Roadmap without sanctions: How Austria wants to be climate neutral by 2040

The Austrian government has finalized an agreement on a new climate law, marking a key step toward achieving carbon neutrality by 2040. After more than five years without a valid climate law, the government announced its decision on Friday afternoon. The core of the legislation is the commitment to reach net-zero emissions by 2040, earlier than the previously advocated 2050 target, which had been strongly pushed by representatives from industry and economic sectors. This new climate law is classified as a governance law, establishing the legal framework and defining responsibilities across different governmental bodies. A more detailed document, known as the Climate Action Plan, is still under development and is expected to be completed by the end of 2027. This plan will outline specific measures for each sector, including transportation, buildings, and agriculture, aimed at meeting Austria’s climate goals. The law represents a massive undertaking, requiring each legislative measure to be thoroughly documented. To oversee this process, a “Climate Cabinet” has been formed, comprising officials from five ministries and the chairperson of the Conference of State Presidents. Additionally, a newly established scientific advisory board will include experts from natural sciences, social sciences, economics, technology, and professionals from the Environmental Agency. These advisors will prepare recommendations for the Climate Action Plan. One of the contentious points during discussions was the question of consequences if Austria fails to meet its emission targets. It was decided that there will be no sanctions, a stance reaffirmed by Agriculture and Climate Minister Norbert Totschnig (ÖVP) during a recent broadcast. Instead, a correction mechanism is in place. If the country deviates from its path, the Climate Cabinet must convene within nine months to implement corrective actions. The effectiveness of these measures will be evaluated by the scientific advisory board, with input from social partners and three environmental NGOs, though none have veto power. Initial criticism comes from the Greens, who argue the draft lacks binding measures and clear consequences. Environmental NGOs also find the proposal insufficient. Despite this, Klimaökonom Karl Steininger from the Wegener Center for Climate and Global Change at the University of Graz expressed support for the new law, noting that it follows the last binding obligation from 2020. He praised the correction mechanism and the advisory board as meaningful steps. However, he suggested improvements, such as requiring the Climate Cabinet to justify non-adoption of the advisory board's recommendations, which would strengthen the draft. Steininger emphasized the importance of aligning monitoring of greenhouse gas emissions with budget planning. He pointed to Sweden’s approach, where emissions are reviewed six months before the budget is drafted, allowing adjustments to be made accordingly. He questioned the delay in developing the Climate Action Plan, stating that while the structure is sound, many necessary measures were already well understood. He also welcomed the repeal of restrictions on carbon capture and storage (CCS), faster environmental impact assessments (EIA), and further reductions in land use. These measures, according to Steininger, represent positive developments in the effort to achieve climate neutrality.