Austria introduces new climate law targeting 2040 neutrality

Austria has introduced a new climate law aimed at achieving climate neutrality by 2040, ten years ahead of the European Union's 2050 target. The legislation is currently undergoing a review process and is built upon three main pillars: emission reduction, climate change adaptation, and the circular economy.

Environment and Agriculture Minister Norbert Totschnig described the law as a framework to secure prosperity and jobs while meeting environmental goals. The law establishes binding annual greenhouse gas emission limits through 2030 and mandates the creation of a climate roadmap with specific sector targets—covering transport, buildings, small industry, agriculture, and waste—by the end of 2027. A scientific climate advisory board will also be established to provide recommendations.

A key feature of the legislation is a correction mechanism: if annual climate targets are projected to be missed, the government must propose countermeasures within three months and reach a decision within a subsequent three-month period to ensure targets remain on track. The law specifically targets sectors not already covered by the European Emissions Trading System (ETS).