European Shippers’ Council (ESC) notes that the European Parliament has adopted a position to amend the EU Climate Law, setting a legally binding target of a 90% reduction in net greenhouse gas emissions by 2040 compared to 1990 levels. This milestone is part of the EU’s broader strategy to achieve climate neutrality by 2050. The transport and logistics sectors, as significant sources of emissions, will be directly affected by these developments.
The 2040 target establishes the EU’s overall climate ambition and applies across the entire economy. To support its implementation, sector-specific measures such as the EU Emissions Trading System (ETS) play a key role. In particular, ETS2, which covers CO₂ emissions from buildings and road transport, has been postponed by one year, moving its start from 2027 to 2028. This provides shippers and operators with additional time to prepare for reporting obligations and potential carbon costs.
Member States will have flexibility to use domestic carbon removals to offset hard-to-reduce emissions, and progress toward the 2040 target will be assessed every two years, taking into account scientific data, technological developments, competitiveness, and energy prices. The EU emphasises maintaining economic prosperity and social cohesion during this transition, which may allow shippers to benefit from phased implementation measures or transitional support.