Carbon Reduction Activities in Europe: January 20-26, 2025

Executive Summary: Recent developments in Europe have highlighted a strong commitment to carbon reduction, with significant events and policy proposals aimed at achieving ambitious climate goals. The European Commission has been actively engaging stakeholders to enhance funding mechanisms for permanent carbon removal, while also setting new interim targets for emissions reduction by 2040. Additionally, the European Central Bank has updated its climate and nature plan, emphasizing the integration of climate considerations into its monetary policy strategy.

1. Public Funding for Permanent Carbon Removal

On January 28, 2025, the Directorate-General for Climate Action of the European Commission organized a one-day event focusing on public funding for permanent carbon removal. The event aimed to explore and enhance the financing landscape for climate action, with a specific emphasis on instruments supporting permanent carbon removal. Participants gained insights into existing European financing instruments such as the Innovation Fund, the European Innovation Council, and Horizon Europe. The event fostered dialogue among stakeholders and provided actionable insights to shape more effective financial support for climate goals. Source

2. European Commission’s Emissions Reduction Target for 2040

The European Commission has proposed a new roadmap to cut EU emissions by 90% below 1990 levels by 2040. This ambitious target is part of the EU’s broader goal of achieving net-zero emissions by 2050. The proposal requires an expanded and emissions-free power system and an 80% reduction in fossil fuel use for energy. The Commission has called for increased ambition in national energy and climate plans, emphasizing the need for substantial investments in renewable energy and electricity network expansion. Source

3. European Central Bank’s Climate and Nature Plan 2024-2025

In January 2024, the European Central Bank (ECB) published an updated climate and nature plan for 2024-2025. This plan includes a commitment to analyze nature-related issues and identifies three focus areas to guide the ECB’s climate-related activities. The ECB aims to integrate climate change considerations into its monetary policy strategy, macroeconomic analysis, and financial stability activities. The plan emphasizes the need for green investment, technological innovation, and green funding to transition towards a low-carbon economy. Source

4. European Carbon+ Farming Coalition

A new initiative, the European Carbon+ Farming Coalition, has been launched to decarbonize Europe’s food system. This coalition, catalyzed by the World Economic Forum’s CEO Action Group for the European Green Deal, aims to transform agriculture, which is responsible for 10% of Europe’s greenhouse gas emissions. The initiative focuses on increasing the uptake of regenerative and climate-smart agriculture practices, developing financial tools for farmers, and aligning efforts across European countries. Source

5. EU’s New Economic Vision and Green Deal

The European Union’s new economic “compass” has sparked discussions about deregulation and its impact on the Green Deal. A leaked draft document suggests a focus on slashing environmental red tape to boost the European economy, while maintaining commitments to climate targets. The document emphasizes the need for a competitiveness-friendly and technology-neutral transition to a decarbonized economy. Source