Energy transition

Energy transition is central to the European Union's ambition to achieve climate neutrality by 2050. The EU greenhouse gas emissions reduction targets - 55 % by 2030 and net-zero by 2050 - have accelerated the move away from fossil fuels towards cleaner energy sources and increased energy efficiency. The REPowerEU plan and other EU measures launched in response to the energy crisis meanwhile brought to the fore the importance of ensuring energy security and energy affordability. Existing EU legislation in support of energy transition includes the recently revised Renewable Energy Directive, the Energy Efficiency Directive and the Energy Performance of Buildings Directive. These laws set targets for renewables in consumption, energy efficiency and building renovations. The recently adopted hydrogen and decarbonised gas market package, along with the electricity market reform, also promote the use of cleaner energy and integration of renewables into the EU energy system. The new political priorities of European Commission President Ursula von der Leyen include a future clean industrial deal boosting investment in clean energy infrastructure and technologies. The aim is to further decarbonise the economy and bring down energy prices. In a similar vein, the recent report on EU competitiveness (Draghi Report) highlights the need to reconcile industrial competitiveness with climate neutrality through increased support for clean technologies. These include for instance renewables (such as solar and wind), batteries, heat pumps, electrolysers (used for hydrogen production) and CO2 capture technologies. While the EU has been steadily increasing the rollout of renewables and working towards decarbonisation, several challenges remain. The energy infrastructure must be adapted to accommodate low-carbon energy sources through the expansion of grids and energy storage. Dependence on raw materials needed for clean energy technologies needs to be addressed. The new EU ambitions in terms of boosting industrial competitiveness will also require massive investment. All this has to happen while ensuring secure energy supply and energy affordability.