Next stop climate neutrality - Key questions for the 2040 climate target governance

The aim of this paper is to identify and discuss the open questions that need to be resolved for setting a 2040 target and developing the comprehensive policy package to achieve such a target. To do so, it discusses the most relevant issues concerning the 2040 target, the ETS 1 for stationary installations and the inclusion of aviation and shipping in the ETS 1. It also looks at the sectors covered by the Effort Sharing Regulation (ESR) with separate sub-chapters for the ETS 2, agriculture and the other remaining emissions covered by the ESR. The final chapter looks at the treatment of negative emissions.