While the European energy transition is progressing, significant work remains. Fossil fuel prices are rising, climate targets need to be met, and the EU must boost its economic competitiveness. Well-functioning energy markets and sufficient interconnector capacity remain the fundamental prerequisites for raising capital to finance the transition. This paper seeks to address the financial and regulatory challenges of increasing electrification in Europe and to contribute to the ongoing dialogue around the EU’s energy transition and clean energy investment strategy. Our recommendations include:
1. Simplifying and harmonising sustainability legislation
2. Ensuring steadfast capital market access
3. Increasing the pool of de-risking instruments to lower barriers to investment
4. Enabling the energy transition through the EU budget
5. Reviewing the State aid framework to be fit for net zero and subsidy races