Published by Global Banking & Finance Review®
Posted on October 14, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on Google
EU leaders aim for 2040 climate goals, demanding more industry support to ensure a successful low-carbon transition.
By Kate Abnett
BRUSSELS -European Union leaders plan to agree for the bloc to set a new climate change target for 2040, but demand the EU does more to support industries like steel and carmaking to meet it, draft conclusions for an EU summit next week showed.
The EU had planned to approve its new climate target by a U.N. deadline last month. But talks fell apart when France, Poland and others demanded that government leaders first debate the 2040 goal, reflecting concerns over how to fund the low-carbon transition alongside priorities like defence and revitalising local industries.
Draft conclusions for an EU leaders' summit on 23 October, seen by Reuters, said leaders would agree EU countries and lawmakers could proceed in setting the 2040 climate goal. However, they would also demand the European Commission develop a stronger "enabling framework" to support industries and citizens through the green transition, it said.
"Particular attention should be paid to traditional industries, notably the automotive, shipping, aviation and energy-intensive industries, such as steel and metals and chemicals, so that they remain resilient and competitive in a global market," said the draft conclusions, dated 13 October.
The draft conclusions did not demand specific funding or changes to EU policies envisaged in exchange for leaders' backing of the emissions-cutting goal.
However, EU diplomats said some countries are seeking changes to the bloc's carbon border tariff, while others want the EU's 2035 phase-out of new combustion engine cars weakened.
The draft conclusions said the EU must meet its climate aims "in a technologically neutral manner" - a phrase often used by governments to oppose EU policies that restrict certain technologies, such as the combustion engine car phase-out.
German chancellor Friedrich Merz vowed last week to try to ensure there is no hard cut-off in 2035 for CO2-emitting cars.
If EU leaders give their green light to the conclusions, their climate ministers plan to meet on November 4 to approve the climate target, just in time for the U.N.'s COP30 climate summit.
(Reporting by Kate AbnettEditing by Frances Kerry)
Climate change refers to significant changes in global temperatures and weather patterns over time, primarily driven by human activities such as burning fossil fuels.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the EU's day-to-day operations.
Sustainability is the practice of meeting current needs without compromising the ability of future generations to meet their own needs, often focusing on environmental, social, and economic factors.
Traditional industries refer to sectors that have been historically significant in the economy, such as manufacturing, agriculture, and mining, which may face challenges in adapting to modern sustainability practices.
Explore more articles in the Headlines category
