EU officially adopts the 2040 climate target, postpones ETS 2 by one year

The EU has formally adopted its 2040 climate target, committing to a 90% reduction in greenhouse gas emissions from 1990 levels as part of its pathway to net zero by 2050. At the same time, the EU announced a one-year delay to the launch of ETS 2, now scheduled for 2028, with auctioning to begin in 2027.
ETS 2 will expand carbon pricing to sectors such as buildings and road transport, marking a significant extension of the EU’s carbon market into consumer-facing emissions. The delay reflects concerns over energy affordability and social acceptance, highlighting the EU’s effort to balance climate ambition with economic realities.
The framework also signals a potential future role for limited high-quality international carbon credits from 2036, although these will remain outside EU ETS compliance. Overall, the development reinforces the EU’s long-term decarbonization trajectory while introducing greater structural complexity to carbon market design.
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