Forslag til EUROPA-PARLAMENTETS OG RÅDETS FORORDNING om ændring af forordning (EU) 2021/1119 om fastlæggelse af rammerne for at opnå klimaneutralitet

EN EN
EUROPEAN
COMMISSION
Brussels, 2.7.2025
COM(2025) 524 final
2025/0524 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
amending Regulation (EU) 2021/1119 establishing the framework for achieving climate
neutrality
{SWD(2025) 524 final}
Offentligt
KOM (2025) 0524 - Forslag til forordning
Europaudvalget 2025
EN 1 EN
EXPLANATORY MEMORANDUM
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
As confirmed in the Competitiveness Compass1
, Europe has set out an ambitious framework
to become a decarbonised economy by 2050. It will stay the course, with a Clean Industrial
Deal, aimed at securing the EU as an attractive location for manufacturing, including for
energy intensive industries, and promoting clean tech and new circular business models, in
order to meet its agreed decarbonisation objectives. Their implementation will also strengthen
the EU’s energy independence from imported fossil fuels. As highlighted in the Draghi
Report on the Future of European Competitiveness2
, decarbonisation is not only crucial for
the planet, but also a key driver of economic growth when integrated with industrial,
competition, and trade policies.
The EU has set its climate targets for 2030 and 2050 in Regulation (EU) 2021/1119
establishing the framework for achieving climate neutrality (the European Climate Law).
Article 4(3) of the European Climate Law requires an intermediate 2040 climate target to set
the pace for EU-wide reductions of net GHG emissions. Setting a 2040 target will provide
investors and EU businesses with predictability and a clear indication of the transition
pathway needed, to drive business decisions and unlock private investment.
On 6 February 2024, the Commission published a Communication on the Union’s climate
target for 20403
, setting a path from the already-agreed intermediate 2030 target to climate
neutrality by 2050. Taking into account the scientific advice by the European Scientific
Advisory Board on Climate Change and based on a detailed impact assessment and report on
the carbon budget4
, the Communication presented a 90% net GHG emission reduction
compared to 1990 levels as the recommended target for 2040.
A 90% target puts the EU on the pathway which provides the greatest overall benefits in
terms of competitiveness, resilience, independence, autonomy, a just transition and ensuring
that the EU meets its commitments under the Paris Agreement.
The EU recognises climate change as an existential threat closely linked to global security,
peace and sustainable development. With the 2040 target the EU stays the course on its
climate action while continuing to diplomatically engage partner countries to reduce global
emissions and reach climate neutrality.
• Consistency with existing policy provisions in the policy area
The EU has been pursuing an ambitious decarbonisation agenda. The ‘Fit for 55’ package of
legislation set the EU on a path to reach its climate targets in a fair, cost-effective and
competitive way. Full implementation of the legislative framework in place for meeting the
2030 climate and energy targets is a precondition for the EU to stay on course to the 2040
target on the way to climate neutrality in 2050.
1
COM(2025) 30 final.
2
The Draghi report on EU competitiveness.
3
COM(2024) 63 final.
4
SWD(2024) 63 final.
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The impact assessment5
accompanying the 2040 climate target communication shows that
achieving a 2040 climate target would imply greenhouse gas emission reduction efforts by all
sectors, and enhancement of removals, which need to be enabled by various policies. All zero
and low carbon energy solutions (including renewables, nuclear, energy efficiency, storage,
CCS, CCU, carbon removals, geothermal and hydro-energy, and all other current and future
net-zero energy technologies) are necessary to decarbonise the energy system by 2040.
Following the setting of the target for 2040, and in line with the foreseen reviews, the
Commission will prepare a policy architecture beyond 2030 taking into account fairness,
technological neutrality and cost-efficiency, strengthening EU competitiveness, ensuring a
just transition and enhancing environmental sustainability.
In designing such future architecture, the Commission will examine how simplification and
flexibilities across sectors could facilitate the achievement of the 2040 target, fostering
convergence while taking into account Member States specificities. New technological
developments, including space technology, should also be taken into account. The future
architecture should also reflect the necessary investment needs and opportunities, in order to
address social, economic and environmental impacts of the transition. Policies to implement
the 2040 climate target will be guided by solidarity and fairness to ensure a just transition for
all Member States and their citizens.
In designing the policy architecture beyond 2030, the Commission envisages to include a role
for the limited use of high-quality international credits under Article 6 of the Paris Agreement
in the second part of the 2030-2040 decade. Their specific role and deployment would need to
be based on a thorough impact assessment and subject to the development of Union law
setting robust and high integrity criteria and standards, and conditions on origin, timing and
use of such credits. The Commission should analyse in the impact assessments on the post-
2030 framework the possible limited use of international credits, so that 3% of 1990 EU net
emissions could be counted towards the 2040 target. Should the post-2030 package, as
adopted by the co-legislators, include a different percentage of credits, the Commission could
propose to amend the Climate Law in the context of the review set out in Article 11. These
international credits should not play a role for compliance in the EU carbon market. These
international credits should be accounted on the basis of a linear trajectory and they should
come from credible and transformative activities, and support third countries with net
emission reduction trajectories that are compatible with the Paris Agreement objective to hold
the increase in the global average temperature to well below 2 °C and pursue efforts to limit
the temperature increase to 1,5 °C above pre-industrial levels while enabling and supporting
the creation of net-zero supply chains. In line with Article 6 of the Paris Agreement, the EU
should agree with the concerned third countries on the sharing of the mitigation benefits.
The future architecture should also include incentives, e.g. on the occasion of the review of
the ETS Directive in 2026, to build a business case for domestic permanent carbon removals
(for example Biogenic emissions Capture with Carbon Storage (BioCCS) and Direct Air
Capture with Carbon Storage (DACCS)) to compensate for residual emissions from hard to
abate sectors.
As a next step, the Commission will work with the Council Presidency to finalise the
communication of the NDC, which will also include an indicative figure for 2035, to the
UNFCCC ahead of COP 30.
5
SWD(2024) 63 final.
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The Commission has also assessed the consistency of the initiative with the European Climate
Law’s objectives, as required by Article 6(4) of the European Climate Law, in the impact
assessment accompanying the 2040 climate target Communication.
• Consistency with other Union policies
The initiative is linked to many other policy areas, as all EU actions and policies should foster
EU competitiveness, and a just transition towards climate neutrality and a sustainable future.
With the Competitiveness Compass and the Clean Industrial Deal, the Commission has set the
course to reignite economic dynamism in the EU with a growth and prosperity strategy
bringing together climate and competitiveness. The Clean Industrial Deal for competitive
industries and quality jobs sets out the workplan to support and create the right conditions for
companies to reach common decarbonisation goals and to benefit from the rapidly expanding
global market for net-zero technologies, which is projected to triple to an annual worth of
around EUR 600 billion globally by 2030.6
To achieve the long-term competitiveness of EU
industry as it transitions to climate neutrality, the Clean Industrial Deal envisages several
measures, including a new Clean Industrial Deal State Aid Framework, the establishment of
an Industrial Decarbonisation Bank aiming to mobilise up to €100 billion in funding for
innovative decarbonisation projects, a revised public procurement framework to support the
development of lead markets for clean technologies and products. The Clean Industrial Deal
also envisages initiatives to improve access to critical materials, to promote circular
production methods and to ensure a level playing field for the EU industry. Innovation plays a
central role across all these efforts, driving the development and deployment of breakthrough
technologies, accelerating industrial transformation, and enabling EU companies to lead in the
global net-zero economy. The Union aims to increase sustainable and resilient production in
Europe and should create the right conditions to crowd in private and public investment
across the value chain. These efforts will help the EU’s industrial renewal while reducing its
environmental footprint and strengthening the resilience of its supply chains.
The new Clean Industrial Deal State Aid framework was published on 25 June and further
simplifies the process for Member States to grant aid to energy-intensive industries and clean-
tech sectors, without creating undue competitive distortions. Moreover, the Commission is on
track to launch a pilot for the upcoming Industrial Decarbonisation Bank already in 2025.
This pilot will be an auction with a budget of EUR 1 billion aimed at decarbonising industrial
process heat and will benefit companies across various industrial sectors.
Securing affordable energy is a key condition for the competitiveness of our industry. As
highlighted in the Draghi Report and the Clean Industrial Deal, Europe’s dependence on
imported fossil fuels is one of the main causes of high and volatile energy prices. The
implementation of the Affordable Energy Action Plan7
, which envisages immediate concerted
action to lower energy costs, has advanced, notably with the establishment of the Energy
Union Task Force . Grids and interconnections are crucial for the well-functioning of the EU
electricity market and accelerating the roll-out of clean energy. The European Investment
Bank (EIB), in collaboration with the Commission, developed new products to offer counter-
guarantees to scale up manufacturing of grid components and to boost Power Purchase
Agreements. In 2025, the Commission will also put forward a legislative proposal for an
Industrial Decarbonisation Accelerator Act (IDAA), with the aim to foster competitive,
sustainable and resilient production in energy-intensive industries in the EU.
6
COM(2024) 163 final.
7
COM(2025) 79 final.
EN 4 EN
Achieving the 2040 climate target will require a number of enablers, such as ensuring the
competitiveness of the European industry, including through simplification; a greater focus on
a just transition that leaves no one behind; and a level playing field with international
partners, as shown in the 2040 climate target Communication. On the basis of active
engagement with business leaders, social partners and civil society, since the beginning of
2025 the Commission launched a number of sectorial strategic dialogues with industry. As
one of the outcomes of the Strategic Dialogue on the Future of the European Automotive
Industry, the co-legislators have reached an agreement on a targeted amendment to the
regulation on CO2 standards for new passenger cars and vans, that aims to provide car
manufacturers with flexibility to meet their emissions target for 2025 and preserve their
investment capacity on the path to zero-emission mobility. The Commission will also put
forward a proposal for clean corporate fleets at the end of 20258
. To support the
decarbonisation of transport while fostering industrial development in Europe, the
Commission will also put forward a Sustainable Transport Investment Plan later this year,
which will notably aim at de-risking investment for the production and uptake of sustainable
alternative fuels in hard-to-abate sectors, including aviation and waterborne transport. In order
to preserve the competitiveness of the EU’s steel and metals industry, the Commission has
adopted the European Steel and Metals Action Plan with measures aimed at ensuring access
to clean and affordable energy, preventing carbon leakage, protecting European industrial
capacities, and promoting circularity for metals.
The clean transition has to be accompanied by appropriate funding opportunities, that will
combine existing supporting mechanisms with new and innovative sources of funding. The
new Clean Industrial Deal State Aid Framework will reduce investment risks for
decarbonization projects and crowd in private finance. The Recovery and Resilience Facility,
with a total of EUR 648 billion, continues to be an important tool for financing the transition
with an average of 42% of the total budget dedicated to green measures across all Member
States. Since 2013, the EU’s Emissions Trading System generated more than EUR 230 billion
of revenues to be reinvested in climate and energy measures, including to address social
aspects in lower- and middle-income households. From 2026 onwards, the newly established
Social Climate Fund (SCF) will make available EUR 86.7 billion to support vulnerable
individuals and micro-enterprises in the energy and transport transitions. The upcoming
proposal on the Multiannual Financial Framework will provide further clarity on the public
financing available for the transition, as well as necessary synergies with private investments
and innovative financial tools.
A true level playing field for businesses in Europe and globally is created when other
countries adopt carbon pricing of their own, which would also contribute to an increase of
global climate ambition. The Commission’s Task Force for International Carbon Pricing and
Markets Diplomacy continues to engage with and support partner countries to set up carbon
markets and develop a global approach to carbon pricing. After the current transitional phase,
the Carbon Border Adjustment Mechanism (CBAM) will apply in its definitive regime from
2026. By confirming that a price has been paid for the embedded carbon emissions generated
in the production of certain goods imported into the EU, the CBAM will ensure the carbon
price of imports is equivalent to the carbon price of domestic production, and that the EU's
climate objectives are not undermined. Moreover, the Communication “Delivering on the
Clean Industrial Deal” of 2 July announced additional measures which will reduce the risk of
carbon leakage for European exporters of CBAM goods.
8
COM(2025) 96 final.
EN 5 EN
The objectives of the Clean Industrial Deal to strengthen EU’s resilience and competitiveness
are further reinforced by four Simplification Omnibus packages aimed at reducing the
administrative burden for companies, especially SMEs. In particular, the agreement between
the European Parliament and Council on the CBAM simplification proposal includes a new de
minimis threshold which will exempt 90% of importers from CBAM rules, while maintaining
environmental ambition, with 99% of total CO2 emissions still covered by the CBAM.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The legal basis for the proposal is Article 192(1) of the Treaty on the Functioning of the
European Union (TFEU). In accordance with Articles 191 and 192(1) TFEU, the European
Union shall contribute to the pursuit, inter alia, of the following objectives: preserving,
protecting and improving the quality of the environment, promoting measures at international
level to deal with regional or worldwide environmental problems, and in particular combating
climate change.
• Subsidiarity (for non-exclusive competence)
Climate change is a trans-boundary problem. For trans-boundary problems, individual action
by Member States is unlikely to lead to optimal outcomes. Instead, coordinated EU action can
effectively supplement and reinforce national and local action. Coordination at the European
level enhances the effectiveness of climate action.
A Union-wide climate target for 2040 will have implications across the entire EU economy. It
is needed to guide a wide range of EU policies and will require EU level policy responses,
beyond climate policy. Through coordinated action it will be possible to take into account the
different capabilities of Member States and regions to act and to use the power of the EU
single market as a driver for cost-efficient change. Moreover, coordinated climate action at
EU level is of importance for international climate action, in particular in view of determining
the EU’s Nationally Determined Contribution under the Paris Agreement to be communicated
in autumn 2025.
• Proportionality
The proposal aims to provide a direction by further defining the path to climate neutrality. It
does not prescribe specific policies, technologies or measures, leaving Member States
flexibility, taking into account the regulatory framework to achieve greenhouse gas emission
reduction targets. The impact assessment report accompanying the 2040 climate target
Communication9
found that a reduction of 90-95% (option 3) was the most proportionate to
bring the EU economy to climate neutrality by 2050 and for the EU to contribute to global
climate action in accordance with the Paris Agreement temperature goals of limiting the
temperature increase to well below 2°C above pre-industrial levels and pursuing efforts to
limit the temperature increase to 1,5°C above pre-industrial levels.
• Choice of the instrument
The aim of this initiative is to set an intermediate Union-wide climate target for 2040 with a
view to achieving the climate-neutrality objective by 2050, as required by Article 4(3) of the
European Climate Law. Therefore, the objective of the proposal is best pursued through a
Regulation, following the form of the existing legislative instrument.
9
SWD(2024) 63 final.
EN 6 EN
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER
CONSULTATIONS AND IMPACT ASSESSMENTS
• Stakeholder consultations
The initiative is informed by the broad debate following the 2040 climate target
Communication. Both in the European Parliament and in the Council, discussions have taken
place on the Communication. In preparation for the 2040 climate target Communication and
the accompanying impact assessment, the Commission carried out a public consultation,
running from 31 March 2023 to 23 June 2023. The initiative is also informed by the advice of
the European Scientific Advisory Board on Climate Change (ESABCC). In June 2023, the
Advisory Board published advice recommending a 2040 target for the EU to reduce net GHG
emissions in the range of 90-95% compared to 199010
. The Advisory Board also adopted a
report in which it assessed progress and policy consistency11
. In June 2025, the Advisory
Board adopted a report revisiting its 2023 recommendation in light of the evolving context,
reaffirming its earlier recommendation12
.
• Impact assessment
In the context of the 2040 climate target Communication, the Commission carried out a
detailed impact assessment, providing a detailed analysis of different levels of net GHG
emissions in 2040 and the associated sectoral pathways bridging 2030 to climate neutrality by
2050. The Commission also published a report on the projected indicative Union greenhouse
gas budget for the 2030-2050 period, as required under the European Climate Law.
The analysis in the impact assessment covers all sectors in which action is needed for the EU
to reach its 2050 climate-neutrality objective. It is based on the Green Deal legislation and the
REPowerEU actions to address the energy crisis.
The impact assessment looked in detail at the implications of three target options for 2040.
The main difference among the options is in the pace of the transition. The impact assessment
found that option 3 is the most effective in bringing the EU to climate neutrality by 2050, with
a greater reduction in net greenhouse gas emissions ahead of 2040. As a consequence, it will
imply less additional effort after 2040 to reach net zero emissions by 2050. Option 3 also
leads to the lowest GHG cumulative emissions (the ‘GHG budget’) for the EU, making it the
best option in terms of the EU’s contribution to limiting climate change and providing the
most credible push to the EU’s partners worldwide to accelerate climate action. The
Commission’s recommended target of 90% is the lower end of option 3 and the upper end of
option 2.
The Regulatory Scrutiny Board issued a positive opinion with reservations on 22 December
202313
, with recommendations for improvement. The impact assessment was amended
accordingly.
10
European Scientific Advisory Board on Climate Change, Scientific advice for the determination of an
EU-wide 2040 climate target and a greenhouse gas budget for 2030-2050, DOI: 10.2800/609405.
11
European Scientific Advisory Board on Climate Change, Towards EU climate neutrality: progress,
policy gaps and opportunities, Assessment Report 2024, DOI:10.2800/216446.
12
European Scientific Advisory Board on Climate Change, Scientific advice for amending the European
Climate Law – Setting climate goals to strengthen EU strategic priorities, DOI: 10.2800/1978453.
13
SEC(2024) 64 final.
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In addition, in May 2024, the Commission published a report on the operation of the
European Climate Law14
. It details the actions taken since the European Climate Law’s entry
into force to speed up the transition to climate neutrality.
• Fundamental rights
The proposal respects the fundamental rights and observes the principles recognised in
particular by the Charter of Fundamental Rights of the European Union. In particular, it
contributes to the objective of a high level of environmental protection in accordance with the
principle of sustainable development as laid down in Article 37 of the Charter of Fundamental
Rights of the European Union15
.
4. BUDGETARY IMPLICATIONS
The indirect impacts on Member States’ budgets will depend on their choice of national
policies and measures for greenhouse gas emission reductions and other mitigation action, and
will follow mostly from the possible complementary proposals to revise related instruments or
propose new ones to deliver the additional greenhouse gas emission reductions necessary.
The implementation of this proposal will not require an increase in capacity from the services
of the Commission, as set out in the attached legislative financial and digital statement.
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
Transparent and regular reporting by Member States coupled with robust assessments by the
Commission and mechanisms to ensure that progress is assessed are essential to ensure that
the EU remains on track towards achieving the EU 2050 climate-neutrality objective. The
initiative does not alter the arrangements for tracking progress towards achieving the
European Climate Law’s objectives.
• Detailed explanation of the specific provisions of the proposal
Article 1 contains all the proposed amendments to the European Climate Law, namely:
Article 1 on subject matter and scope: to include a reference to the 2040 climate target in
relation to the scope of the European Climate Law.
Article 4 on intermediate Union climate targets: to set the Union-wide target for 2040, based
on the detailed impact assessment accompanying the 2040 climate target Communication, and
taking into account the scientific advice of the ESABCC. The Commission’s EU-wide
assessment of the final updated national energy and climate plans16
(NECPs) shows that the
EU is currently on course to reduce net greenhouse gas emissions by around 54% by 2030,
compared to 1990 levels, if Member States implement fully existing and planned national
measures and EU policies. The EU is thus well on track to reach the EU 2030 target of
reducing net greenhouse gas emissions by at least 55% compared to 1990. The Commission
also took into account the conclusions of the progress assessments made in the 2023 Climate
Action Progress Report, the outcomes of the global stocktake, and considered the elements set
14
COM(2024) 196 final.
15
OJ C 326, 26.10.2012, p. 391.
16
COM(2025) 274 final.
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out in Article 4(5) and the report on the projected indicative Union greenhouse gas budget for
the 2030-2050 period. The net greenhouse gas emissions covered by the target correspond to
the Union-wide greenhouse gas emissions and removals regulated in Union law17
. The
amended provision replaces Article 4(3)-(5) which set out the process leading up to this
amendment. Consistently with the EU 2030 climate target of at least 55% reduction of net
greenhouse gases and its associated policy framework, with climate neutrality in 2050 and
with the proposed 2040 target of a 90% reduction, the resulting indicative “GHG budget” for
the EU over the 2030-2050 period is estimated at 16 GtCO2-eq, as explained in Annex 14 to
the impact assessment accompanying the 2040 climate target Communication. This GHG
budget falls within the range analysed by the ESABCC from feasible scenarios compatible
with a 1,5°C global warming.
17
As explained in the technical information accompanying the Report from the Commission to the
European Parliament and the Council EU Climate Action Progress Report 2024, SWD(2024) 249 final,
COM(2024) 498 final.
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2025/0524 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
amending Regulation (EU) 2021/1119 establishing the framework for achieving climate
neutrality
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular
Article 192(1) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee1
,
Having regard to the opinion of the Committee of the Regions2
,
Acting in accordance with the ordinary legislative procedure,
Whereas:
(1) The outcome of the first global stocktake3
under the Paris Agreement4
, concluded at
the United Nations Climate Change Conference at the end of 2023, found that parties
are putting increasingly effective climate policies in place, but that urgent additional
action is needed to put the world fully on track for achieving the goals of the Paris
Agreement.
(2) Through the adoption of Regulation (EU) 2021/1119 of the European Parliament and
of the Council5
, the Union has enshrined in legislation a binding objective of
economy-wide climate neutrality by 2050, thus reducing emissions to net zero by that
date, and the aim of achieving negative emissions thereafter, established a binding
Union 2030 intermediate climate target and provided for the setting of a Union-wide
intermediate climate target for 2040.
(3) Taking into account the scientific advice by the European Scientific Advisory Board
on Climate Change and based on a detailed Impact Assessment, the Commission
presented a recommended target of a 90% net greenhouse gas emission reduction
compared to 1990 levels for 2040 in its Communication of 6 February 2024 on
1
OJ C , , p. .
2
OJ C , , p. .
3
Decision 1/CMA.5.
4
OJ L 282, 19.10.2016, p. 4.
5
Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing
the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU)
2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1, ELI:
http://data.europa.eu/eli/reg/2021/1119/oj).
EN 10 EN
Securing our future: Europe's 2040 climate target and path to climate neutrality by
2050 building a sustainable, just and prosperous society6
.
(4) In order to propose the Union 2040 climate target, the Commission considered the best
available and most recent scientific evidence, including the latest reports of the
Intergovernmental Panel on Climate Change (IPCC) and the Advisory Board; the
social, economic and environmental impacts, including the costs of inaction; the need
to ensure a just and socially fair transition for all; cost-effectiveness and economic
efficiency; competitiveness of the Union’s economy, in particular small and medium-
sized enterprises and sectors most exposed to carbon leakage; best available cost-
effective, safe and scalable technologies; energy efficiency and the ‘energy efficiency
first’ principle, energy affordability and security of supply; fairness and solidarity
between and within Member States; the need to ensure environmental effectiveness
and progression over time; the need to maintain, manage and enhance natural sinks in
the long term and protect and restore biodiversity, including in the marine
environment; investment needs and opportunities; international developments and
efforts undertaken to achieve the long-term objectives of the Paris Agreement and the
ultimate objective of the United Nations Framework Convention on Climate Change
(UNFCCC); existing information on the projected indicative Union greenhouse gas
budget for the 2030-2050 period.
(5) In order to achieve the 2040 climate target it is essential to, inter alia, fully implement
the agreed 2030 framework, ensure and provide support to the competitiveness and
resilience of the European industry, ensure transition pathways based on best available
cost-effective, safe and scalable technologies, set a greater focus on a just transition
that leaves no one behind, ensure fair competition with international partners,
decarbonise the energy system with all zero and low carbon energy solutions
(including renewables, nuclear, energy efficiency, storage, CCS, CCU, carbon
removals, geothermal and hydro-energy, and all other current and future net-zero
energy technologies), and organise a strategic dialogue on the post-2030 framework
with all relevant sectors. With the Clean Industrial Deal, the EU is putting in place the
conditions for a successful transition, focussing on both decarbonisation and industrial
renewal, including support mechanisms for European industry, better access to public
and private finance, a global level playing field, and clear enabling conditions for the
uptake and scaling of clean technologies, in order to strengthen industrial
competitiveness and innovation in the EU.
(6) In light of the 2050 climate-neutrality objective, by 2040 greenhouse gas emissions
should be reduced and removals enhanced, to ensure that the net greenhouse gas
emissions, that is emissions after deduction of removals, are reduced economy-wide
by 90 % by 2040 compared to 1990 levels.
(7) Priority should be given to domestic reductions in greenhouse gas emissions,
complementing it by increased removals, including through both natural and
technological solutions. In the development of the post-2030 policy package, due
attention should be paid to the contribution of gross emission reductions versus natural
and technological removals. Nature-based and industrial removals play an increasing
role in the Union’s economy in the next decades, in view of the need to balance
greenhouse gas emissions and removals at the latest by 2050 and negative emissions
thereafter. Incentives will be developed on the occasion of the review of Directive
6
COM(2024) 63 final.
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2003/87/EC of the European Parliament and of the Council7
in 2026, where the
Commission envisages to provide for domestic permanent carbon removals in the
system for greenhouse gas emission allowance trading within the Union (‘EU ETS’) to
compensate for residual emissions from hard to abate sectors.
(8) The Union has in place a regulatory framework to achieve the 2030 climate target. The
legislation implementing that target consists, inter alia, of Directive 2003/87/EC,
which establishes the EU ETS, Regulation (EU) 2018/842 of the European Parliament
and of the Council8
, which introduced national targets for reduction of greenhouse gas
emissions by 2030, and Regulation (EU) 2018/841 of the European Parliament and of
the Council9
, which sets net carbon removal targets for the land use sector. The
Commission should assess how the relevant Union legislation would need to be
amended in order to achieve the 2040 climate target. When designing the future
architecture, the Commission should prepare detailed impact assessments, including
the impacts on competitiveness and small and medium enterprises, and consider taking
necessary measures, including legislative proposals as appropriate. A number of
elements to facilitate the achievement of the 2040 target should be appropriately
reflected, including a potential limited contribution towards the 2040 target of high-
quality international credits under Article 6 of the Paris Agreement, in the second part
of the 2030-2040 decade, in line with accounting rules of the Paris Agreement; the
role of domestic permanent removals (Biogenic emissions Capture with Carbon
Storage (BioCCS) and Direct Air Capture with Carbon Storage (DACCS)) in the EU
ETS; enhanced flexibility across sectors. In order to assess the social, economic and
environmental impacts, the future architecture should be based on robust impact
assessments. The future architecture should also foster convergence while taking into
account fairness and Member States’ specificities, including those of islands and
outermost regions.
(9) Since the objective of this Regulation, namely to set a Union-wide climate target for
2040, cannot be sufficiently achieved by the Member States but can rather, by reason
of its scale and effects, be better achieved at Union level, the Union may adopt
measures, in accordance with the principle of subsidiarity as set out in Article 5 of the
Treaty on European Union. In accordance with the principle of proportionality, as set
out in that Article, this Regulation does not go beyond what is necessary in order to
achieve that objective.
(10) Regulation (EU) 2021/1119 should therefore be amended accordingly,
7
Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a
system for greenhouse gas emission allowance trading within the Union and amending Council
Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32, ELI: http://data.europa.eu/eli/dir/2003/87/oj).
8
Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding
annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to
climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No
525/2013 (OJ L 156, 19.6.2018, p. 26, ELI: http://data.europa.eu/eli/reg/2018/842/oj).
9
Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the
inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the
2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No
529/2013/EU (OJ L 156, 19.6.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/841/oj).
EN 12 EN
HAVE ADOPTED THIS REGULATION:
Article 1
Amendments to Regulation (EU) 2021/1119
Regulation (EU) 2021/1119 is amended as follows:
(1) in Article 1, second paragraph, the following sentence is added:
‘This Regulation also sets out a binding Union target for 2040.’;
(2) in Article 4, paragraphs 3, 4 and 5 are replaced by the following:
‘3. In order to reach the climate-neutrality objective set out in Article 2(1), the binding
Union 2040 climate target shall be a reduction of net greenhouse gas emissions
(emissions after deduction of removals) by 90 % compared to 1990 levels by 2040.
4. With a view to the period after 2030, the Commission shall review relevant Union
legislation in order to enable the achievement of the target set out in paragraph 3 of
this Article and the climate-neutrality objective set out in Article 2(1) and consider
taking the necessary measures as appropriate and based on detailed impact assessment,
in accordance with the Treaties.
While some enabling policies have already been implemented and their impact is
already visible, this is not yet the case for all. The Commission shall aim to accelerate
and strengthen the enabling framework to ensure that conditions are in place to
support European industry and citizens throughout the transition, in full respect of EU
law.
Within the framework of the review referred to in the first subparagraph, in order to
facilitate the achievement of the target set out in paragraph 3 of this Article, the
Commission shall ensure that the following elements are appropriately reflected in the
legislative proposals:
(a) Starting from 2036, a possible limited contribution towards the 2040 target of
high-quality international credits under Article 6 of the Paris Agreement of 3%
of 1990 EU net emissions supporting the EU and third countries in achieving
net greenhouse gas reduction trajectories compatible with the Paris Agreement
objective to hold the increase in the global average temperature to well below 2
°C and pursue efforts to limit the temperature increase to 1,5 °C above pre-
industrial levels - the origin, quality criteria and other conditions concerning
the acquisition and use of any such credits shall be regulated in Union law;
(b) the role of domestic permanent removals under the greenhouse gas emission
allowance trading system within the Union (‘EU ETS’) to compensate for
residual emissions from hard to abate sectors;
(c) enhanced flexibility across sectors, to support the achievement of targets in a
cost-effective way;
(d) Member States post-2030 targets and efforts should reflect cost-efficiency and
solidarity, in light of national circumstances;
EN 13 EN
(e) the best available and most recent scientific evidence, including the latest
reports of the IPCC and the Advisory Board;
(f) the social, economic and environmental impacts;
(g) the costs of inaction and the benefits of action over mid-term to long-term;
(h) the need to ensure a just and socially fair transition for all;
(i) simplification, technology neutrality, cost-effectiveness, economic efficiency,
and economic security;
(j) climate action as a driver for investment and innovation;
(k) the need to strengthen the global competitiveness of the Union’s economy, in
particular small and medium-sized enterprises and industrial sectors most
exposed to carbon leakage so as to ensure fair competition;
(l) best available cost-effective, safe and scalable technologies;
(m) energy affordability, security of supply, energy efficiency and the ‘energy
efficiency first’ principle;
(n) fairness and solidarity between and within Member States;
(o) the need to ensure environmental effectiveness and progression over time;
(p) the need to maintain, manage and enhance natural sinks in the long term and
protect and restore biodiversity, as well as take into account uncertainties
notably those linked to the impacts of climate change in the land use sector;
(q) investment needs and opportunities, including access to public and private
finance;
(r) international developments and efforts undertaken to achieve the long-term
objectives of the Paris Agreement and the ultimate objective of the UNFCCC,
as well as the support of the Union to its partners in addressing climate change
and its impacts.’.
Article 2
Entry into force
This Regulation shall enter into force on the twentieth day following that of its publication in
the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament For the Council
The President The President
EN 1 EN
LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT
1. FRAMEWORK OF THE PROPOSAL/INITIATIVE................................................. 3
1.1. Title of the proposal/initiative...................................................................................... 3
1.2. Policy area(s) concerned .............................................................................................. 3
1.3. Objective(s).................................................................................................................. 3
1.3.1. General objective(s) ..................................................................................................... 3
1.3.2. Specific objective(s)..................................................................................................... 3
1.3.3. Expected result(s) and impact...................................................................................... 3
1.3.4. Indicators of performance ............................................................................................ 3
1.4. The proposal/initiative relates to:................................................................................. 4
1.5. Grounds for the proposal/initiative .............................................................................. 4
1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for
roll-out of the implementation of the initiative............................................................ 4
1.5.2. Added value of EU involvement (it may result from different factors, e.g.
coordination gains, legal certainty, greater effectiveness or complementarities). For
the purposes of this section 'added value of EU involvement' is the value resulting
from EU action, that is additional to the value that would have been otherwise
created by Member States alone. ................................................................................. 4
1.5.3. Lessons learned from similar experiences in the past.................................................. 4
1.5.4. Compatibility with the multiannual financial framework and possible synergies with
other appropriate instruments....................................................................................... 5
1.5.5. Assessment of the different available financing options, including scope for
redeployment................................................................................................................ 5
1.6. Duration of the proposal/initiative and of its financial impact .................................... 6
1.7. Method(s) of budget implementation planned............................................................. 6
2. MANAGEMENT MEASURES................................................................................... 8
2.1. Monitoring and reporting rules .................................................................................... 8
2.2. Management and control system(s) ............................................................................. 8
2.2.1. Justification of the budget implementation method(s), the funding implementation
mechanism(s), the payment modalities and the control strategy proposed.................. 8
2.2.2. Information concerning the risks identified and the internal control system(s) set up
to mitigate them............................................................................................................ 8
2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio between
the control costs and the value of the related funds managed), and assessment of the
expected levels of risk of error (at payment & at closure)........................................... 8
2.3. Measures to prevent fraud and irregularities................................................................ 9
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE............ 10
3.1. Heading(s) of the multiannual financial framework and expenditure budget line(s)
affected....................................................................................................................... 10
EN 2 EN
3.2. Estimated financial impact of the proposal on appropriations................................... 12
3.2.1. Summary of estimated impact on operational appropriations.................................... 12
3.2.1.1. Appropriations from voted budget............................................................................. 12
3.2.1.2. Appropriations from external assigned revenues....................................................... 17
3.2.2. Estimated output funded from operational appropriations......................................... 22
3.2.3. Summary of estimated impact on administrative appropriations............................... 24
3.2.3.1. Appropriations from voted budget .............................................................................. 24
3.2.3.2. Appropriations from external assigned revenues....................................................... 24
3.2.3.3. Total appropriations ................................................................................................... 24
3.2.4. Estimated requirements of human resources.............................................................. 25
3.2.4.1. Financed from voted budget....................................................................................... 25
3.2.4.2. Financed from external assigned revenues ................................................................ 26
3.2.4.3. Total requirements of human resources ..................................................................... 26
3.2.5. Overview of estimated impact on digital technology-related investments................ 28
3.2.6. Compatibility with the current multiannual financial framework.............................. 28
3.2.7. Third-party contributions ........................................................................................... 28
3.3. Estimated impact on revenue ..................................................................................... 29
4. DIGITAL DIMENSIONS.......................................................................................... 29
4.1. Requirements of digital relevance.............................................................................. 30
4.2. Data ............................................................................................................................ 30
4.3. Digital solutions ......................................................................................................... 31
4.4. Interoperability assessment........................................................................................ 31
4.5. Measures to support digital implementation.............................................................. 32
EN 3 EN
1. FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1. Title of the proposal/initiative
Proposal for a Regulation of the European Parliament and of the Council amending
Regulation (EU) 2021/1119 establishing the framework for achieving climate
neutrality
1.2. Policy area(s) concerned
Climate Action
Heading 3 Natural resources and Environment
Title 9 – Environment and Climate Action
1.3. Objective(s)
1.3.1. General objective(s)
The proposal delivers on the Commission’s obligation, set in Article 4(3) of the
European Climate Law, to make a legislative proposal to amend the European
Climate Law to include the Union 2040 climate target.
1.3.2. Specific objective(s)
Set the Union 2040 climate target
1.3.3. Expected result(s) and impact
Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.
The proposal sets a Union 2040 climate target, on the way to climate-neutrality by
2050. It will inform the preparation of the post-2030 framework. It does not propose
new policy measures or set new sector-specific targets. The post-2030 framework
will determine which stakeholders are affected.
1.3.4. Indicators of performance
Specify the indicators for monitoring progress and achievements.
Level of reduction of greenhouse gas emissions in the EU (as reported under
Regulation (EU) 2018/1999)
1.4. The proposal/initiative relates to:
 a new action
 a new action following a pilot project / preparatory action27
✓ the extension of an existing action
 a merger or redirection of one or more actions towards another/a new action
27
As referred to in Article 58(2), point (a) or (b) of the Financial Regulation.
EN 4 EN
1.5. Grounds for the proposal/initiative
1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for
roll-out of the implementation of the initiative
Following the setting of the climate target for 2040, and in line with reviews foreseen
in legislation, a climate policy architecture beyond 2030 will be prepared.
1.5.2. Added value of EU involvement (it may result from different factors, e.g.
coordination gains, legal certainty, greater effectiveness or complementarities). For
the purposes of this section 'added value of EU involvement' is the value resulting
from EU action, that is additional to the value that would have been otherwise
created by Member States alone.
Climate Change is a trans-boundary challenge and cannot be solved by national or
local action alone. Coordinated EU action can effectively supplement and reinforce
national and local action and enhances climate action.
1.5.3. Lessons learned from similar experiences in the past
The EU has put in place a comprehensive framework of policies to reduce
greenhouse gas emissions. It has already started to modernise and transform the
economy with the aim of climate neutrality. In 2023 total net greenhouse gas
emissions were 37% below their 1990 level, with GDP growing by 68% over the
same period, as shown in the EU Climate Action Progress Report 2024 (COM(2024)
498).
1.5.4. Compatibility with the multiannual financial framework and possible synergies with
other appropriate instruments
The proposal aims to complement the existing policy framework by setting a 2040
climate target.
It is compatible with the multiannual financial framework 2021-2027.
1.5.5. Assessment of the different available financing options, including scope for
redeployment
-
EN 5 EN
1.6. Duration of the proposal/initiative and of its financial impact
 limited duration
–  in effect from [DD/MM]YYYY to [DD/MM]YYYY
–  financial impact from YYYY to YYYY for commitment appropriations and
from YYYY to YYYY for payment appropriations.
✓ unlimited duration
– Implementation with a start-up period from 2025 to 2026,
– followed by full-scale operation.
1.7. Method(s) of budget implementation planned28
✓ Direct management by the Commission
– ✓ by its departments, including by its staff in the Union delegations;
–  by the executive agencies
 Shared management with the Member States
 Indirect management by entrusting budget implementation tasks to:
–  third countries or the bodies they have designated
–  international organisations and their agencies (to be specified)
–  the European Investment Bank and the European Investment Fund
–  bodies referred to in Articles 70 and 71 of the Financial Regulation
–  public law bodies
–  bodies governed by private law with a public service mission to the extent that
they are provided with adequate financial guarantees
–  bodies governed by the private law of a Member State that are entrusted with
the implementation of a public-private partnership and that are provided with
adequate financial guarantees
–  bodies or persons entrusted with the implementation of specific actions in the
common foreign and security policy pursuant to Title V of the Treaty on
European Union, and identified in the relevant basic act
– bodies established in a Member State, governed by the private law of a
Member State or Union law and eligible to be entrusted, in accordance with
sector-specific rules, with the implementation of Union funds or budgetary
guarantees, to the extent that such bodies are controlled by public law bodies or
by bodies governed by private law with a public service mission, and are provided
with adequate financial guarantees in the form of joint and several liability by the
controlling bodies or equivalent financial guarantees and which may be, for each
action, limited to the maximum amount of the Union support.
Comments
28
Details of budget implementation methods and references to the Financial Regulation may be found on
the BUDGpedia site: https://myintracomm.ec.europa.eu/corp/budget/financial-rules/budget-
implementation/Pages/implementation-methods.aspx.
EN 6 EN
The current team will continue managing the initiative. No additional staff required.
EN 7 EN
2. MANAGEMENT MEASURES
2.1. Monitoring and reporting rules
The proposal continues the European Climate Law with the same assessments to be
carried by the Commission as is already the case. The European Climate Law builds
on the robust transparency framework for greenhouse gas emissions and other
climate information of the Regulation on the Governance of the Energy Union and
Climate Action, rather than establishing additional reporting streams by Member
States.
2.2. Management and control system(s)
2.2.1. Justification of the budget implementation method(s), the funding implementation
mechanism(s), the payment modalities and the control strategy proposed
Not applicable. The proposal is not implementing a financial programme but
designing a long-term policy. Management mode, funding implementation
mechanisms, payment modalities and control strategy in relation to error rates are not
applicable.
2.2.2. Information concerning the risks identified and the internal control system(s) set up
to mitigate them
Under the Climate Law, the Commission carries out regular assessment of progress
with possible recommendations and additional measures.
Member States may become delayed in their planning and reporting obligations
under the Regulation on the Governance of the Energy Union and Climate Action.
Thanks to the already existing and well-established reporting systems on climate
information (under the Monitoring Mechanism Regulation and integrated in the
Governance Regulation), there are procedures in place for ensuring that reports on
greenhouse gas emissions arrive on time, are quality controlled, that gaps can be
addressed, and that Member States not fulfilling their reporting obligations can be
assisted.
2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio between
the control costs and the value of the related funds managed), and assessment of the
expected levels of risk of error (at payment & at closure)
This initiative does not bring about new significant controls/risks that would not be
covered be an existing internal control framework. No specific measures beyond the
application of the Financial Regulation have been envisaged.
2.3. Measures to prevent fraud and irregularities
No specific measures beyond the application of the Financial Regulation have been
envisaged.
EN 8 EN
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1. Heading(s) of the multiannual financial framework and expenditure budget
line(s) affected
• Existing budget lines
In order of multiannual financial framework headings and budget lines.
Heading of
multiannual
financial
framework
Budget line
Type of
expenditure
Contribution
Number Diff./Non-
diff.29
from
EFTA
countries
30
from
candidate
countries
and
potential
candidates
31
From
other
third
countries
other assigned
revenue
3
09 02 03 00
Diff. YES YES NO YES
• New budget lines requested
In order of multiannual financial framework headings and budget lines.
Heading of
multiannual
financial
framework
Budget line
Type of
expenditure
Contribution
Number Diff./Non-
diff.
from
EFTA
countries
from
candidate
countries
and
potential
candidates
from
other
third
countries
other assigned
revenue
[XX.YY.YY.YY] Diff./Non
-diff.
YES/NO YES/NO YES/NO YES/NO
[XX.YY.YY.YY] Diff./Non
-diff.
YES/NO YES/NO YES/NO YES/NO
[XX.YY.YY.YY] Diff./Non
-diff.
YES/NO YES/NO YES/NO YES/NO
29
Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.
30
EFTA: European Free Trade Association.
31
Candidate countries and, where applicable, potential candidates from the Western Balkans.
EN 9 EN
3.2. Estimated financial impact of the proposal on appropriations
3.2.1. Summary of estimated impact on operational appropriations
– ❖ The proposal/initiative does not require the use of operational appropriations
–  The proposal/initiative requires the use of operational appropriations, as explained below
3.2.1.1. Appropriations from voted budget
EUR million (to three decimal places)
Heading of multiannual financial framework Number
DG: <…….>
Year Year Year Year
TOTAL MFF
2021-2027
2024 2025 2026 2027
Operational appropriations
Budget line
Commitments (1a) 0.000
Payments (2a) 0.000
Budget line
Commitments (1b) 0.000
Payments (2b) 0.000
Appropriations of an administrative nature financed from the envelope of specific programmes32
Budget line (3) 0.000
TOTAL appropriations
for DG <…….>
Commitments =1a+1b+3 0.000 0.000 0.000 0.000 0.000
Payments =2a+2b+3 0.000 0.000 0.000 0.000 0.000
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
TOTAL operational appropriations Commitments (4) 0.000 0.000 0.000 0.000 0.000
32
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.
EN 10 EN
Payments (5) 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations of an administrative nature financed
from the envelope for specific programmes
(6) 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations under
HEADING <….>
Commitments =4+6 0.000 0.000 0.000 0.000 0.000
of the multiannual financial framework Payments =5+6 0.000 0.000 0.000 0.000 0.000
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
• TOTAL operational appropriations (all
operational headings)
Commitments (4) 0.000 0.000 0.000 0.000 0.000
Payments (5) 0.000 0.000 0.000 0.000 0.000
• TOTAL appropriations of an administrative nature financed
from the envelope for specific programmes (all operational
headings)
(6) 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations Under
Heading 1 to 6
Commitments =4+6 0.000 0.000 0.000 0.000 0.000
of the multiannual financial framework
(Reference amount)
Payments =5+6 0.000 0.000 0.000 0.000 0.000
Heading of multiannual financial framework 7 ‘Administrative expenditure’33
DG: <…….>
Year Year Year Year TOTAL
MFF 2021-
2027
2024 2025 2026 2027
 Human resources 0.000 0.000 0.000 0.000 0.000
 Other administrative expenditure 0.000 0.000 0.000 0.000 0.000
33
The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage.
EN 11 EN
TOTAL DG <…….> Appropriations 0.000 0.000 0.000 0.000 0.000
DG: <…….>
Year Year Year Year TOTAL
MFF 2021-
2027
2024 2025 2026 2027
 Human resources 0.000 0.000 0.000 0.000 0.000
 Other administrative expenditure 0.000 0.000 0.000 0.000 0.000
TOTAL DG <…….> Appropriations 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations under HEADING 7 of the multiannual financial
framework
(Total
commitments
= Total
payments)
0.000 0.000 0.000 0.000 0.000
EUR million (to three decimal places)
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
TOTAL appropriations under HEADINGS 1 to 7 Commitments 0.000 0.000 0.000 0.000 0.000
of the multiannual financial framework Payments 0.000 0.000 0.000 0.000 0.000
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
TOTAL operational appropriations
Commitments (4) 0.000 0.000 0.000 0.000 0.000
Payments (5) 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations of an administrative nature financed
from the envelope for specific programmes
(6) 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations under
HEADING <….>
Commitments =4+6 0.000 0.000 0.000 0.000 0.000
EN 12 EN
of the multiannual financial framework Payments =5+6 0.000 0.000 0.000 0.000 0.000
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
TOTAL operational appropriations
Commitments (4) 0.000 0.000 0.000 0.000 0.000
Payments (5) 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations of an administrative nature financed
from the envelope for specific programmes
(6) 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations under
HEADING <….>
Commitments =4+6 0.000 0.000 0.000 0.000 0.000
of the multiannual financial framework Payments =5+6 0.000 0.000 0.000 0.000 0.000
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
• TOTAL operational appropriations (all
operational headings)
Commitments (4) 0.000 0.000 0.000 0.000 0.000
Payments (5) 0.000 0.000 0.000 0.000 0.000
• TOTAL appropriations of an administrative nature financed
from the envelope for specific programmes (all operational
headings)
(6) 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations under Headings 1
to 6
Commitments =4+6 0.000 0.000 0.000 0.000 0.000
of the multiannual financial framework (Reference
amount)
Payments =5+6 0.000 0.000 0.000 0.000 0.000
EN 13 EN
Heading of multiannual financial framework 7 ‘Administrative expenditure’34
EUR million (to three decimal places)
DG: <…….>
Year Year Year Year TOTAL
MFF 2021-
2027
2024 2025 2026 2027
 Human resources 0.000 0.000 0.000 0.000 0.000
 Other administrative expenditure 0.000 0.000 0.000 0.000 0.000
TOTAL DG <…….> Appropriations 0.000 0.000 0.000 0.000 0.000
DG: <…….>
Year Year Year Year TOTAL
MFF 2021-
2027
2024 2025 2026 2027
 Human resources 0.000 0.000 0.000 0.000 0.000
 Other administrative expenditure 0.000 0.000 0.000 0.000 0.000
TOTAL DG <…….> Appropriations 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations under HEADING 7 of the multiannual
financial framework
(Total
commitments
= Total
payments)
0.000 0.000 0.000 0.000 0.000
EUR million (to three decimal places)
Year Year Year Year TOTAL MFF
2021-2027
2024 2025 2026 2027
TOTAL appropriations under HEADINGS 1 to 7 Commitments 0.000 0.000 0.000 0.000 0.000
of the multiannual financial framework Payments 0.000 0.000 0.000 0.000 0.000
34
The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage.
EN 14 EN
EN 15 EN
3.2.3. Summary of estimated impact on administrative appropriations
–  The proposal/initiative does not require the use of appropriations of an
administrative nature
–  The proposal/initiative requires the use of appropriations of an administrative
nature, as explained below
3.2.3.1. Appropriations from voted budget
VOTED APPROPRIATIONS
Year Year Year Year TOTAL
2021 - 2027
2024 2025 2026 2027
HEADING 7
Human resources 0.000 0.000 0.000 0.000 0.000
Other administrative expenditure 0.000 0.000 0.000 0.000 0.000
Subtotal HEADING 7 0.000 0.000 0.000 0.000 0.000
Outside HEADING 7
Human resources 0.000 0.000 0.000 0.000 0.000
Other expenditure of an administrative nature 0.000 0.000 0.000 0.000 0.000
Subtotal outside HEADING 7 0.000 0.000 0.000 0.000 0.000
TOTAL 0.000 0.000 0.000 0.000 0.000
3.2.4. Estimated requirements of human resources
–  The proposal/initiative does not require the use of human resources
–  The proposal/initiative requires the use of human resources, as explained
below
3.2.4.1. Financed from voted budget
Estimate to be expressed in full-time equivalent units (FTEs)35
VOTED APPROPRIATIONS
Year Year Year Year
2024 2025 2026 2027
 Establishment plan posts (officials and temporary staff)
20 01 02 01 (Headquarters and Commission’s Representation Offices) 0 0 0 0
20 01 02 03 (EU Delegations) 0 0 0 0
01 01 01 01 (Indirect research) 0 0 0 0
01 01 01 11 (Direct research) 0 0 0 0
Other budget lines (specify) 0 0 0 0
• External staff (inFTEs)
20 02 01 (AC, END from the ‘global envelope’) 0 0 0 0
20 02 03 (AC, AL, END and JPD in the EU Delegations) 0 0 0 0
Admin. Support
line
[XX.01.YY.YY]
- at Headquarters 0 0 0 0
- in EU Delegations 0 0 0 0
01 01 01 02 (AC, END - Indirect research) 0 0 0 0
35
Please specify below the table how many FTEs within the number indicated are already assigned to the
management of the action and/or can be redeployed within your DG and what are your net needs.
EN 16 EN
01 01 01 12 (AC, END - Direct research) 0 0 0 0
Other budget lines (specify) - Heading 7 0 0 0 0
Other budget lines (specify) - Outside Heading 7 0 0 0 0
TOTAL 0 0 0 0
No additional resources required. The current team will continue managing the initiative. No additional
staff required.
3.2.5. Overview of estimated impact on digital technology-related investments
TOTAL Digital and IT appropriations
Year Year Year Year TOTAL
MFF
2021 -
2027
2024 2025 2026 2027
HEADING 7
IT expenditure (corporate) 0.000 0.000 0.000 0.000 0.000
Subtotal HEADING 7 0.000 0.000 0.000 0.000 0.000
Outside HEADING 7
Policy IT expenditure on operational
programmes
0.000 0.000 0.000 0.000 0.000
Subtotal outside HEADING 7 0.000 0.000 0.000 0.000 0.000
TOTAL 0.000 0.000 0.000 0.000 0.000
3.2.6. Compatibility with the current multiannual financial framework
The proposal/initiative:
–  can be fully financed through redeployment within the relevant heading of the
multiannual financial framework (MFF)
No additional resources required. The current team will continue managing the
initiative.
–  requires use of the unallocated margin under the relevant heading of the MFF
and/or use of the special instruments as defined in the MFF Regulation
–  requires a revision of the MFF
3.2.7. Third-party contributions
The proposal/initiative:
–  does not provide for co-financing by third parties
–  provides for the co-financing by third parties estimated below:
Appropriations in EUR million (to three decimal places)
Year
2024
Year
2025
Year
2026
Year
2027
Total
Specify the co-financing body
TOTAL appropriations co-
financed
EN 17 EN
3.3. Estimated impact on revenue
–  The proposal/initiative has no financial impact on revenue.
–  The proposal/initiative has the following financial impact:
–  on own resources
–  on other revenue
–  please indicate, if the revenue is assigned to expenditure lines
EUR million (to three decimal places)
Budget revenue line:
Appropriations
available for the
current financial
year
Impact of the proposal/initiative36
Year 2024 Year 2025 Year 2026 Year 2027
Article ………….
For assigned revenue, specify the budget expenditure line(s) affected.
Other remarks (e.g. method/formula used for calculating the impact on revenue or
any other information).
4. DIGITAL DIMENSIONS
4.1. Requirements of digital relevance
No requirements of digital relevance. The proposal is setting the 2040 climate target in
legislation, providing predictability and a clear indication of the transition pathway needed.
It does not prescribe specific policies or measures, nor does it include reporting
requirements or any other requirements. Digital means cannot be utilised to set the 2040
climate target. The possible complementary proposals to revise related instruments or
possible new ones to deliver the additional greenhouse gas emission reductions necessary
may have requirements of digital relevance, which will then be assessed in the context of
these proposals if relevant.
4.2. Data
No requirements of digital relevance identified.
4.3. Digital solutions
36
As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net
amounts, i.e. gross amounts after deduction of 20% for collection costs.
No requirements of digital relevance identified.
EN 18 EN
4.4. Interoperability assessment
4.5. Measures to support digital implementation
No requirements of digital relevance identified.
No requirements of digital relevance identified.