The European Commission has published a report which recommends setting a target of reducing greenhouse gas emissions by 90 per cent by 2040 compared to 1990 levels.
It is a new intermediate target on the pathway to becoming climate neutral by 2050 and, following the publication of an impact assessment this week, a legislative proposal will be made by the next Commission, after this year's European elections in June.
The proposal includes a number of means by which to meet the intermediate target including the full implementation of the already agreed target to reduce emissions by at least 55 per cent by 2030.
Campaign group Transport & Environment welcomed the news, saying it gives airlines and other transport providers "the investment certainty that clean technology is here to stay", but warned the proposals were undermined by a series of shortcomings.
A statement from the European Commission said: "Setting a 2040 climate target will help European industry, investors, citizens and governments to make decisions in this decade that will keep the EU on track to meet its climate neutrality objective in 2050."
The Commission will set up a dedicated taskforce to develop a global approach to carbon pricing and carbon markets and says a mix of private and public sector investment must be mobilised, noting that the pace of decarbonisation depends on the availability of technologies that deliver carbon-free solutions.
"We have just lived through the hottest year on record. The case for climate action is beyond doubt and requires planning now. Going forward, we will have to stand more firmly on two legs: a safe and healthy climate for all to live in, and a strong, resilient economy, with a bright future for business and a just transition for all," said Wopke Hoekstra, commissioner for Climate Action.
"This communication we are presenting today is also a message to our partners around the world that Europe continues to lead the way in global climate ambition. Tackling the climate crisis is a marathon, not a sprint. We need to make sure everyone crosses the finish line, and nobody is left behind."
Transport & Environment heralded the announcement but warned the transport sector puts the target at risk. It said the proposals marked an "historic day" but make no mention of phasing out oil and gas "even though it is imperative to meet the target".
"The EU showed the world how you can turn real climate ambition into powerful industrial policy. Industry players at home and outside of Europe can turn to the EU for production and sales of green tech, as they can be assured of a growing market and predictable demand," said Sofie Defour, climate director at T&E.
"But this headline goal will fall flat if it doesn’t come hand-in-hand with a phase-out of fossil fuels and new laws cracking down on the oil majors. Europe will desperately try to meet a 2040 goal whilst still feeding on fossil fuels. But you simply can’t outrun a bad diet."
T&E believes the Commission has failed to take into account aviation's biggest climate impact – extra-EU emissions and non-CO2 warming effects. In addition, it says, the target fails to match the ambition of the existing ReFuelEU Aviation regulation, which requires green fuels deployment for all flights taking off from EU airports.
While the organisation welcomes plans to increase the ambition of sustainable aviation fuel legislation, the lack of consideration of extra-EU emissions non-CO2 warming effects "undermines the whole package".
Defour adds: "The flaws and loopholes in the text are all fixable. The EU shouldn’t undermine its own effort to slash millions of tonnes of CO2 by caving into the pressure of a handful of polluting industries. It’s time to put an end to uncontrolled growth and profit of transport’s biggest polluters and instead focus on helping them go green by 2040."