The Electrification Action Plan sets a target of raising the EU's electrification rate from 23% to 46% of final energy demand by 2040. Electrification is framed as the main lever for reducing fossil fuel dependence and industrial energy costs. In parallel, the ETS review proposes to extend free allowances for carbon-intensive sectors, including chemicals, steel and cement, until 2038. This extension is conditional on companies demonstrating credible decarbonisation plans. For the chemicals industry, the package is directly relevant to feedstock and energy transition planning, as well as to compliance timelines under the EU's carbon pricing framework. The proposals will now be negotiated with the European Parliament and Council, with final adoption expected to extend into 2027.

#ETS #Electrification #Decarbonisation #EUChemicals