To limit the impacts of climate change, over 190 countries around the world, including the European Union, have adopted the Paris Agreement goal of keeping global warming well below 2 degrees Celsius above pre-industrial levels, while pursuing efforts to limit the increase to 1.5 degrees. In pursuit of this temperature goal, the European Climate Law sets out a binding objective for the EU to reach climate neutrality by 2050 and sets the 2030 target for the EU, which is to reduce net domestic greenhouse gas emissions by at least 55% compared to 1990 levels. The law also requires the European Commission to propose a 2040 climate target for the EU in the first half of 2024, accompanied by an indicative EU greenhouse gas budget for the period 2030-2050. With this document, the European Scientific Advisory Board on Climate Change (the Advisory Board) provides an initial input on key issues for the European Commission to consider when preparing its 2040 target proposal and accompanying budget.