European energy and industrial sector trends

In the first eight months of 2026, Greece reported a 10.4% decrease in CO2 emissions from electricity generation, reaching 9.6 million tons. This decline was largely driven by the Crete interconnection project, which reduced emissions on non-interconnected islands by 45% by limiting oil usage. Despite this, natural gas and lignite remained significant contributors to emissions.

In the automotive sector, EU electric vehicle (EV) sales reached 1.64 million units between January and August 2026, a 45% year-on-year increase. EVs represented 22% of the total market, supported by an increase in affordable models as manufacturers expanded lineups to meet EU emission targets.

In the industrial sector, European crude steel production recovered by approximately 10 million tons following new EU trade measures implemented on July 1. This recovery is estimated to preserve up to 80,000 jobs. However, high natural gas prices, which exceeded 80 euros per megawatt-hour in September, have led to a potential resurgence in coal-fired electricity generation. Analysts suggest coal production could increase by up to 25% over the next six months as coal-fired plants become more profitable than gas-fired plants.