On July 2, the European Commission unveiled a new and ambitious EU climate target for 2040: a 90% reduction in net greenhouse gas (GHG) emissions compared to 1990 levels. This proposal builds on the existing legally binding goal to reduce emissions by 55% by 2030 and outlines a vision for a net-zero, decarbonized European economy by 2050.
The chemical industry, a significant player in Europe’s industrial landscape, responded with guarded optimism. Germany’s chemical industry association (VCI) welcomed the move toward a more flexible climate policy and economically viable transition strategies, especially the proposed integration of international carbon credits from 2036 and permanent removals within the EU Emissions Trading System (EU ETS).
“This is a much-needed step forward,” said VCI Managing Director Wolfgang Große Entrup. “But the EU ETS reform must fully embrace emissions trading as a central tool. Excluding it limits our options and slows down industrial decarbonization.”
Große Entrup emphasized that Germany’s chemical industry has already reduced its GHG emissions by over 60% since 1990 — a result of sustained investment and technological innovation. He stressed that the upcoming transformation demands even greater capital input, which only a strong and globally competitive industry can deliver.
The VCI urged policymakers to include global carbon reductions in future frameworks to accelerate climate protection in Europe and beyond. According to Große Entrup, enabling companies to use international credits would create a win-win scenario — maximizing climate gains while preserving industrial competitiveness.
The Commission’s target reflects a shift toward more realistic and balanced sustainability strategies — a welcome development for industries facing rising energy costs and global market pressure. However, VCI warned that unless practical instruments like carbon trading are fully embraced, Europe risks deindustrialization — a move that could harm, rather than help, the global climate change agenda.
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