It sets its most ambitious climate goal to date: Reduction of greenhouse gas emissions by 90% by 2040. At the same time, the transition to the green economy faces serious social challenges, with Member States delaying the submission of plans that will protect the most vulnerable citizens.
What does the EU’s climate aim for 2040?
The European Commission proposes a reduction in greenhouse gas emissions by about 90% compared to 1990 levels, by 2040. For the first time, part of this reduction can be achieved through international carbonated credit, ie investment in clean energy or reforestation in third countries, which will be “measured”.
What is the “market” and why is it causing reactions?
Carbonate credits allow states or companies to “buy” emissions of emissions by funding emissions reduction projects elsewhere. This practice is disputed because:
- There is a risk of “transferring” the problem out of the EU, rather than being real.
- Many projects in the past have not given the promising reductions.
- Legal doubts about compatibility with European law.
The EU sets a 3% threshold of total reduction coming from such credits after 2036, but some countries are pushing for a higher percentage.
How will the most vulnerable citizens be protected from increases in energy costs?
The EU plans to impose a price on emissions from heating and road transports from 2027, which is expected to increase household energy accounts. To mitigate the impact, the climate fund of € 86.7 billion (2026-2032) has been created, which will fund support measures for poorer households and small businesses.
At what stage are the national social plans needed to disburse the funds?
None of the Member States, besides, managed to submit the required social climate plans until the deadline of 30 June 2025. These plans must describe how each country will use the funds to support the most vulnerable in the green transition.
This delay threatens to postpone the disbursement of funds, as the European Commission must receive all plans before activating the Fund. The evaluation of the plans will take about five months, but it has not been clear exactly when this process will begin.
What (should) include these plans?
Plans must predict measures such as:
- Investments in Renewable Energy Sources
- Home Renovations for Energy Efficiency
- Clean heating and cooling systems
- Promotion of low transport emissions such as electric vehicles
What are the key obstacles to plans?
- Political and administrative difficulties in organization and consultation.
- Concerns about the cost and social acceptance of measures.
- Inadequate participation of citizens and social actors in the formulation of plans.
What are the next steps?
The Commission calls on Member States to quickly complete their plans, but warns that it will not accept plans that do not have a transparent and sufficient participation of citizens. The delay can postpone the start of funding and endanger the social justice of green transition.
What is the total stake for the EU?
The EU is at a critical crossroads: it must achieve ambitious climate goals, while ensuring that the transition does not leave behind the most vulnerable. The success or failure of social plans and the management of carbonate credit will determine whether in 2040 it will be a milestone of meaningful change or a missed opportunity.
The European Union is making an unprecedented effort for the climate, but the social dimension of transition remains open challenge. The protection of poorer citizens and transparency in resource management will judge the success of green transition.
