The European Climate Law mandates the European Commission to propose a 2040 emissions reduction target by early 2024. In light of the latest report from the European Scientific Advisory Board on Climate Change, the German Environment Agency follows suit and recommends adhering to scientific advice, aiming for the most plausible climate ambition, and setting a domestic 2040 net greenhouse gas emissions reduction target of 95%, compared to 1990.

With this 2040 interim target in mind, the paper further discusses the interaction between emissions reductions and sinks, the implications for the current architecture of climate policy (consisting of the three pillars: emissions trading, effort sharing and ⁠LULUCF⁠ regulations)  as well as aspects of regular target reviewing and tightening.