According to a new European Environment Agency (EEA) report, expanding renewable electricity and accelerating electrification of heating, transport, and industry are vital for achieving EU climate and competitiveness goals. The EU has made notable progress in decarbonising the electricity sector, but transformation in heating and transport remains slow.

Increased investment in domestic solar and wind power, paired with energy efficiency improvements, could significantly reduce the EU’s energy import dependency and lower electricity generation costs – potentially by up to 57 % by 2030 compared to 2023 levels.

The report identifies three priorities to enable this shift:

• unlocking investment in renewables to meet 77 % of installed capacity by 2030;
• doubling energy system flexibility through smart grids, storage, and demand response;
• enhancing EU-wide coordination to optimise infrastructure and resilience.

Sector-specific actions, such as electrifying home heating with heat pumps, industrial upgrades under the EU ETS, and scaling electric vehicle use, are also essential. The report urges Member States to phase out fossil fuel subsidies, improve energy taxation, and adopt coordinated policies to speed up the transition.