Ambitious plans put forward by the European Commission are yet to be approved by member states as divisions persist amid a competing push to boost the bloc's ailing industry.
Environment ministers from the 27-nation union are to hold a key meeting on November 4.
- Where is the EU at? -
The commission said it wants to cut emissions by 90 percent by 2040, compared to 1990 levels -- a major milestone towards the overarching goal of reaching net zero a decade later.
But some countries, such as Poland and the Czech Republic, see the target as unachievable and are dragging their feet, demanding concessions.
This has in turn caused Brussels to miss the deadline to submit a linked 2035 emissions reduction plan to the UN.
Signatories to the Paris Agreement were supposed to file their updated 2035 targets well ahead of COP30, which starts in Brazil on November 10.
Brussels is still hoping to have something to show for its efforts in time for the summit.
In the meantime it has come up with a non-binding compromise "statement of intent" to cut emissions between 66.25 percent and 72.5 percent.
But that falls short of its obligation under the Paris treaty and critics say it is unbecoming for a global climate action leader.
- What are the main issues? -
In an attempt to break the deadlock, the EU's 27 leaders discussed the matter at a summit in Brussels on October 23.
They urged Brussels to include a revision clause in its 2040 proposal to allow future tweaks if needed and to allow countries to count "an adequate level" of carbon credits towards their target.
The use of carbon credits is one of two "sticking points" in the negotiations, according to Neil Makaroff of the Strategic Perspectives think tank.
An earlier commission pledge for credits to account for up to three percent of a nation's emission cuts failed to persuade hardliners.
The other issue is carbon sinks, with countries like France pushing to eschew binding targets, worried about the deterioration of forests and other emission absorbers.
A commission plan to amend an emissions trading system has also proved divisive.
- What's the big picture? -
Behind only China, the United States and India in terms of greenhouse gases, the EU has been by far the most committed of the major polluters to climate action, having already cut emissions by 37 percent compared to 1990.
Together with its member states, it is also the biggest provider of climate finance in the world, with 31.7 billion euros ($36.9 billion) in public funds mobilised in 2024.
That has helped it style itself as a global leader in climate action, at a time when the United States is in full retreat.
But tensions between the EU's desire to play a starring climate role and boost its sluggish economy have been bubbling up for months.
A growing number of capitals, in what is an increasingly right-leaning bloc, have been receptive to industry's arguments that more flexibility is needed to regain competitiveness vis-a-vis China and the United States.
While the overall trajectory towards net-zero is not up for discussion, calls for leeway have multiplied.
Germany for example has come out against a 2035 ban on new combustion engine vehicles, opposed by many in the car industry.
On the other hand, green advocates argue bold climate action is essential to stave off the worst consequences of rising temperatures, draw investments and turn Europe into a green tech superpower.
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