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Energy

10th report on the state of the energy union

Main findings of the report

The report confirms progress on the implementation of the EU’s Affordable Energy Action Plan, published in February 2025, to further reduce energy costs, modernise grids and expand interconnections. 

According to the Progress report on competitiveness, annexed to the main report, the EU leads in public research and innovation (R&I) investment in clean tech, with more engagement needed to secure private R&I investment. To enhance innovation, secure supply chains, and maintain global competitiveness, additionally to the European Competitiveness Fund and Horizon Europe, the EIB’s TechEU programme is expected to mobilise €250 billion by 2027. 

Based on the National Energy and Climate Plans and latest greenhouse gas projections submitted by EU countries, we continue to progress towards the EU’s 2030 targets of reducing net greenhouse gas emissions by at least 55% compared to 1990 levels and achieving at least 42.5% renewable energy in the EU energy mix.  

The report underlines the need to maintain momentum through faster clean-tech investment and stronger efforts on energy efficiency - in buildings, products, heating and cooling systems. The Clean Industrial Deal for Europe and the Competitiveness Compass will play a central role in creating the right conditions for continued progress.  

It concludes that the EU must evolve into an ‘electro-continent’, which relies on domestically produced clean energy. Strengthening energy security and resilience remains paramount, as the EU continues to navigate a complex geopolitical context. To deliver large-scale electrification, electricity in final energy consumption will need to double from 23% target today to around 50% by 2040.  

Our annual State of the Energy Union Report is clear: the EU is making progress in phasing out its dependency on imported fossil fuels while increasing the share of renewables. But we must go faster by speeding up deployment, invest more in infrastructure and ultimately bring down energy prices. Clean, secure and affordable energy is the foundation of a genuine Energy Union that delivers economic prosperity, a better environment and security to its citizens and businesses. Now is the time to seize the opportunities offered by global clean energy transition.

Dan Jørgensen, Commissioner for Energy and Housing