2025 Competitiveness Progress Report on Clean Energy Technologies

The 2025 Competitiveness Progress Report (CPR) provides a snapshot on the EU’s competitiveness in net-zero technologies. The report builds on the report by Mario Draghi on EU competitiveness and the new Competitiveness Compass from January 2025. It also serves as the monitoring tool of the Net-Zero Industry Act. Adopted alongside the Clean Industrial Deal and the Action Plan for Affordable Energy, the report underpins both initiatives by providing insights into the technologies required to decarbonise the EU economy while strengthening its competitiveness and making energy more affordable.

Growing role of clean energy in the EU

CLEAN ENERGY DEPLOYMENT
The EU is increasing its use of clean energy. Renewables supplied 48% of its electricity mix in 2024, up from 45% in 2023 and 41% in 2022.

NET-ZERO TECHNOLOGIES
Clean energy drives the energy transition and offers the EU major economic opportunities. The EU is one of the largest global markets for net-zero technologies.

ECONOMY & JOBS
Clean energy technologies and their manufacturing provide an important contribution to the EU economy. Renewable energy jobs in the EU reached 1.8 million in 2023.

Challenges to EU competitiveness

Manufacturing & energy
costs: EU companies face
higher costs than their
competitors in other regions,
impacting their competitiveness.
Competitive pressure:
The EU faces fierce global
competition in the sector.
Production for several
technologies and components
is concentrated in China.

Innovation leadership:
The EU remains well
placed in research in clean
energy technologies but its
competitive advantage in
innovation has been eroding
in recent years. The EU lags
behind major Asian economies
in private R&I investment.
Private finance barriers:
Access to risk capital remains
a key challenge for starting
and scaling up EU firms in
the clean energy technologies
sector.

Supply chain resilience:
Dependencies on a few non-EU
suppliers for key components
and raw materials weakens
supply chains for many clean
energy technologies.
Workforce: A shortage of
skilled workers and an ageing
workforce impact the clean
energy sector.

EU actions to stay competitive in clean energy

EU POLICY SUPPORT
A supportive policy framework drives the EU’s netzero
technology manufacturing by supporting supply
and demand for renewables.

NET-ZERO INDUSTRY ACT
Implementing the act will provide coordinated
support for EU net-zero technology manufacturing.

BOOSTING EU COMPETITIVENESS
The Commission prioritises EU competitiveness
through a set of key initiatives adopted at the beginning
of its new term of office: the Competitiveness
Compass, the Clean Industrial Deal,

SUPPORTING RESEARCH & INNOVATION (R&I)
By supporting innovation and advancing new and existing
technologies, for example via Horizon Europe,
the EU strengthens its competitiveness. The EU leads
in public R&I spending on clean energy, investing €9
billion in 2022. First data suggests that public R&I in
the sector may have increased by 9% in 2023.

For more information on CPR, see the web page on clean energy competitiveness