The EU will adopt a climate target for 2040 and a framework for its implementation in the coming years. The 2040 target and its implementation framework will be pivotal milestones on the EU's journey towards achieving climate neutrality by 2050 and ultimately attaining net negative emissions. Implementing rules that enable substantial emission reductions in industry will be a crucial part of this framework. The integrity of the EU's climate policies hinges on the strength and effectiveness of these rules.

A new report by the Ecologic Institute and the Oeko-Institut explores the past contribution of the industry sector to already achieved emission reductions as well as the contribution of the industry sector to the upcoming 2040 climate target and what it takes for industry to achieve the related emission reductions. With a focus on measures and policies governing that would further reduce emissions in industry, the report also examines the key challenges faced by the industry sector and how this is addressed in EU legislation.