Government decided Finland’s position on European Commission’s proposal for climate target by 2040

Ministry of the Environment
Publication date 4.9.2025 17.52 | Published in English on 5.9.2025 at 8.57
Type:Press release

The European Commission gave its proposal concerning amendments to the European Climate Law in July 2025. On 4 September 2025, the Finnish Government submitted a Union communication to Parliament where it states its opinion on the Commission’s proposal.

The Commission proposes a Union-wide net emission reduction target of 90% for 2040, compared to the 1990 level. In addition, the Commission proposes a list of 18 elements to be included in the regulation that would guide the preparation of the implementation of the 2040 climate target. 

On 4 September 2025, the Finnish Government submitted a Union communication to Parliament where it states its opinion on the Commission’s proposal.

The proposal of the European Commission concerning amendments to the EU Climate Law is in line with Finland’s priorities in the efforts to influence the process. The Government supports the proposal to reduce net emissions in the EU by 90% from the level in 1990 by 2040, provided that uncertainties in the land use sector, technology-neutrality, cost-effectiveness and technical sinks are adequately taken into account as principles that guide the future work. 

The Government considers that the proposed 90% net emission reduction target would strengthen the consistency of the EU’s climate policy actions and ensure progress towards climate neutrality by 2050. 

Finland has contributed to the work on the proposal for a long time by supporting the 90% net emission reduction target. In the efforts to influence the process, Finland has stressed the need for cost-effective emission reduction measures, incentives for technical sinks, technology-neutrality, and consideration of the current situation and uncertainties in the land use sector in the implementation of the target. The Government requires that these considerations will be adequately taken into account as principles that guide the future work on the amendments. In addition, the Government considers that adequate impact assessments will be needed to ensure competitiveness and the purchasing power of the citizens, and that all Member States must do their part as we proceed towards achieving the 2050 climate neutrality target at the EU level. 

“Finland promotes consistency and a long-term approach in the EU’s climate policy. The Commission’s proposal makes investments in clean solutions more secure and, through this, promotes Europe’s self-sufficiency and competitiveness as we strive to phase out fossil fuels. The Commission’s proposal also includes many key elements that Finland has stressed during the process,” Minister of Climate and the Environment Sari Multala says.

A common position of the EU Member States to the Commission’s proposal will be sought at the extraordinary Environment Council on 18 September.

European Commission proposes international emissions credits and flexibilities for the implementation of the climate target

The Commission proposes that as from 2036 high-quality carbon credits under Article 6 of the Paris Agreement, i.e. mitigating actions implemented in third countries, corresponding to no more than 3% of the EU's 1990 net emissions could be used to achieve the 2040 climate target.

The Government approves the Commission’s proposal concerning the use of high-quality carbon credits under Article 6 of the Paris Agreement. However, the Government considers that the credits should not be used to fulfil the obligations under the EU’s emissions trading scheme in order that the EU ETS will guide to emission reductions and use of new technologies such as technical sinks to achieve these within the EU. 

The Government also supports the proposal concerning flexibilities between sectors, considering that these will be needed to implement the climate target in a way that is impactful and cost-effective. The flexibilities should be planned carefully to make sure that they will not interfere with the incentives to reduce emissions. The special characteristics of different sectors should also be taken into account in the flexibilities. The Government considers that the flexibilities should allow the Member States to compensate for slower progress in climate actions in a certain sector through faster progress in other sectors.

The Government considers it important that technical sinks will be included in the EU’s emissions trading and that biogenic sinks will be treated in the same way as carbon dioxide captured directly from the air.

In addition, the Government considers the Commission’s proposal for the framework that will guide the preparation of the implementation of the 2040 climate target as appropriate and stresses a realistic approach to the implementation of the climate target, focus on cost-effective emission reductions and development of technologies.

Inquiries

Lyydia Ylönen (political questions) 
Special Adviser to Minister Sari Multala  
[email protected]
tel. +358 50 476 1341

Laura Aho
Ministerial Adviser
[email protected]
tel. +358 295 250 135