target marks a crucial juncture between ambition and viability.

Although adding carbon offsets offers strategic flexibility, it also brings up significant governance and ethical issues.

It emphasises the necessity for India and the Global South to prepare domestic policies for a green future while simultaneously promoting fair and just climate action on international forums.