The European Commission today released the State of the Energy Union Report 2025 along with the Climate Action Progress Report 2025, highlighting the European Union’s steady progress toward its 2030 climate and energy targets. The reports underscore the EU’s advances in expanding renewable energy, lowering greenhouse gas (GHG) emissions, stabilizing energy prices, and strengthening energy independence from imported fossil fuels.
According to the reports, the EU recorded a 2.5% reduction in GHG emissions in 2024 compared to 2023, confirming that the bloc remains on track to meet its 2030 target of cutting net emissions by at least 55% from 1990 levels. The data also shows that while emissions fell by 37.2% compared to 1990, the EU’s GDP grew by 71%, reinforcing the continued decoupling of economic growth from emissions.
The Commission noted that 47% of the EU’s electricity mix in 2024 came from renewables, with 77 GW of new renewable capacity installed last year. Final energy consumption declined by 3% compared to 2022, led by reductions in the residential, industrial, and service sectors. Despite these gains, the report stressed that achieving 2030 targets will require an accelerated rollout of renewable energy and greater energy efficiency improvements.
To enhance competitiveness and affordability, the Commission highlighted the progress of the Affordable Energy Action Plan and the Clean Industrial Deal, aimed at easing costs for consumers and industries. However, it acknowledged that energy prices in Europe remain higher than in competing markets. In response, the EU is implementing seven key measures to deliver sustained price relief, including initiatives by the European Investment Bank—a €1.5 billion bank guarantee program for grid component manufacturers and a €500 million pilot for clean power purchase agreements (PPAs).
The EU’s energy security has significantly strengthened, with Russian gas imports dropping from 45% in 2021 to 12% by August 2025. Between 2021 and 2023, renewable power generation from new solar PV and wind installations helped EU consumers save around €100 billion, while each 1% improvement in energy efficiency contributed to a 2.6% reduction in gas imports.
Looking ahead, the Commission emphasized that the next decade will be pivotal in completing the Energy Union and achieving climate neutrality by 2050. Negotiations are underway to amend the European Climate Law, setting a 90% GHG emissions reduction target by 2040. The EU aims to increase the share of electricity in final energy consumption from 23% to around 32% by 2034, supported by major investments in grid infrastructure, clean technologies, and energy efficiency.
The Commission estimates that achieving these objectives will require €695 billion in annual energy investments from 2031 to 2040. The proposed EU Multiannual Financial Framework (2028–2034) will focus on boosting cross-border infrastructure and financing strategic clean energy technologies. The upcoming revision of the Governance Regulation on the Energy Union and Climate Action is also expected to play a key role in shaping the post-2030 climate framework.
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