Questions and answers on the State of the Energy Union 2025 and on the Climate Action Progress Report 2025

How is the EU progressing towards its 2030 climate and energy targets? 

Greenhouse gas emissions in the EU continue to decline. The EU aims to cut greenhouse gas emissions by at least 55% (compared to 1990 levels) by 2030. Provisional data for 2024 show that total net greenhouse gas emissions, including LULUCF and international maritime and aviation emissions, decreased by 2.5% compared to 2023. Projections from March 2025 foresee a gap of around 1 percentage point to reaching the EU's 2030 target, provided existing and planned policy measures are fully implemented across the board.

In 2023, the EU achieved 24.6% renewable energy in gross final energy consumption, up 1.5% from 2022. Progress varies widely across the EU from Sweden at 66% of renewables in their energy mix, to Luxembourg, Belgium, Malta, and Ireland at under 16%.

Every 1% of improvement in energy efficiency cuts EU gas imports by 2.6%, meaning that energy efficiency plays a decisive role in increasing the EU's energy security, lowering energy prices and lowering fossil fuel import bills by around 25%. Moreover, the implementation of energy efficiency measures, including updates to energy labelling and ecodesign regulations, led to estimated savings of around €120 billion on energy bills in 2023.

Member States' National Energy & Climate Plans (NECPs) show that primary energy consumption in the EU decreased by 4.1% from 2022 to 2023, but is still 22% above the EU's 2030 target. Final energy consumption fell by 3.0% from 2022 to 2023, 17% above the 2030 target. Hence, more work is needed. For example, energy-efficient renovations should be stepped up, as should decarbonisation and electrification of heating systems.

How has the EU enhanced its energy security and delivered on its objectives to reduce Russian fossil fuels dependency?

Thanks to EU coordinated action and cooperation with international partners, EU's gas imports from Russia have gone down from 45% in 2021 to 19% in 2024 and 12% until August 2025. Russian oil imports have also shrunk from 27% at the beginning of 2022 to 3% in the first half of 2025, while Russian coal imports have been completely phased out. With a view to phasing out these remaining volumes, the Commission presented a Roadmap towards ending Russian energy imports, with a first legislative proposal in June, now under negotiation by the EU co-legislators.

The implementation of the REPowerEU Plan has significantly contributed to reducing gas demand. The energy transition and the implementation of the actions foreseen in this year's Action Plan for Affordable Energy are expected to replace up to 100bcm of natural gas by 2030. This corresponds to saving the EU more than 15bcm of gas per year, or a reduction in gas demand by 40-50bcm by 2027⁷.The consumption of natural gas by 2040 is expected to fall by more than 70% compared to 2021 [80% compared to 2021] - mainly due to improved energy performances of the building stock and to fuel switching towards mainly electricity, e.g. in the building sector and electricity in the industrial sector

Member States allocated roughly one fifth more public funds to fossil fuel subsidies in 2024 (+18%) than in 2021 (pre-crisis year), however this was 34% lower than in 2023 and 49% down compared to 2022. The report notes that the continued dependence on imported fuels poses a significant risk to the EU's energy security and resilience[1] and it constitutes a drag on competitiveness by distorting incentives to invest in energy transition.

In terms of security of supply, gas storage levels are at 83% of capacity, showing that we are on track to meet our targets. his year's revision to the gas storage regulation provides additional flexibility to Member States to avoid excessive prices and market distortions.

How has the EU helped alleviate high energy costs so far?

The Action Plan for Affordable Energy presented actions to lower energy bills in the short term while aiming at more structural measures to modernise Europe's energy system. The EU has made progress on many of such actions, which are starting to show impact on the ground.

Here are some key actions undertaken so far in the mandate:

• Energy Union Task Force: Launched this summer, this forum provides further political impulse and will help to expedite decision-making on the crucial topics hindering the complete integration of EU's energy market, such as accelerating grid development, interlinking Europe and ensuring the security of energy infrastructure, as well as bringing down energy prices. 
• Sectoral tripartite contracts: By bringing together the public sector, energy producers and energy-consuming industries, such contracts will create a collaborative, more favourable investment climate, facilitate a competitive EU industrial sector, while ensuring the retention and creation of quality jobs. Work on the first two contracts for offshore wind and grids and for storage has started.
• Guidance on renewables, grids infrastructure and network tariffs: In July, the Commission published one recommendation and 3 guidance documents to support the implementation of to support implementation of the Affordable Energy Action Plan, bring down energy system costs and support Member States in managing the transition,
• State aid framework revision: In June, the Commission adopted a new State aid framework supporting the Clean Industrial Deal, making it easier for Member States to push forward the development of clean energy, industrial decarbonisation and clean technology.

Building on the Affordable Energy Action Plan,  Commissioner Jørgensen outlined in October a set of key actions to double down on existing efforts to lower energy prices and bring quick relief to industrial and households consumers.

This action will continue, as lowering energy prices remains a top priority for the Commission. Planned initiatives, most notably the upcoming Grids Package foreseen by the end of this year will further contribute complete the Energy Union and bring down energy costs.

What are the Commission's plans to complete the Energy Union?

The full implementation of current policy initiatives, such as the Affordable Energy Action Plan is already showing positive effects. The Commission is working on intensifying these efforts while at the same time laying a foundation for long-term transformation. Central to this ambition is the proposal to amend the European Climate Law with a 2040 target, currently under consideration by co-legislators. On 5 November, the Council has agreed on a general approach. The 2040 EU climate target, once agreed, will serve as a benchmark for the EU policy framework for the decade ahead.

To complete the Energy Union, it will be necessary to increase electrification in the final energy demand, continue scaling up the efforts concerning energy efficiency, with a focus on the residential sector requiring up to EUR 241 billion annually, and advance in innovative digital solutions and AI.

Overall, to meet its energy and climate targets, the Commission estimates that the EU needs to mobilise over €695 billion annually from 2031 to 2040 for energy related investments such as in renewable energy, energy efficiency and grid capacity. A further factor will of course be how to optimise public and private investment. In this context, the report notes the proposal for an ambitious EU budget/Multiannual Financial Framework for 2028-2034, which suggests a fivefold increase of the Connecting Europe Facility and relies on National and Regional Partnership Plans and a European Competitiveness Fund, aims to reinforce cross-border infrastructure and to channel funding in strategic technologies, including those that are key for the clean transition. Other innovative financial instruments will also be key to supporting progress.

The upcoming revision of the Governance Regulation as part of the post-2030 framework will offer an opportunity to, inter alia, transform National and Energy Climate Plans into credible investment strategies that steer reforms and effectively channel funding towards the clean transition, and simplify policy planning, processes and reporting while strengthening EU steer towards climate neutrality.

What are the main takeaways from the 2025 Climate Action Progress Report?

EU greenhouse gas emissions fell by an estimated 2.5% in 2024, continuing the downward trend seen in previous years. This means the EU is on track to achieve its 2030 emission reduction target of a 55% decrease compared to 1990.

The report confirms that the EU has continued to decouple emissions from economic growth, with GDP growing slightly in 2024 while emissions declined. The main reductions came from the power and industrial sectors, helped by a rapid expansion of renewables, improved energy efficiency and continued transition away from coal and gas. However, emissions from transport increased and those from buildings remained relatively stable, underlining the importance of forthcoming ETS2 to accelerate progress in these sectors.

Which sectors and policies have driven emissions reductions in 2024? 

The largest contribution to the 2024 decline came from the energy sector, where emissions dropped by around 8.5%, driven by record renewable generation, declining fossil fuel use, and high EU ETS carbon prices reinforcing the shift away from coal. Industrial emissions also decreased modestly, thanks to improved energy efficiency and lower production in some energy-intensive sectors. By contrast, emissions under the Effort Sharing Regulation, covering buildings, transport, agriculture and small industry, remained fairly stable overall, with small reductions in buildings offset by increases in road transport.

Is the EU resilient enough to face the impacts of climate change?

Climate hazards are undermining Europe's competitiveness, security and prosperity. Climate resilience should urgently become an integral part of all European policies. This is why the Commission is preparing an integrated EU framework for climate resilience, to be proposed in 2026. One important principle is resilience by design. It means all investment vulnerable or exposed to climate impacts must be designed to face and withstand climate risks that could materialise in their lifetime, without unacceptable loss of their value or utility.

For More Information

Press Release

Climate Action Progress Report 2025