The European Commission on Tuesday recommended a 90% net greenhouse gas emissions reduction by 2040 for the bloc, compared to 1990 levels.
It came after the Commission published a detailed impact assessment on possible pathways to reach the target of making the EU climate-neutral by 2050.
"Based on this impact assessment, the Commission recommends a 90% net greenhouse gas emissions reduction by 2040 compared to 1990 levels," it said in a statement.
The recommendation is in line with the advice of the European Scientific Advisory Board on Climate Change (ESABCC) and the EU's commitments under the Paris Agreement, according to the Commission.
"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," it said.
The plan will send "important signals" on how to invest and plan effectively for the longer term, minimizing the risks of stranded assets.
"Achieving a 90% emissions reduction by 2040 will require a number of enabling conditions to be met," said the Commission, adding that the starting point is the "full implementation" of the existing legislation to reduce emissions by at least 55% by 2030.
It further stated that the Green Deal now needs to become an "industrial decarbonisation deal" that builds on existing industrial strengths, like wind power, hydropower and electrolysers.
Pointing out that the bloc will continue to develop the right conditions to attract investment and production, the statement noted that a successful climate transition should go hand-in-hand with strengthened industrial competitiveness, especially in clean tech sectors.
