EU Confirms 40% Cut in Greenhouse Gas Emissions Since 1990, but 2030 Target Remains Steep Climb

The European Environment Agency confirmed in its latest report that the EU has reduced its net domestic greenhouse gas emissions by 40% compared to 1990 levels. The data, published as part of the EU’s annual climate inventory submitted under the UNFCCC, marks a key milestone for the bloc’s climate trajectory — and underlines the steep climb still required to meet the legally binding 55% reduction target by 2030 set out in the European Climate Law.

What drove the cut

The 40% reduction has four primary drivers. First, the shift in the energy mix: renewables now generate about 49% of EU electricity, up from less than 5% in 1990. Second, fuel switching: coal has fallen from 39% to 12% of the power mix; gas, lower in emissions intensity, has played a transitional role despite the post-2022 squeeze on Russian supply. Third, energy efficiency improvements: industrial energy intensity has dropped roughly 35% since 2000. Fourth, and most controversially, structural economic change — including the relocation of energy-intensive manufacturing outside the EU, raising concerns about carbon leakage that the Carbon Border Adjustment Mechanism is meant to address.

Sectoral breakdown

Power generation accounts for the largest absolute reductions, having more than halved its emissions since 1990. Industry emissions are down roughly 30%; buildings down 25%; agriculture down 22%. Transport remains the worst-performing sector — emissions are still above 1990 levels, although they peaked in 2007 and have since trended slightly downward thanks to vehicle efficiency standards and the rapid uptake of electric vehicles, which now represent over 30% of new EU car sales.

The 2030 challenge

To reach 55% net reduction by 2030 — only four years away — the EU needs to cut emissions by an additional 15 percentage points in the next four years. That implies an average annual reduction roughly twice as fast as the 1990-2024 trajectory. The ‘Fit for 55’ legislative package, the Renewable Energy Directive III, the Energy Efficiency Directive recast, and the ETS reform are designed to deliver this acceleration. The European Court of Auditors warned in early 2026 that current member-state National Energy and Climate Plans cumulatively still fall short by approximately 8 percentage points.

The 2040 target debate

Looking beyond 2030, the Commission has proposed a 90% reduction target for 2040, anchoring the trajectory toward climate neutrality by 2050. The proposal, presented in February 2026, is now in the legislative process and faces resistance from several member states concerned about competitiveness costs. France has called for the inclusion of nuclear in the recognised low-carbon mix; Poland argues for a more gradual phase-out of coal in regions with limited economic alternatives. The European Parliament will deliver its position by autumn 2026.