Austria announces new climate protection law targeting 2040 neutrality

The Austrian government has announced plans for a new climate protection law aimed at achieving climate neutrality by 2040. This target is more ambitious than the European Union’s 2050 goal. The new legislation follows the expiration of previous emission targets in 2020 and is expected to be submitted for review shortly.

Discussions regarding the law have highlighted several points of contention. Critics, including members of the FPÖ, have raised concerns over the management of CO2 pricing revenues. While national CO2 levies and EU emissions trading generated significant funds in 2025, there is debate over the abolition of the climate bonus and whether these revenues are being redirected into the general federal budget rather than being used for specific climate measures.

Economic impact remains a central theme. While some experts argue that the sectors under national responsibility—such as transport, buildings, and agriculture—are well-protected from import competition, others warn of potential industrial relocation. The cost of implementing the 2040 goal is estimated to reach up to 178.7 billion euros, prompting concerns from industry groups regarding long-term competitiveness.