EU States Off Track for Hitting Climate and Clean Energy Goals

(Bloomberg) -- European Union governments must step up efforts to meet the bloc’s binding goal of reducing emissions by at least 55% this decade, by accelerating the phase-out of fossil fuels and boosting the competitiveness of the clean energy sector in the region.

Current measures in energy and climate plans drafted by the EU states would lead to a 51% cut in greenhouse gases, with members lagging behind on renewables deployments and energy savings, according to an assessment published by the European Commission on Monday. The 2030 goal is part of the EU’s ambitious strategy to lead the global fight against climate change and zero out emissions by the middle of the century.

“It is clear we need stronger commitments in the final plans to put us firmly on the right track to climate neutrality, build resilience to climate impacts and to capitalize on the gains that come from the climate and energy transition,” EU Climate Commissioner Wopke Hoekstra said in a statement.

The EU’s unprecedented clean shift comes as the 27-nation bloc is grappling with an energy crisis following a cut in gas supplies by Russia amid its invasion of Ukraine. At the same, increasing competition from the US and China is putting clean energy value chains in Europe under pressure, sparking calls from businesses for more funding.

The assessment of 21 national plans showed that current measures would boost the share of renewables in Europe’s energy mix to between 38.6% and 39.3%, short of the 42.5% goal. They would also increase energy savings by 5.8% compared with the 11.7% target. The report excludes Austria, Bulgaria and Poland, who haven’t submitted their plans yet, and Belgium, Ireland and Latvia, whose drafts were received recently and will be assessed in early 2024.

The commission urged member states to do more to phase out fossil fuels in energy generation and give up on subsidies for dirty energy sources in sectors such as transport. It also called on governments to improve their plans on diversifying their energy supplies.

While the share of Russian gas in EU imports fell to 15% during the first 10 months of this year from about 45% in 2021, only some nations provided detailed plans for access to other gas or low-carbon energy sources. 

“Going forward, the demand side of the electricity sector and energy storage are insufficiently covered despite the growing importance of flexibility,” the Commission said. “Few member states have set out how they plan for the gradual decline in oil use and its implications for energy security and oil infrastructure.”

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