EU sets course for 90% emission reduction by 2040: what does this mean for your SME?

The European Union has sent a clear signal: by 2040, greenhouse gas emissions must be reduced by 90%. It’s a major step towards climate neutrality in 2050. As an entrepreneur, this may sound like “yet another regulation”. But one thing is certain: sustainability is not leaving the agenda.

In this blog, we explain what has been decided, why it matters for your business, and how you can prepare in a smart and practical way.

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What exactly has the EU decided?

The European Parliament has approved a new climate target: by 2040, the EU must reduce emissions by 90% compared to 1990 levels. This builds on the existing 2030 target of at least 55% reduction. According to the European Commission, the EU is broadly on track, having already achieved a 37% reduction by the end of 2023.

To make the 2040 target achievable, several key measures have been added:

Flexibility in how reductions are achieved

From 2036, countries and companies may use international carbon credits for up to 5% of the total reduction. This means that 85% of emissions must be reduced within Europe itself.

Regular progress reviews

Every two years, the European Commission will assess progress. It will look at energy prices, technological developments and the EU’s competitive position. If needed, the target can be adjusted.

Delay of ETS2

The new emissions trading system for road transport and building heating (ETS2) will be postponed by one year, to 2028. Additional flexibilities will also be introduced for Member States. These measures aim to keep the EU ambitious, while remaining realistic and economically resilient.

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Why does this matter for your business?

You might think: “2040 is still a long way off.” But the reality is that these decisions already affect your business today. Legislation such as CSRD, stricter supply chain requirements and rising expectations from customers mean that sustainability is becoming part of everyday operations.

Read more here about why sustainability matters for your business.

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What does this mean for you in practice?

You don’t need to change everything at once. But it is wise to start taking steps now. This keeps sustainability manageable and accessible for your business.

Here are two practical steps you can take today:

1. Get insight into your carbon footprint

You can only improve what you understand. With Eevery’s simple Impact Scan, you quickly gain insight into your environmental impact, social responsibility and governance structure. This helps you identify where the biggest opportunities for improvement lie.

2. Make sustainability part of your strategy

A sustainability strategy doesn’t have to be complicated. At Eevery, we help you make this process simple and accessible. Our online tool gives you immediate insight into your current performance, your improvement opportunities and how to translate your goals into concrete actions. You don’t have to do it alone, we make it clear, practical and achievable.

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How does Eevery support you?

At Eevery, we believe sustainability should be simple, accessible and concrete. No long reports or complex analyses: just clear insights you can act on straight away.

With our online tool, you can:

• understand your CO2 emissions, social impact and governance structure
• identify where you can improve
• create reports that meet legal requirements
• build a strong sustainability strategy step by step

The new EU target shows that sustainability is not a temporary trend. It will remain a key part of doing business in Europe. You can start today with insight, transparency and improvement.

Want to know where your SME stands? Book a demo here!

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