European Council: what leaders decided on Ukraine, defense, and climate

Decisions on competitiveness, defense and climate

Competitiveness was one of the topics addressed at today’s summit. The Council’s conclusions highlight passages on climate, including the review clause on the 2040 climate target and the reference to technology neutrality. This includes the intention to advance the revision of the regulation on emissions standards for cars and vans, which is the basis for the ban on the sale of new internal combustion engines from 2035. The Council also requests “a swift presentation of this proposal, taking into account technology neutrality and European content.”

Regarding climate objectives, the approved conclusions reiterate three key conditions in writing: the contribution of CO2 absorption, which must be “realistic” and must take into account “uncertainties related to natural removal,” ensuring that any shortfalls “do not come at the expense of other economic sectors”; the contribution of international credits, which must be “ambitious and cost-effective, in particular by defining an adequate level of high-quality international credits”; and the need for a review clause, “in light of the latest scientific evidence, technological advances, and evolving challenges and opportunities for the EU’s global competitiveness.” In short, the Twenty-Seven agreed to call on the EU to review the pathways to the intermediate objectives of the green transition, to introduce adjustments and reduce any negative impacts on businesses and competitiveness.

On the defense front, EU leaders confirmed their determination “to rapidly and comprehensively achieve” defense objectives by 2030 “so that Europe is better equipped to act and address immediate and future challenges and threats in an autonomous, coordinated, and holistic manner,” according to the conclusions adopted this afternoon. The Council called for “the Member State-led work on all priority capability areas identified at EU level to be operationalized, with the support of the European Defence Agency and based on a coherent overall approach, so that Europe develops the full spectrum of necessary modern capabilities, in full coherence with NATO,” the conclusions read. Finally, it recognized “the work already done by Member States and called on them to complete the process of building capability coalitions in all priority areas by the end of the year and to advance concrete projects to be launched in the first half of 2026.”