The European Commission’s recent Communication on Europe’s 2040 climate targets sets an ambitious goal for the reduction of greenhouse gas emissions. The Electrification Alliance welcomes that it positions clean electrification as “the main driver of the energy transition”. The Commission forecasts that the electrification rate will more than double by 2040, which will allow the EU’s final energy consumption to decrease by 30% compared to today.

The EU must set the right milestones to deliver that trajectory. This means setting the European economy onto an electrification track with a dedicated Electrification Action Plan – setting an intermediary target of at least 35% for 2030.

However, we express concerns regarding the Communication’s over-reliance on largely unproven and costly technologies. The Commission’s stance sends mixed signals to all stakeholders who must plan ahead in terms of investments, workforce and assets, ultimately hindering our collective progress towards climate objectives.

Moreover, the need to phase-out fossil fuels and their subsidies remains understated. At the same time, allocating sufficient funds towards direct electrification is not only a matter of environmental urgency, it is also an economic imperative for a just transition.

Direct electrification stands out as the “no-regret” solution for the full decarbonisation of the European economy. It features proven, market-ready technologies that offer the most cost-effective and resource-efficient pathway to decarbonisation.

Getting direct electrification in  the driver’s seat requires clear policies, backed with increased financial effort from both Member States and the EU. This support should prioritise the deployment of homegrown clean energy sources and technologies, such as solar, wind, heat pumps, and e-mobility, coupled with smart functionalities and services for their full potential to be realised. Significant investments must be made to expand and modernise the electricity grid infrastructure at both transmission and distribution levels as well as enhancing system reliability, demand-side flexibility and storage capacity across the value chain.

Consequently, policymakers must ensure that they quickly complete negotiations on the Energy Taxation Directive, as current legislation still allows for lower taxes on fossil fuels compared to clean electricity for households. Additionally, it is imperative that there are no further delays in publishing the Heat Pump Action Plan.

Consistent with the objectives set for 2040, we urge the Commission to develop and release an Electrification Action Plan within the first 100 days of its new tenure. Such a plan will provide the clear signal needed by public authorities, investors and consumers, facilitating a smooth transition in a fair, cost effective and competitive way. We welcome the Commission’s commitment to set a firmer European agenda for sustainable industry that will attract investment in Europe.

European policymakers must now prioritise scalable, no-regret electrified solutions that empower both citizens and industries to reduce their emissions, while simultaneously decreasing energy consumption and costs, thereby enhancing Europe’s competitiveness and market resilience . A clear orientation is a must, coupled with the swift implementation of agreed policies under the Fit for 55 package and the Clean Energy Package.