Unlike China, which has just announced its 2035 emissions reduction target under the Paris agreement, the European Union has stumbled on its climate goals by missing the end-September deadline for setting its own 2035 emissions reduction target, releasing instead a “statement of intent” promising to finalize the goal before COP30 this November.

In short, the EU missed the deadline because member states could not agree on the level of ambition and on the “flexibilities” that should be allowed in the target. The statement of intent was approved by the Environment Council ( EU environment ministers meeting ) on September 18 in Brussels.

However, the EU’s statement of intent, experts say, is not a guarantee that there will be a formal agreement on the 2035 emissions targets by COP30 in November since it’s a non-binding political commitment and a temporary compromise before the summit begins, but without locking in the final details or resolving key disputes.

For Asian institutional and ultra-high-net-worth investors with cross-border portfolios, however, the delay means more value and investment opportunities, particularly in carbon markets, renewables and transition technologies.

For context, the missed deadline highlights how the EU’s climate trajectory hinges not only on ambition but also achieving a consensus on the mechanisms allowed to achieve it. The most important mechanism under debate is Article 6 of the Paris agreement concerning the use of international carbon credits to achieve the targets, according to a report from the Carbon Gap policy tracker, entitled EU 2040 Climate Targets: Emissions Reduction and Carbon Removal, published on August 5.

Although the EU remains committed to climate neutrality by 2050 and has already proposed a 90% emission cut by 2040, the debate now is about pace and flexibility, including whether to allow the use of international carbon credits and domestic carbon removals in meeting targets.

By missing the deadline and failing to resolved debate on whether to allow the use of international carbon credits, the EU is effectively paving the way for potential future demand from Europe for Asia-sourced carbon offsets.

If the EU ends up permitting these, it will open the door to buying offsets from outside Europe to help meet its 2035 and 2040 targets, according to a Reuters analysis, entitled EU Includes International CO2 Credits in Climate Goal for First Time, published on July 2.

Countries, such as Indonesia, Vietnam and India, with strong renewable and nature-based project pipelines, are well-positioned. Singapore, already building itself up as a carbon trading hub, could emerge as the key Asian gateway for these flows. For investors, early positioning in carbon project developers or nature-based solution funds offers a potential long-term payoff.

Also, the EU’s delay may temporarily dampen momentum for European renewable tenders, with knock-on effects for Asian suppliers of solar panels, wind components and batteries.

However, the structural demand story, experts say, is unchanged. “To stay on track for 2050, Europe will ultimately need to accelerate adoption, which supports long-term opportunities for Chinese solar firms, Korean and Japanese battery makers and regional cleantech venture funds,” according to a report from Rystad Energy Analysis. “For patient investors, short-term weakness could present attractive entry points.”

The delay also indirectly extends the window for natural gas as a transition fuel, supporting liquefied natural gas ( LNG )-linked investments in Asia-Pacific, from shipping to infrastructure. However, coal exporters face a clear long-term demand headwind as the EU moves steadily towards deep decarbonization, according to a McKinsey & Company report, entitled The Impact of Decarbonization on the Gas and LNG Industry, published June 30 2021.

For Asian investors, the EU’s delayed 2035 climate target is best viewed as a strategic pause. In the short term, expect some volatility in European renewables and green finance. Over the medium to long term, the eventual targets will expand opportunities for Asian carbon markets, clean energy suppliers and transition technologies, according to an Asian Development Bank’s report, entitled Asia’s Energy Transition and the EU’s Climate Leadership: Opportunities Amid Delays, published September 20 2025.

In other words, the EU’s internal climate politics should not deter Asian capital, but rather guide it towards the emerging winners of the global net-zero race.