CEFIC Unveils Blueprint to Hit 2040 Climate Goals

The European Commission’s 2040 Climate Target proposal sets the stage for the next phase of Europe’s climate ambition. CEFIC reiterates its support for climate neutrality by 2050. At the same time, the path to 2040 must be made realistic, economically viable, and technologically feasible.

The chemical industry is currently facing one of its most severe economic downturns. Plant closures in 2023 and 2024 were ten times the historical average. Without immediate and targeted support, the EU risks long-lasting damage to its industrial base.

Discussions on the proposed 2040 climate target must be coupled with tangible actions by EU Institutions and Member States: clearly defined, traceable enabling measures, and an adjustment mechanism in case these conditions are not met.

Specifically, CEFIC lays out four key enabling conditions that must be preliminary met to:

Create market demand for low-carbon and circular products:

• Present a comprehensive strategy by end-2025.
• Table legislative and non-legislative proposals in 2026.
• Establish a functioning market by 2030.

Ensure access to cost-competitive energy and feedstock:

• Define a strategy supporting innovation across all technologies (technology-neutral) by end-2025. This should be accompanied by enabling policy to deliver internationally cost-competitive renewable and low-carbon energy.
• Present an EU vision for circular carbon feedstock.

Deliver critical energy and carbon infrastructure:

• Identify key electricity, hydrogen, CO₂ and storage infrastructure by end-2025.
• Set timelines and milestones with Member States.

Protect industry from global carbon leakage:

• Develop a realistic EU ETS framework post-2030.
• Allow ETS installations to use international carbon credits for compliance.