The European Union plans to propose an electrification goal for 2040 as part of a strategy to boost clean technology markets and reduce reliance on fossil fuels. The European Commission will unveil the target in a policy plan on July 17, with plans to embed it into law by the fourth quarter of 2026 as part of a post-2030 energy framework, according to a draft document seen by Bloomberg News.
Electrification to Slash Fossil Fuel Imports
By accelerating electrification, Europe could replace two-thirds of its gas demand and halve oil consumption, lowering its fossil fuel import bill by 200 billion euros by the end of the next decade, the draft states. The push aims to strengthen energy security after the Russian invasion of Ukraine and Middle East crises disrupted supplies and sent prices to record levels.
“With decisive action at all levels, Europe can become the first electro-continent,” the commission said in the document. “This profound transformation will require investments and lead to savings and benefits well beyond the energy system.”
Current Electrification Rate Stagnant
The EU estimates that 70% of its power already comes from local clean sources, but the electrification rate has remained stagnant at 23% for a decade, compared to over 30% in China, Korea, and Japan, according to International Energy Agency data.
“Unlocking the electrification potential would support Europe’s strong clean tech manufacturing base and related value chains of wind turbines, battery electric vehicles or heat pumps and boost the number of qualified jobs significantly,” the EU said.
Actions to Drive Electrification
The plan outlines actions for sectors most dependent on fossil fuels. In industry, the commission aims to use carbon market-based funds to drive electrification. In transport, it will ensure better access to charging infrastructure, electrify heavy-duty vehicles, and encourage ports to become clean energy hubs.
The commission declined to comment, in line with its policy of not commenting on draft documents. The draft may still change before publication.
