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European Commission sets 46% electrification target by 2040
The European Commission presented an Electrification Action Plan that aims to double the share of electricity in final energy consumption from the current 23 % to 46 % by 2040. The plan is presented as a way to make Europe the first continent powered primarily by clean electricity, reduce dependence on imported fossil fuels and cut the EU’s annual fossil‑fuel import bill by about €260 billion. It is coupled with a revision of the EU Emissions Trading System (ETS). The ETS reform slows the annual reduction of emission allowances, keeps a larger pool of free permits for industry and links those permits to verifiable decarbonisation investment plans. The Commission also proposes measures to accelerate electric‑vehicle uptake, expand heat‑pump deployment, upgrade grids and introduce vehicle‑to‑grid technology. Ursula von der Leyen said, “Europe must become the world’s first electro‑powered continent,” while the plan promises lower energy prices, enhanced competitiveness and greater energy security for EU businesses and citizens.