EXECUTIVE SUMMARY
The EU’s competitiveness, energy security and decarbonisation goals go hand in hand and require a near-total decarbonisation of our energy system by 2050. The Union’s energy and climate architecture must keep up accordingly. This paper presents Eurelectric’s initial perspective on the post-2030 enabling framework, without hindering implementation of the current rules to reach our 2030 targets.
5 Core Elements of the Post-2030 Energy and Climate Architecture
- Greenhouse gas reduction: support the 2040 target & carbon pricing – The EU’s -90% GHG reduction target backed by strong governance and a predictable EU ETS is essential to drive clean investment and maintain Europe’s climate and industrial leadership.
- Competitiveness: balance climate efforts and cost efficiency & ensure effective price signals – Europe’s geoeconomic and reindustrialisation priorities require climate policy that drives cost‑effective decarbonisation while safeguarding effective price signals through marginal pricing and the EU ETS. Short‑term measures such as reduced taxes and levies and targeted State aid, alongside long‑term solutions including more clean domestic electricity, long‑term contracts, flexibility, storage and interconnectors can all help bring down energy bills.
- Security of supply: enable security of supply with grids, storage & firm capacity – Europe must modernise grids and scale storage, flexibility and (increasingly clean) firm capacity to ensure reliable system operation as renewables expand.
- Powering demand through electrification – Clean electrification must become a core driver of Europe’s economic growth and energy system, anchored by an indicative electrification KPI (~35% by 2030, ~50% by 2040) to guide investment in grids, clean generation and flexibility. Delivering this requires an ambitious enabling framework and robust funding, with electrified end‑uses also bringing major energy‑efficiency gains that strengthen competitiveness and security.
- Technology inclusivity: ensure predictability for investors of all technologies in scope – Eurelectric proposes a clean power target at EU level. As a preliminary comment, Eurelectric proposes to define this target as follows: Member States shall collectively ensure that the share of energy from clean power sources in the Union’s gross final consumption of energy in 2040 is at least X%. Clean power generation should be defined with a CO2/MWh threshold.[1]
An Enabling Policy Framework Fit for the Electric Age
Europe’s clean power goals cannot be met by targets alone – they require a coherent, fully implemented policy framework that accelerates clean investment, modernises infrastructure and strengthens system resilience. The electricity sector is ready to deliver, but only if three essential enabling conditions are in place:
- More stability: a predictable framework to drive clean investment – Unlocking the sector’s trillions in clean investment hinges on a stable, predictable framework that reduces risks and speeds up deployment. This means climate credibility, a predictable ETS, a stable market design, rapid permitting, electrification incentives and flexible, predictable State aid.
- More system integration: building a smart, integrated and flexible energy system – Rapid grid expansion, digitalisation, interconnectors, flexibility and better planning, all with increased focus on the distribution level, are essential as electricity becomes a dominant energy carrier.
- More security: powering Europe with resilience, sovereignty and reliability – An updated approach to energy security by reinforcing essential grid services, strengthening cyber-, climate- and physical resilience, and building diversified supply chains.
An Updated Governance Framework
The post‑2030 Governance framework must anchor the EU’s climate and energy architecture in simple, robust planning, transparent monitoring and credible delivery, ensuring the Union can collectively meet its 2040 climate and energy ambitions and remain on track for climate neutrality by 2050.
To this end, NECPs should become actionable plans that give clear, long-term indications of expected investment needs and public and private funding opportunities. They should embed electrification as a core driver of decarbonisation and competitiveness and strengthen the grid perspective by aligning with transmission and distribution planning and anticipatory investment requirements. To ensure clarity and trust, NECPs must also adopt a harmonised, streamlined structure with a standardised set of non-binding indicators and accessible, digital reporting. Enhanced participation, transparency and accountability with stronger monitoring and regular updates will be essential to deliver Europe’s post‑2030 energy and climate objectives.
[1] Eurelectric members from AT, DE, DK, IT, NO and PT consider that a renewable energy target for 2040 would be preferrable.