Leaders seek balance on climate goals and Ukraine funding at EU Summit
European leaders gathered in Brussels on Thursday for a summit marked by two dominant themes: how to keep climate ambitions economically viable, and how to finance ongoing support for Ukraine amid legal uncertainty over frozen Russian assets.
Climate: flexibility over rigidity
On climate policy, heads of state and government reaffirmed their commitment to the Paris Agreement but asserted that new targets must not jeopardise Europe’s competitiveness. “We reaffirmed our commitment to the Paris Agreement and emphasised that we must be pragmatic and flexible in our strategy,” said European council president António Costa after the meeting.
The European Commission has proposed a 90 per cent cut in greenhouse gas emissions by 2040, but several leaders urged caution, calling for the social and economic impact of such targets to be discussed before decisions are made. While the conclusions allow work on the targets to proceed “swiftly,” the 90 per cent figure itself was deliberately omitted.
Leaders instead opted to review mechanisms that account for scientific data, technological progress and Europe’s industrial position. They also underlined the importance of carbon capture technologies and the potential use of international carbon credits, though some warned of the risk of greenwashing. A new meeting of environment ministers will be held on 4 November, with Denmark hoping to make progress before the UN climate conference in Brazil.
Reassessing Europe’s green commitments
Existing climate laws also came under scrutiny, notably the planned 2035 ban on combustion-engine vehicles. Germany has questioned the measure, while France and Spain continue to back it. The leaders welcomed a Commission review due by year’s end and urged “technological neutrality” in any new proposal.
The summit acknowledged concerns over the forthcoming expansion of emissions trading to transport and heating sectors in 2027. The Commission pledged to mitigate potential price rises, a key concern for Poland.
Ukraine funding: legal and financial hurdles
Beyond climate, discussions turned to financing Ukraine’s war effort. A proposal to use frozen Russian central bank assets, much of which are held in Brussels-based Euroclear, was omitted from the final decisions.
Belgian prime minister Bart De Wever said the idea remains under consideration. “I would prefer an alternative solution, but I am only poor little Belgium,” he remarked after the summit.
The Commission is studying ways to mobilise around 140 billion euros, possibly through loans backed by the Russian assets. De Wever voiced legal and financial concerns, noting that Japan, which holds 50 billion euros in Russian reserves, has already ruled out tapping them. He also echoed European Central Bank president Christine Lagarde’s warning that cash liquidity must be guaranteed if Russia demands repayment.
“I asked my colleagues who was willing to sign. The request wasn’t met with a tsunami of enthusiasm,” De Wever said wryly, adding that a broader approach, involving assets outside the eurozone, might reduce legal risks.
While Belgium’s amendments to reflect these concerns were ultimately dropped, leaders agreed that the Commission would continue to explore “options” for funding Ukraine. “Time is of the essence,” De Wever stated. “We need to find a solution before the end of the year.”
Ukrainian president Volodymyr Zelensky and president of the European Council, Antonio Costa at a European summit in Brussels, on 23 October, 2025. © PHOTO SERGE TENANI / HANS LUCAS VIA AFP
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