Point of contention off the table

Under Review: Here’s What’s Now in the Climate Act

Austria is set to become climate-neutral by 2040—the bill to achieve this is scheduled to undergo review today.(Bild: Krone-Collage/Klemens Groh, Jana Kuehle, APA/HELMUT FOHRINGER)

For weeks, there were negotiations, haggling, and arguments. Now the government’s climate package is on the table—including 240 million euros in drought aid. Read the key details of the new package here.

After tough negotiations and plenty of internal coalition disputes, the new Climate Act and the drought aid are now actually on the table. On Friday, or Monday at the latest, the draft will be sent out for review. On Friday, the government—Environment Minister Norbert Totschnig (ÖVP) and the climate spokespeople for the coalition parties—presented the details.

However, following the package’s presentation two weeks ago, the focus has now shifted to fine-tuning the wording of the law. The key points remain the same:

Climate neutrality by 2040 as the goal
The new climate law is intended to chart Austria’s path to climate neutrality by 2040. How this goal is to be achieved in concrete terms will be regulated in the so-called climate roadmap, which the government must adopt by the end of 2027. This roadmap will set out specific measures, timelines, and responsibilities. Also planned are a location clause, annual emissions caps, ongoing monitoring, and a correction mechanism in case targets are missed.

One key change from the original point of contention is now set in stone: Climate neutrality by 2040 is explicitly  enshrined in the Climate Roadmap. This was precisely the issue that had sparked discussions beforehand.

No Sanctions, but a Correction Mechanism
Julia Herr (SPÖ) described the law as “highly ambitious.” She noted that it is not just a matter of implementing EU requirements, but also of establishing a concrete roadmap with clear responsibilities. Measures should not begin as late as 2027, but should be implemented well before then.

According to the SPÖ representative, there had been no climate protection law for 2,086 days. Now, for the first time, a corresponding draft can be presented again.

Three Pillars of Climate Protection
Environment Minister Norbert Totschnig (ÖVP) outlined three key priorities for the package: reducing emissions, adapting to climate change, and the circular economy.

According to Totschnig, the government is focusing on renewable energy for emissions reduction. Wherever possible, oil and gas should be phased out. At the same time, the minister emphasized the importance of innovation and technology for climate protection. This could create new jobs, secure prosperity, and make Austria more resilient to crises.

Climate change adaptation, he noted, involves, among other things, keeping homes cool, ensuring an adequate supply of drinking water, and food security. The circular economy, in turn, is intended to help reduce resource consumption and dependence on imports.

240 Million Euros for Agriculture
Along with the Climate Act, the government has also agreed on a 240-million-euro drought relief package for agriculture. This is intended to cushion the impact of increasing weather extremes on the agricultural sector.

NEOS climate spokesperson Michael Bernhard highlighted the consequences of the heat during the presentation. He cited more than 600 heat-related deaths this summer and simultaneously emphasized the economic problems caused by dependence on fossil fuels.

End to CO2 Storage Ban and EIA Amendment
According to reports, a draft bill to repeal the ban on CO2 storage has also been finalized. An amendment to the Environmental Impact Assessment Act (UVP) aimed at accelerating procedures is reportedly in place as well. The ÖVP had particularly pressed for both of these points during the negotiations.

The next formal step is now the review of the draft bill. This will be followed by further parliamentary proceedings.