The European Commission has published the State of the Energy Union Report 2025 and the accompanying Climate Action Progress Report 2025. They show the significant strides the EU has made in transitioning to a robust and integrated Energy Union by progressing on the clean energy transition with more renewables, addressing high and volatile energy prices and affordability, and further reducing greenhouse gas (GHG) emissions. This is increasing competitiveness, decarbonisation and strengthen energy security and independence reducing EU's reliance on imported fossil fuels.
The reports confirm once again that the EU is well on track to meet its 2030 climate target, with a 2.5% decrease of GHG emissions in 2024 compared to 2023. The reports also outline how the EU has tackled evolving domestic and global challenges and highlight the crucial role of clean and affordable energy and continuous efforts cutting emissions in reaching EU's security, energy independence, competitiveness and climate neutrality objectives.
Progressing towards 2030 climate and energy targets
As confirmed in the Commission's assessment of national energy and climate plans based on the National Energy and Climate Plans and latest greenhouse gas projections submitted by Member States, the EU continues to progress towards the 2030 targets of reducing net GHG emissions by at least 55% compared to 1990 levels and achieving at least 42.5% renewable energy in the EU energy mix.
Most of the electricity produced in the EU now comes from clean energy sources, although progress differs between Member States. The newly installed renewable energy capacity in 2024 is estimated at around 77 GW and the EU electricity mix counted 47% renewables already in 2024. Final energy consumption keeps going down, with a 3% decrease compared to 2022 mainly in the residential sector, followed by industry and services.
Reaching the 2030 EU energy targets will require a much faster uptake of renewables and energy efficiency improvements in the coming years.
GHG emissions in the EU continue to decline, with provisional data for 2024 showing how total net GHG emissions decreased by 2.5% compared to 2023. Emissions were 37.2% lower than in 1990 (or 39% when only domestic net emissions are considered), while GDP was 71% higher, meaning that economic growth continues to decouple from emissions. These figures are aligned with the European Environment Agency Trends and Projections report also release today.
Lowering energy prices and enhancing competitiveness with clean energy sources
The implementation of the EU's Affordable Energy Action Plan and Clean Industrial Deal is on track and remains crucial to bring relief to our industries and consumers both in the short and longer term. Nonetheless, average energy prices in Europe are still higher than our competitors, and largely differ across EU Member States, hindering the competitiveness of major industrial players and the economy overall. This is why, the Commission is taking this seriously and stepping up efforts to lower energy prices, building on a set of 7 key actions to bring quick and long-lasting relief to industries and consumers. This is a top priority for the EU and its Member States. The European Investment Bank for instance is launching a €1.5 billion programme to provide bank guarantees to European grid component manufacturers and a pilot project of €500 million in counter-guarantees for clean Power Purchase Agreements.
In the long term, a genuine Energy Union relying on domestically sourced clean energy generation and increased energy efficiency will reduce the EU dependence on fossil fuel imports even further, structurally lower energy prices and contribute to achieve our climate objectives. The EU has significantly reduced the share of Russian gas in its imports from 45% in 2021 to 12% by August 2025.
Electricity consumers in the EU already saved €100 billion thanks to electricity generation from new solar PV and wind power in 2021-2023, while every 1% of improvement in energy efficiency translated into a 2.6 % reduction in gas imports. This underlines importance of unlocking the potential of renewable energy and energy efficiency to enhance energy security and competitiveness.
Seizing the moment to complete the Energy Union
The next decade will be decisive in completing the Energy Union and in achieving climate-neutrality by 2050. The amendment of the European Climate Law, setting an EU climate target of 90% GHG emissions reduction by 2040 compared to 1990 levels is under negotiation. Once agreed by both co-legislators, it will be a benchmark for the post-2030 policy framework.
Several challenges are still to be addressed. The EU needs to deliver large-scale electrification, electricity in final energy to increase from 23% target today to around 32% by 2034 and substantially upgrade investments in grids, step up the efforts on energy efficiency and boost innovation to build a competitive clean tech sector. To overcome such challenges, the Commission estimates that the EU needs to mobilise €695 billion annually from 2031 to 2040 for energy related investments. The proposal for an ambitious EU Multiannual Financial Framework for 2028-2034 is geared towards reinforcing cross-border infrastructure and channeling funding towards strategic clean energy technologies. The upcoming revision of the Governance Regulation on the Energy Union and Climate Action as part of the post-2030 framework will be pivotal in this sense.
