In early June the European Commission is expected to present a long-awaited legislative proposal for a European climate target for 2040. The new objective will serve as a bridge between the existing targets for 2030 and 2050. It will determine the decarbonisation pathway for the entire European economy over the next decade, encompassing sectors covered under ETS1 (fossil power generation, heavy industry, aviation, and maritime) and ETS2 (road transport and heating). Back in February 2024, the Commission presented a ‘communication’ suggesting a 90% target, but the actual legislative proposal has been delayed due to persistent opposition among member states and in the European Parliament. The Commission’s response is to allow for a degree of ‘flexibility’ in the form of carbon removal units and/or carbon credits issued from abatement projects outside of Europe.