Projections for 2026 are modest, with Climate Scorecard predicting an annual 2% reduction for the next few years. This would put the bloc just short of its legally binding targets for 2030, based on current progress.

Clean energy has grown exponentially across the bloc, accounting for 25% of final energy consumption in 2024, and 47% of the power sector. However, the EU has increased its US liquefied natural gas (LNG) imports, leading to increased price volatility that has been compounded by the Iran war.

Investment in carbon-intensive sectors, clean tech and manufacturing is short of required levels. In 2023, investments reached €498bn compared to the €842bn needed on average to meet 2030 goals, according to the Institute for Climate Economics.

The EU’s approach to green job creation is “on track”, with 1.5 million workers reskilled or upskilled through the European Skills Agenda in 2023.

The outlook on the EU’s climate policy progress hinges on whether legislation can protect industries from volatile energy costs without weakening approaches to key frameworks.

Read on to find out the latest updates to the EU’s climate and energy policy frameworks.