The European Commission will unveil a 2040 electrification target as part of a policy plan to strengthen the clean technology market and reduce reliance on fossil fuels, according to a draft document seen by Bloomberg News. The goal, expressed as a percentage share of energy consumption, aims to replace two-thirds of gas demand and halve oil consumption, lowering the fossil fuel import bill by €200 billion by the end of the next decade.
Policy Plan and Legislative Timeline
The commission is scheduled to publish the policy plan on July 17, with the target to be embedded into law as part of a post-2030 energy framework proposal in the fourth quarter of 2026. The electrification goal will be defined as a specific percentage of energy consumption by 2040, though the exact figure has yet to be determined.
“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, from clean tech manufacturers to the installation sector, from more and modern competitive industries to emissions and pollution reduction in European cities.”
Energy Security and Climate Goals
The push for electrification is driven by the need to enhance energy security and meet climate targets. The EU aims to reduce emissions by 90% by 2040 from 1990 levels. Reducing reliance on energy imports has become a priority after Russian gas supply cuts following the invasion of Ukraine and disruptions from the Middle East crisis sent prices to record levels.
By accelerating electrification, Europe could lower its fossil fuel import bill by €200 billion, according to the draft, which may still change before publication. This could also help lower high energy prices that undermine Europe's competitiveness compared to the United States and China.
Current Electrification Stagnation
The EU estimates that 70% of its power already comes from local clean sources, with gains in energy efficiency. However, the electrification rate—the share of electricity in final energy consumption—has stagnated at 23% for a decade, compared to over 30% in China, South 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 intends to use carbon market-based funds to drive electrification. In transport, it aims to improve access to charging infrastructure, electrify heavy-duty vehicles, and encourage ports to become clean energy hubs. The commission declined to comment on the draft, in line with its policy of not commenting on draft documents.
