View source for Energy policy of the European Union

{{short description|Legislation in the area of energetics in the European Union}}
{{Use British English|date=March 2013}}
{{Use dmy dates|date=October 2020}}
<noinclude>{{Pie chart
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| caption =European Union total primary energy consumption by fuel in 2017<ref>{{cite web|url=https://www.bp.com/content/dam/bp/en/corporate/pdf/energy-economics/statistical-review/bp-stats-review-2018-full-report.pdf|title=Statistical Review of World Energy (June 2018)|website=bp.com}}</ref>
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| label4 =Nuclear
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{{Politics of the European Union}}</noinclude>
The '''energy policy of the European Union''' focuses on [[energy security]], [[Sustainable energy|sustainability]], and integrating the energy markets of member states.<ref>{{Cite web |last=Ciucci |first=Matteo |date=September 2022 |title=Energy policy: general principles {{!}} Fact Sheets on the European Union |url=https://www.europarl.europa.eu/factsheets/en/sheet/68/energy-policy-general-principles |access-date=2023-04-01 |website=European Parliament |language=en}}</ref> An increasingly important part of it is climate policy.<ref>{{Cite book | last1=Rayner |first1=Tim |last2=Szulecki |first2=Kacper|last3=Jordan |first3=Andrew J.|last4=Oberthür|first4=Sebastian|date= 2023 |title=Handbook on European Union Climate Change Policy and Politics (open access)|chapter=Handbook on European Union Climate Change Policy and Politics |publisher=Edward Elgar |isbn=978-1-78990-698-1 |url=https://www.elgaronline.com/edcollbook-oa/book/9781789906981/9781789906981.xml?rskey=R8UdLI&result=2|access-date=20 July 2023|language=en}}</ref> A key [[energy policy]] adopted in 2009 is the [[Directive 2009/28/EC|20/20/20 objectives]], binding for all EU Member States. The target involved increasing the share of renewable energy in its final energy use to 20%, reduce greenhouse gases by 20% and increase energy efficiency by 20%.<ref>{{cite journal |last1=Obrecht |first1=Matevz |last2=Denac |first2=Matjaz |date=2013 |title=A sustainable energy policy for Slovenia : considering the potential of renewables and investment costs |journal=Journal of Renewable and Sustainable Energy |volume=5 |issue=3 |pages=032301 |doi=10.1063/1.4811283}}</ref> After this target was met, [[Fit for 55|new targets for 2030]] were set at a 55% reduction of greenhouse gas emissions by 2030 as part of the [[European Green Deal]].<ref name="EEA23" /><ref name=":2" /> After the [[Russian invasion of Ukraine]], the EU's energy policy turned more towards energy security in their [[REPowerEU]] policy package, which boosts both renewable deployment and fossil fuel infrastructure for alternative suppliers.<ref name=":3">{{Cite web |last=Goodman |first=Joe |date=2022-05-20 |title=In-depth Q&A: How the EU plans to end its reliance on Russian fossil fuels |url=https://www.carbonbrief.org/in-depth-qa-how-the-eu-plans-to-end-its-reliance-on-russian-fossil-fuels/ |access-date=2023-04-02 |website=Carbon Brief |language=en}}</ref>

The [[Treaty of Lisbon|EU Treaty of Lisbon]] of 2007 legally includes solidarity in matters of energy supply and changes to the energy policy within the EU. Prior to the Treaty of Lisbon, EU energy legislation has been based on the EU authority in the area of the common market and environment. However, in practice many policy competencies in relation to energy remain at national member state level, and progress in policy at European level requires voluntary cooperation by members states.<ref>{{cite web |last=Braun |first=Jan Frederik |date=24 February 2012 |title=EU Energy Policy under the Treaty of Lisbon Rules: Between a new policy and business as usual |url=http://www.ceps.eu/book/eu-energy-policy-under-treaty-lisbon-rules-between-new-policy-and-business-usual |access-date=21 August 2012 |work=Politics and Institutions, EPIN Working Papers |page=14}}</ref>

In 2007, the EU was importing 82% of its [[petroleum|oil]] and 57% of its [[natural gas|gas]], which then made it the world's leading importer of these [[fuels]].<ref>{{cite web
|url=https://www.nbcnews.com/id/wbna16560106
|title=Low-carbon economy' proposed for Europe
|agency= Associated Press
|date= 10 January 2007
|work=NBC News}}</ref> Only 3% of the [[uranium]] used in European nuclear reactors was [[Uranium mining|mined]] in Europe. Russia, Canada, Australia, Niger and Kazakhstan were the five largest suppliers of nuclear materials to the EU, supplying more than 75% of the total needs in 2009.<ref>{{cite web|url=http://ec.europa.eu/euratom/ar/last.pdf |title=ESA-AnnualReport2009-100908.indd |access-date=23 April 2011}}</ref> In 2015, the EU imports 53% of the energy it consumes.<ref name="europa.eu">{{Cite web|url=https://ec.europa.eu/commission/presscorner/home/en|title=Press corner|website=European Commission – European Commission}}</ref>

The [[European Investment Bank]] took part in energy financing in Europe in 2022: a part of their [[REPowerEU]] package was to assist up to €115 billion in energy investment through 2027, in addition to regular lending operation in the sector.<ref name=":5" /> In 2022, the EIB sponsored €17 billion in energy investments throughout the European Union.<ref>{{Cite web |title=Crisis threaten long-term investment and green transition |url=https://www.eib.org/en/stories/crisis-long-term-investment-green-growth |access-date=2023-05-17 |website=European Investment Bank |language=en}}</ref><ref>{{Cite web |title=Press corner |url=https://ec.europa.eu/commission/presscorner/home/en |access-date=2023-05-17 |website=European Commission - European Commission |language=en}}</ref>

The history of energy markets in Europe started with the [[European Coal and Steel Community]], which was created in 1951 to lessen hostilities between France and Germany by making them economically intertwined. The 1957 [[Treaty of Rome]] established the [[free movement of goods]], but three decades later, integration of energy markets had yet to take place.<ref name=":1">{{Cite book |last=Talus |first=Kim |url=http://www.oxfordscholarship.com/view/10.1093/acprof:oso/9780199686391.001.0001/acprof-9780199686391 |title=EU Energy Law and Policy: A Critical Account |date=2013-09-05 |publisher=Oxford University Press |isbn=978-0-19-968639-1 |pages=15–65 |chapter=The Regulatory History of EU Energy |doi=10.1093/acprof:oso/9780199686391.003.0002}}</ref> The start of an internal market for gas and electricity took place in the 1990s.<ref name=":4" />

== History ==

=== Early days ===
The history of [[energy market]]s in Europe started with the [[European Coal and Steel Community]], which was created in 1951 in the aftermath of [[World War II]] to lessen hostilities between France and Germany by making them economically intertwined. A second key moment was the formation in 1957 [[Euratom]], to collaborate on [[Nuclear power|nuclear energy]]. A year later, the [[Treaty of Rome]] established the [[free movement of goods]], which was intended to create a single market also for energy. However, three decades later, integration of energy markets had yet to take place.<ref name=":1" />

In the late 1980s, the [[European Commission]] proposed a set of policies (called [[Directive (European Union)|directives]] in the EU context) on integrating the European market. One of the key ideas was that consumers would be able to buy electricity from outside of their own country. This plan encountered opposition from the [[Council of Ministers (European Union)|Council of Ministers]], as the policy sought to liberalise what was regarded as a [[natural monopoly]]. The less controversial parts of the directives—those on price transparency and transit right for grid operators—were adopted in 1990.<ref>{{cite report|last=Dutton|first=Joseph|url=https://ukerc.rl.ac.uk/UCAT/PUBLICATIONS/EU_energy_policy_and_the_third_package.pdf|title=EU Energy Policy and the Third Package|date=2015|series=EPG Working Paper|volume=1505|institution=[[University of Exeter]] and [[UK Energy Research Centre]]|pages=2–3}}</ref>

=== Start of an internal market ===
The 1992 [[Treaty of Maastricht]], which founded the European Union, included no chapter specific on energy. Such a chapter had been rejected by [[member states]] who wanted to retain autonomy on energy, specifically those with larger [[energy reserve]]s. A directive for an internal [[electricity market]] was passed in 1996 by the [[European Parliament]], and another on the internal gas market two years later. The directive for the electricity market contained the requirement that [[Transmission system operator|network operation]] and [[energy generation]] should not done by a single (monopolistic) company. Having energy generation separate would allow for competition in that sector, whereas network operation would remain regulated.<ref name=":4">{{cite report|last=Dutton|first=Joseph|url=https://ukerc.rl.ac.uk/UCAT/PUBLICATIONS/EU_energy_policy_and_the_third_package.pdf|title=EU Energy Policy and the Third Package|date=2015|series=EPG Working Paper|volume=1505|institution=[[University of Exeter]] and [[UK Energy Research Centre]]|pages=3–5}}</ref>

=== Renewable energy and the 20/20/20 target ===
[[File:EU-27 share of renewable energy vs 2020 target.png|thumb|290px|2020 and 2021 fulfillment of the 2009 [[Renewable Energy Directive (EU)|Renewable Energy Directive (RED)]]: Share of energy consumption from renewable sources for [[European Union|EU]] and [[European Economic Area|EEA]] countries compared to the targets for 2020. [[European Union|EU27]] plus United Kingdom pledged an average of 20 percent renewable energy for 2020, and EU27 reached 22 percent.<ref>{{Cite web |title=Share of energy consumption from renewable sources in Europe |url=https://www.eea.europa.eu/ims/share-of-energy-consumption-from |date=2022-10-26 |website=www.eea.europa.eu |language=en}}</ref>]]

In 2001, the [[Directive 2001/77/EC|first Renewable Energy Directive]] was passed, in the context of the 1997 [[Kyoto Protocol]] against [[climate change]]. It included a target of doubling the share of renewable energy in the EU's energy mix from 6% to 12% by 2010. The increase for the electricity sector was even higher, with a goal of 22%. Two years later [[Directive 2003/30/EC|a directive]] was passed which increased the share of biofuels in transport.<ref name=":Talus192">{{Cite book |last=Talus |first=Kim |url=http://www.oxfordscholarship.com/view/10.1093/acprof:oso/9780199686391.001.0001/acprof-9780199686391 |title=EU Energy Law and Policy: A Critical Account |date=2013-09-05 |publisher=Oxford University Press |isbn=978-0-19-968639-1 |page=192 |chapter=Environment and Energy |doi=10.1093/acprof:oso/9780199686391.003.0002}}</ref>

These directives were replaced in 2009 with the [[Directive 2009/28/EC|20-20-20 targets]], which sought to increase the share of renewables to 20% by 2020. Additionally, [[greenhouse gas emissions]] needed to drop by 20% compared to 1990, and [[Energy conservation|energy efficiency]] improved by 20%.<ref name="EEA23">{{Cite web |title=EU achieves 20-20-20 climate targets, 55 % emissions cut by 2030 reachable with more efforts and policies |url=https://www.eea.europa.eu/highlights/eu-achieves-20-20-20 |access-date=2023-04-02 |website=[[European Environmental Agency]] |language=en|date=9 February 2023}}</ref> In included mandatory targets for each member state, which differed by member state.<ref name=":Talus192/3">{{Cite book |last=Talus |first=Kim |url=http://www.oxfordscholarship.com/view/10.1093/acprof:oso/9780199686391.001.0001/acprof-9780199686391 |title=EU Energy Law and Policy: A Critical Account |date=2013-09-05 |publisher=Oxford University Press |isbn=978-0-19-968639-1 |pages=192–193 |chapter=Environment and Energy |doi=10.1093/acprof:oso/9780199686391.003.0002}}</ref> While not all national government reached their targets, overall, the EU surpassed the three targets. Greenhouse gas emissions were 34% lower in 2020 than in 1990 for instance.<ref name="EEA23" />

=== Energy Union ===
The '''Energy Union''' Strategy is a project<ref>{{cite web|url=http://ec.europa.eu/priorities/energy-union/docs/energyunion_en.pdf|title=Energy Union and Climate}}</ref><ref name="auto">{{Cite web |title=European Commission |url=https://ec.europa.eu/info/splash_en |website=European Commission – European Commission}}</ref> of the [[European Commission]] to coordinate the transformation of European energy supply. It was launched in February 2015, with the aim of providing secure, sustainable, competitive, affordable energy.<ref>{{cite web|url=https://eur-lex.europa.eu/resource.html?uri=cellar:e27fdb4d-bdce-11e4-bbe1-01aa75ed71a1.0003.03/DOC_1&format=PDF|title=ENERGY UNION PACKAGE COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL The Paris Protocol – A blueprint for tackling global climate change beyond 2020 - (SWD(2015) 17 final)|date=25 February 2015|publisher=European Commission}}</ref>

[[Donald Tusk]], President of the [[European Council]], introduced the idea of an energy union when he was Prime Minister of Poland. Eurocommissioner Vice President [[Maroš Šefčovič]] called the Energy Union the biggest energy project since the [[European Coal and Steel Community]].<ref>{{cite web|url=http://www.euractiv.com/sections/energy/will-eu-states-play-ball-energy-union-312419|title=Will EU states play ball on Energy Union?|work=EurActiv – EU News & policy debates, across languages|date=25 February 2015 }}</ref> The [[Russia in the European energy sector|EU's reliance on Russia]] for its energy, and the [[Annexation of Crimea by the Russian Federation|annexation of Crimea by Russia]] have been cited as strong reasons for the importance of this policy.

The European Council concluded on 19{{nbsp}}March 2015 that the EU is committed to building an Energy Union with a forward-looking climate policy on the basis of the commission's framework strategy, with five priority dimensions:
* Energy security, solidarity and trust
* A fully integrated European [[energy market]]
* Energy efficiency contributing to moderation of demand
* Decarbonising the economy
* Research, innovation and competitiveness.<ref name="europa.eu" /><ref>{{Cite web|url=https://www.consilium.europa.eu/en/press/|title=Press|website=www.consilium.europa.eu}}</ref>
The strategy includes a minimum 10% electricity interconnection target for all member states by 2020, which the Commission hopes will put downward pressure onto energy prices, reduce the need to build new power plants, reduce the risk of black-outs or other forms of [[electrical grid]] [[instability]], improve the reliability of [[renewable energy]] supply, and encourage [[market (economics)|market]] [[Economic integration|integration]].<ref>{{cite web|url=https://eur-lex.europa.eu/resource.html?uri=cellar:a5bfdc21-bdd7-11e4-bbe1-01aa75ed71a1.0003.01/DOC_1&format=PDF|title=ENERGY UNION PACKAGE COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL - Achieving the 10% electricity interconnection target Making Europe's electricity grid fit for 2020|publisher=European Commission|date=25 February 2015}}</ref><!-- Has it been met? -->

EU Member States agreed 25 January 2018 on the commission's proposal to invest €873 million in clean energy infrastructure.<ref>{{cite web|url=http://europa.eu/rapid/press-release_IP-18-383_en.htm|title=European Commission – PRESS RELEASES – Press release – More growth and jobs: EU invests €873 million in clean energy infrastructure|website=europa.eu}}</ref> The projects are financed by CEF (Connecting Europe Facility).<ref>{{cite web|url=https://ec.europa.eu/inea/en/connecting-europe-facility/cef-energy|title=CEF Energy – Innovation and Networks Executive Agency – European Commission|website=Innovation and Networks Executive Agency|date=26 March 2015 }}</ref>
* €578 million for the construction of the ''Biscay Gulf France-Spain interconnection'', a 280&nbsp;km long off-shore section and a French underground land section. This new link will increase the interconnection capacity between both countries from 2.8 GW to 5 GW.<ref>{{cite web|url=http://www.4coffshore.com/windfarms/interconnector-biscay-gulf-icid152.html|title=Biscay Gulf Interconnector – 4C Offshore|website=www.4coffshore.com}}</ref>
* €70 million to construct the ''SüdOstLink'', 580&nbsp;km of high-voltage cables laid fully underground. The power line will create an urgently needed link between the wind power generated in the north and the consumption centres in the south of Germany.
* €101 million for the ''CyprusGas2EU'' project to provide natural gas to Cyprus

=== European Green Deal ===
The [[European Green Deal]], approved in 2020, is a set of policy initiatives by the [[European Commission]] with the overarching aim of making the [[European Union]] (EU) climate neutral in 2050.<ref>{{Cite web |last1=Tamma |first1=Paola |last2=Schaart |first2=Eline |last3=Gurzu |first3=Anca |date=2019-12-11 |title=Europe's Green Deal plan unveiled |url=https://www.politico.eu/article/the-commissions-green-deal-plan-unveiled/ |access-date=2019-12-29 |website=POLITICO}}</ref><ref name=":Euractiv2019">{{Cite web |last=Simon |first=Frédéric |date=2019-12-11 |title=EU Commission unveils 'European Green Deal': The key points |url=https://www.euractiv.com/section/energy-environment/news/eu-commission-unveils-european-green-deal-the-key-points/ |access-date=2019-12-29 |website=www.euractiv.com |language=en-GB}}</ref> The plan is to review each existing law on its climate merits, and also introduce new legislation on the [[circular economy]], [[building renovation]], farming and [[innovation]].<ref name=":Euractiv2019" />

The president of the European Commission, [[Ursula von der Leyen]], stated that the European Green Deal would be Europe's "man on the moon moment".<ref name=":Euractiv2019" /> Von der Leyen appointed [[Frans Timmermans]] as Executive Vice President of the European Commission for the European Green Deal. On 13 December 2019, the [[European Council]] decided to press ahead with the plan, with an opt-out for [[Poland]].<ref>{{Cite news |last=Rankin |first=Jennifer |date=2019-12-13 |title=European Green Deal to press ahead despite Polish targets opt-out |language=en-GB |work=The Guardian |url=https://www.theguardian.com/environment/2019/dec/13/european-green-deal-to-press-ahead-despite-polish-targets-opt-out |access-date=2019-12-29 |issn=0261-3077}}</ref> On 15 January 2020, the [[European Parliament]] voted to support the deal as well, with requests for higher ambition.<ref>{{Cite web |last=Benakis |first=Theodoros |date=2020-01-15 |title=Parliament supports European Green Deal |url=https://www.europeaninterest.eu/article/parliament-supports-european-green-deal/ |access-date=2020-01-20 |website=European Interest |language=en-US}}</ref> A year later, the [[European Climate Law]] was passed, which legislated that greenhouse gas emissions should be 55% lower in 2030 compared to 1990. The [[Fit for 55]] package is a large set of proposed legislation detailing how the European Union plans to reach this target, including major proposal for energy sectors such as renewable energy and transport.<ref name=":2">{{Cite report |url=https://www.lse.ac.uk/granthaminstitute/wp-content/uploads/2023/03/Climate-change-law-in-Europe-what-do-new-EU-climate-laws-mean-for-the-courts.pdf |title=Climate change law in Europe: What do new EU climate laws mean for the courts? |last1=Higham |first1=Catherine |last2=Setzer |first2=Joana |date=March 2023 |publisher=[[Grantham Research Institute on Climate Change and the Environment]] |page=3 |last3=Narulla |first3=Harj |last4=Bradeen |first4=Emily |access-date=2 April 2023}}</ref>

After the [[Russian invasion of Ukraine]], the EU launched [[REPowerEU]] to quickly reduce import dependency on Russia for oil and gas. While the policy proposal includes a substantial acceleration for renewable energy deployment, it also contains expansion of fossil fuel infrastructure from alternative suppliers.<ref name=":3" />

The impact of inflation, particularly driven by surging energy prices, prompted around 35% of firms to spend between 25% and 50% more on energy in 2024, further encouraging investments aimed at reducing energy consumption. This aligns with the goals of the Green Deal, where energy efficiency improvements are seen as key to reducing both emissions and energy costs. '''<ref>{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/20240244-economics-working-paper-2024-03 |title=EIB Working Paper 2024/03 - Investment decisions in a high-inflation environment |date=2024-08-26 |publisher=European Investment Bank |isbn=978-92-861-5802-5 |language=EN}}</ref>'''

==Earlier proposals==
The possible principles of Energy Policy for Europe were elaborated at the commission's [[green paper]] ''A European Strategy for Sustainable, Competitive and Secure Energy'' on 8 March 2006.<ref>{{Cite web|url=https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A52006DC0105|title=EUR-Lex – 52006DC0105 – EN – EUR-Lex|website=eur-lex.europa.eu}}</ref> As a result of the decision to develop a common energy policy, the first proposals, ''Energy for a Changing World'' were published by the [[European Commission]], following a consultation process, on 10 January 2007.

It is claimed that they will lead to a 'post-industrial revolution', or a [[low-carbon economy]], in the European Union, as well as increased competition in the energy markets, improved security of supply, and improved employment prospects. The commission's proposals were approved at a meeting of the [[European Council]] on 8 and 9 March 2007.<ref name=autogenerated1>{{Cite web|url=https://euobserver.com/economic/23665|title=EU sticks out neck in global climate change battle|website=EUobserver|date=9 March 2007 }}</ref>

Key proposals included:<ref name=policy>{{Cite web|url=https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A52007DC0001|title=Communication from the Commission to the European Council and the European Parliament - an energy policy for Europe, SEC(2007) 12|website=eur-lex.europa.eu|date=10 January 2007|access-date=3 June 2025}}</ref>
* A cut of at least 20% in [[greenhouse gas emissions]] from all [[primary energy]] sources by 2020 (compared to 1990 levels), while pushing for an international agreement to succeed the [[Kyoto Protocol]] aimed at achieving a 30% cut by all developed nations by 2020.
* A cut of up to 95% in carbon emissions from primary energy sources by 2050, compared to 1990 levels.
* A minimum target of 10% for the use of [[biofuel]]s by 2020.
* That the energy supply and generation activities of energy companies should be 'unbundled' from their distribution networks to further increase market competition.
* Improving energy relations with the EU's neighbours, including Russia.
* The development of a European Strategic Energy Technology Plan to develop technologies in areas including renewable energy, [[energy conservation]], [[low-energy building]]s, [[Generation IV reactor|fourth generation nuclear reactor]], [[coal pollution mitigation]], and [[carbon capture and sequestration]] (CCS).
* Developing an [[Africa]]-[[Europe]] Energy partnership, to help Africa 'leap-frog' to low-carbon technologies and to help develop the continent as a sustainable energy supplier.

Many underlying proposals are designed to limit global temperature changes to no more than 2&nbsp;°C above pre-industrial levels,<ref>[https://web.archive.org/web/20090902084721/http://2008.energyconferencebulgaria.eu/html/?go=press&p=detail&newsId=14 New EU energy plan – more security, less pollution], press release by European Commission</ref> of which 0.8&nbsp;°C has already taken place and another 0.5–0.7&nbsp;°C is already [[Climate commitment|committed]].<ref>Oliver Geden (2010), [http://swp-berlin.org/fileadmin/contents/products/comments/2010C19_gdn_ks.pdf What Comes After the Two-Degree Target?], SWP Comments 19</ref> 2&nbsp;°C is usually seen as the upper temperature limit to avoid '[[Global warming#Defining dangerous global warming|dangerous global warming]]'.<ref>{{Cite journal |doi = 10.1002/wcc.62|title = History of the 2&nbsp;°C climate target|journal = Wiley Interdisciplinary Reviews: Climate Change|volume = 1|issue = 4|pages = 598–605|year = 2010|last1 = Randalls|first1 = Samuel| s2cid=140660305 }}</ref> Due to only minor efforts in global [[Climate change mitigation]] it is highly likely that the world will not be able to reach this particular target. The EU might then not only be forced to accept a less ambitious global target. Because the planned emissions reductions in the European energy sector (95% by 2050) are derived directly from the 2&nbsp;°C target since 2007, the EU will have to revise its energy policy paradigm.<ref>Oliver Geden (2012), [http://www.swp-berlin.org/fileadmin/contents/products/research_papers/2012_RP01_lpt_prt.pdf#page=19 The End of Climate Policy as We Knew it], SWP Research Paper 2012/RP01</ref><ref>Oliver Geden (2012), [http://www.swp-berlin.org/fileadmin/contents/products/fachpublikationen/Paradigm_Shift_EU_Energy_Policy_01.pdf Impending Paradigm Shift. International Climate Negotiations and their Impact on EU Energy Policy], in: KAS International Reports, 9/2012, pp. 22–34</ref>

In 2014, negotiations about binding EU energy and climate targets until 2030 are set to start.<ref>Severin Fischer/Oliver Geden (2013), [http://library.fes.de/pdf-files/id/ipa/10060.pdf Updating the EU's Energy and Climate Policy. New Targets for the Post-2020 Period], FES International Policy Analysis</ref><ref>Oliver Geden/Severin Fischer (2014), [http://www.swp-berlin.org/fileadmin/contents/products/research_papers/2014_RP03_fis_gdn.pdf Moving Targets. Negotiations on the EU's Energy and Climate Policy Objectives for the Post-2020 Period and Implications for the German Energy Transition], SWP Research Paper 2014/RP03</ref>
European Parliament voted in February 2014 in favour of binding 2030 targets on renewables, emissions and energy efficiency: a 40% cut in greenhouse gases, compared with 1990 levels; at least 30% of energy to come from renewable sources; and a 40% improvement in energy efficiency.<ref>[https://www.theguardian.com/environment/2014/feb/05/european-parliament-votes-renewables-targets European parliament votes for stronger climate targets] The Guardian 5.2.2014</ref>

==Current policies==

===Energy sources===
[[File:20210125 Europe Power Sector - Renewables vs Fossil Fuels - Climate change.svg|thumb|upright=1.35| In 2020, renewables overtook fossil fuels as the European Union's main source of electricity for the first time.<ref name="EmberEUpower_20210125">{{cite web |title=The European Power Sector in 2020 / Up-to-Date Analysis on the Electricity Transition |url=https://ember-climate.org/wp-content/uploads/2021/01/Report-European-Power-Sector-in-2020.pdf |website=ember-climate.org |publisher=Ember and Agora Energiewende |archive-url=https://web.archive.org/web/20210125215659/https://ember-climate.org/wp-content/uploads/2021/01/Report-European-Power-Sector-in-2020.pdf |archive-date=25 January 2021 |date=25 January 2021 |url-status=live }}</ref>]]
[[File:Recommended fuel mix display format.gif|thumb|160px|left| A recommended [[Fuel mix disclosure]] display format, proposed in a note annexed to the [[Internal Market in Electricity Directive]]<ref>{{cite web|url=http://ec.europa.eu/energy/electricity/legislation/doc/notes_for_implementation_2004/labelling_en.pdf |title=Labelling provision in Directive 2003/54/EC |access-date=23 April 2011|url-status=dead|archive-url=https://web.archive.org/web/20140220093153/http://ec.europa.eu/energy/electricity/legislation/doc/notes_for_implementation_2004/labelling_en.pdf|archive-date=2014-02-20}}</ref>]]
{{multiple image
| align             = right
| direction         = horizontal
| total_width       = 350
| image1            = UK Home Performance Rating Charts-en.svg
| caption1          = [[Energy Performance Certificate|Home energy performance rating]] charts
| image2            = Energy label en.svg
| caption2          = Example [[European Union energy label|EU energy label]] for [[washing machine]]; similars are used for buildings and vehicles
}}

Under the requirements of the [[Directive on Electricity Production from Renewable Energy Sources]], which entered into force in October 2001, the member states are expected to meet "indicative" targets for [[renewable energy]] production. Although there is significant variation in national targets, the average is that 22% of electricity should be generated by renewables by 2010 (compared to 13,9% in 1997). The European Commission has proposed in its Renewable Energy Roadmap21 a binding target of increasing the level of renewable energy in the EU's overall mix from less than 7% today to 20% by 2020.<ref name="roadmap21">{{cite web | title=Communication from the Commission to the European Parliament and the Council: Renewable Energy Roadmap: Renewable Energies in the 21st century; building a sustainable future – COM(2006) 848 final|url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52006DC0848:EN:NOT| access-date=27 January 2007}}</ref>

Europe spent €406 billion in 2011 and €545 billion in 2012 on importing [[fossil fuels]]. This is around three times more than the cost of the [[European Financial Stability Facility#Greek bailout|Greek bailout]] up to 2013. In 2012, wind energy avoided €9.6 billion of fossil fuel costs. [[EWEA]] recommends binding renewable energy target to support in replacing fossil fuels with [[wind energy in Europe]] by providing a stable regulatory framework. In addition, it recommends setting a minimum emission performance standard for all new-build power installations.<ref>[http://www.ewea.org/fileadmin/files/library/publications/reports/Avoiding_fossil_fuel_costs.pdf Avoiding fossil fuel costs with wind energy] EWEA March 2014</ref>

For over a decade, the [[European Investment Bank]] has managed the European Local Energy Assistance (ELENA) facility on behalf of the European Commission, which provides technical assistance to any private or public entity in order to help prepare energy-efficient and renewable energy investments in buildings or innovative urban transportation projects.<ref name=":0">{{Cite book|last=Bank|first=European Investment|url=https://www.eib.org/en/publications/the-eib-group-climate-bank-roadmap|title=The EIB Group Climate Bank Roadmap 2021-2025|date=2020-12-14|publisher=European Investment Bank|isbn=978-92-861-4908-5|language=EN}}</ref><ref>{{Cite web|title=ELENA – European Local ENergy Assistance|url=https://www.eib.org/en/products/advising/elena/index.htm|access-date=2021-10-12|website=EIB.org|language=en}}</ref> The EU Modernisation Fund, formed in 2018 as part of the new EU Emissions Trading System (ETS) Directive and with direct engagement from the EIB12, targets such investments as well as energy efficiency and a fair transition across 10 Member States.

The [[European Investment Bank]] took part in energy financing in Europe in 2022: a part of their [[REPowerEU]] package was to assist up to €115 billion in energy investment through 2027, in addition to regular lending operation in the sector.<ref name=":5">{{Cite web |title=Davos 'polycrisis' means investment opportunity |url=https://www.eib.org/en/stories/polycrisis-investment-davos |access-date=2023-02-28 |website=European Investment Bank |language=en}}</ref> The European Investment Bank Group has invested about €134 billion in the energy sector of the European Union during the last ten years (2010-2020), in addition to extra funding for [[renewable energy]] projects in various countries. These initiatives are currently assisting Europe in surviving [[2021–2023 global energy crisis|the crisis brought on by the sudden interruption of Russian gas supply]].<ref>{{Cite journal |last=Bank |first=European Investment |date=2023-02-02 |title=Energy Overview 2023 |url=https://www.eib.org/en/publications/20220286-energy-overview-2023 |language=EN}}</ref>

As part of the REPowerEU Plan, the European Union has significantly decreased its reliance on Russian gas by reducing imports from 45 percent in 2021 to 15 percent in 2023, while also achieving a near 20 percent reduction in overall gas usage. By March 31, EU [[natural gas storage]] levels reached over 58 percent, the highest for this period, supported by regulatory measures that mandate storage facilities to maintain at least 90 percent capacity by November each year. These strategies are part of the EU's broader efforts to diversify energy sources and increase sustainability, aligning with investments in renewable energy and efficiency enhancements across member states.<ref>{{Cite web |title=EU Gas Storage Nearly 60 Percent Full at End of Heating Season |url=https://www.rigzone.com/news/eu_gas_storage_nearly_60_percent_full_at_end_of_heating_season-15-apr-2024-176403-article/ |access-date=2024-04-15 |website=www.rigzone.com |language=en}}</ref>

===Energy markets===
The EU promotes [[electricity liberalization|electricity market liberalisation]] and [[Energy security|security of supply]] through [[Internal Market in Electricity Directive|Directive 2019/944]]

The 2004 Gas Security Directive<ref>{{cite web|url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32004L0067:EN:NOT |title=Council Directive 2004/67/EC of 26 April 2004 concerning measures to safeguard security of natural gas supply |publisher=Eur-lex.europa.eu |access-date=23 April 2011}}</ref> has been intended to improve security of supply in the natural gas sector.

=== Energy efficiency ===
{{main|EU Energy Efficiency Directive 2012/27/EU}}Rising energy costs led to a 5.6 percentage point increase in planned investments in energy efficiency, largely driven by SMEs, increasing from 52.3% to 57.9% in 2022.'''<ref>{{Cite book |last=Bank |first=European Investment |url=https://www.eib.org/en/publications/20240244-economics-working-paper-2024-03 |title=EIB Working Paper 2024/03 - Investment decisions in a high-inflation environment |date=2024-08-26 |publisher=European Investment Bank |isbn=978-92-861-5802-5 |language=EN}}</ref>'''

=== Energy taxation ===
{{main|Energy Taxation Directive}}

=== IPEEC ===
{{main|International Partnership for Energy Efficiency Cooperation}}

At the [[33rd G8 summit|Heiligendamm Summit]] in June 2007, the [[G8]] acknowledged an EU proposal for an international initiative on energy efficiency tabled in March 2007, and agreed to explore, together with the International Energy Agency, the most effective means to promote energy efficiency internationally. A year later, on 8 June 2008, the G8 countries, China, India, South Korea and the European Community decided to establish the International Partnership for Energy Efficiency Cooperation, at the Energy Ministerial meeting hosted by Japan in the frame of the 2008 G8 Presidency, in Aomori.<ref>{{cite web|url=http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/08/380&format=HTML&aged=0&language=EN&guiLanguage=en |title=Rapid – Press Releases – EUROPA – The International Partnership for Energy Efficiency Cooperation (IPEEC) |publisher=Europa.eu |date=8 June 2008 |access-date=23 April 2011}}</ref>

===Buildings===
Buildings account for around 40% of EU energy requirements and have been the focus of several initiatives.<ref>[http://ec.europa.eu/energy/efficiency/buildings/buildings_en.htm Energy Efficiency in Buildings], European Commission, Directorate-General for Energy and Transport</ref> From 4 January 2006, the 2002 [[Directive on the energy performance of buildings]]<ref>{{cite web|url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32002L0091:EN:NOT |title=Directive 2002/91/EC of the European Parliament and of the Council of 16 December 2002 on the energy performance of buildings |publisher=Eur-lex.europa.eu |access-date=23 April 2011}}</ref> requires member states to ensure that new buildings, as well as large existing buildings undergoing refurbishment, meet certain minimum energy requirements. It also requires that all buildings should undergo 'energy certification' prior to sale, and that [[boiler]]s and [[air conditioning]] equipment should be regularly inspected.

As part of the EU's [[SAVE Programme]],<ref>[https://web.archive.org/web/20140817005356/http://www.ademe.fr/partenaires/odyssee/pdf/save2000.pdf For an Energy-Efficient Millennium: SAVE 2000], Directorate-General for Energy</ref> aimed at promoting energy efficiency and encouraging energy-saving behaviour, the Boiler Efficiency Directive<ref>{{cite web|url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31992L0042:EN:NOT |title=Council Directive 92/42/EEC of 21 May 1992 on efficiency requirements for new hot-water boilers fired with liquid or gaseous fuels |publisher=Eur-lex.europa.eu |access-date=23 April 2011}}</ref> specifies minimum levels of efficiency for [[boiler]]s fired with liquid or gaseous fuels. Originally, from June 2007, all homes (and other buildings) in the UK would have to undergo [[Energy performance certificate|Energy Performance Certification]] before they are sold or let,<ref>{{cite web|url=http://www.communities.gov.uk/index.asp?id=1002882&PressNoticeID=2174 |archive-url=http://webarchive.nationalarchives.gov.uk/20120919132719/http://www.communities.gov.uk/index.asp?id=1002882&PressNoticeID=2174 |url-status=dead |archive-date=2012-09-19 |title=[ARCHIVED CONTENT] DCLG News Release – Department for Communities and Local Government }}</ref> to meet the requirements of the [[Directive on the energy performance of buildings|European Energy Performance of Buildings Directive (Directive 2002/91/EC)]].<ref>[http://europa.eu/legislation_summaries/other/l27042_en.htm European Energy Performance of Buildings Directive (Directive 2002/91/EC)], Official Journal of the European Communities, published 02-12-16. Retrieved 2008-06-02.</ref>

===Transport===
EU policies include the voluntary [[ACEA agreement]], signed in 1998, to cut carbon dioxide emissions for new cars sold in Europe to an average of 140&nbsp;grams of {{CO2}}/km by 2008, a 25% cut from the 1995 level. Because the target was unlikely to be met, the European Commission published new proposals in February 2007, requiring a mandatory limit of 130&nbsp;grams of {{CO2}}/km for new cars by 2012, with 'complementary measures' being proposed to achieve the target of 120&nbsp;grams of {{CO2}}/km that had originally been expected.<ref>{{cite web|url=http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/155&format=HTML&aged=0&language=EN&guiLanguage=en |title=Commission plans legislative framework to ensure the EU meets its target for cutting CO2 emissions from cars |publisher=Europa.eu |access-date=23 April 2011}}</ref><ref>{{cite web|last=Bilefsky |first=Dan |url=https://www.nytimes.com/2007/02/06/world/europe/06iht-carbon.4494947.html |title=EU to compromise on auto emissions – Europe – International Herald Tribune |work=The New York Times |date=6 February 2007 |access-date=23 April 2011}}</ref>

In the area of fuels, the 2001 [[Directive on the Promotion of the use of biofuels and other renewable fuels for transport|Biofuels Directive]] requires that 5,75% of all transport fossil fuels (petrol and [[Diesel fuel|diesel]]) should be replaced by [[biofuels]] by 31 December 2010, with an intermediate target of 2% by the end of 2005. In February 2007 the European Commission proposed that, from 2011, suppliers will have to reduce [[carbon emissions]] per unit of energy by 1% a year from 2010 levels, to result in a cut of 10% by 2020 Stricter fuel standards to combat climate change and reduce air pollution.<ref name="europa.eu" />

====Flights====
{{Main|EU aviation fuel taxation}}

{{Further|Energy Taxation Directive|Aviation taxation and subsidies#European Union}}
Airlines can be charged for their greenhouse gas emissions on flights to and from Europe according to a court ruling in October 2011.<ref>{{cite web |author=Harvey |first=Fiona |author-link=Fiona Harvey |date=6 October 2011 |title=Airlines can be charged for carbon pollution, court rules |url=https://www.theguardian.com/environment/2011/oct/06/airlines-charged-carbon-pollution |work=the Guardian}}</ref>

Historically, EU aviation fuel was tax free and applied no VAT. Fuel taxation in the EU was banned in 2003 under the [[Energy Taxation Directive]], except for domestic flights and on intra-EU flights on the basis of bilateral agreements. No such agreements exist.<ref>[https://www.transportenvironment.org/sites/te/files/publications/2019_02_CE_Delft_Taxing_Aviation_Fuels_EU.pdf Taxing aviation fuels in the EU] Jasper Faber and Aoife O'Leary Delft November 2018</ref>

In 2018 Germany applied 19% VAT on domestic airline tickets. Many other member states had 0% VAT. Unlike air travel, VAT is applied to bus and rail, which creates [[Market distortion|economic distortions]], increasing demand for air travel relative to other forms of transport. This increases aviation emissions and constitutes a [[State aid (European Union)|state aid]] subsidy. Air fuel tax 33 cents/litre equal to road traffic would give €9.5 billion. Applying a 15% VAT in all air traffics within and from Europe would be equal to €15 billion.{{cn|date=June 2023}}

===Industry===
The [[European Union Emissions Trading Scheme]], introduced in 2005 under the 2003 Emission Trading Directive,<ref>{{cite web|url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32003L0087:EN:NOT |title=Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC |publisher=Eur-lex.europa.eu |access-date=23 April 2011}}</ref> sets member state-level caps on [[greenhouse gas emissions]] for power plants and other large point sources.

===Consumer goods===
A further area of energy policy has been in the area of consumer goods, where [[European Union energy label|energy labels]] were introduced to encourage consumers to purchase more energy-efficient appliances.<ref>{{cite web|url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32010L0030:EN:NOT |title=Directive 2010/30/EU of the European Parliament and of the Council of 19 May 2010 on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products |publisher=Eur-lex.europa.eu |access-date=23 April 2011}}</ref>

===External energy relations===
[[File:RF NG pipestoEU.gif|thumb|upright|left|Many EU members import oil and gas from Russia.]]
[[File:Who supplies Europe? The global concerns of EU energy imports.jpg|thumb|upright=1.2|Who supplies Europe? The global concerns of EU energy imports]]
Beyond the bounds of the European Union, EU energy policy has included negotiating and developing wider international agreements, such as the [[Energy Charter Treaty]], the [[Kyoto Protocol]], the post-Kyoto regime and a framework agreement on energy efficiency; extension of the EC energy regulatory framework or principles to neighbours ([[Energy Community]], [[Baku Initiative]], [[Euro-Mediterranean Partnership|Euro-Med]] energy cooperation) and the [[emission trading scheme]] to global partners; the promotion of research and the use of renewable energy.<ref name="external">[http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52006DC0590:EN:NOT External energy relations – from principles to action]. Communication from the Commission to the European Council COM(2006) 590 final</ref>

The EU-Russia energy cooperation will be based on a new comprehensive framework agreement within the post-[[Partnership and Cooperation Agreement]] (PCA), which will be negotiated in 2007. The energy cooperation with other third energy producer and transit countries is facilitated with different tools, such as the PCAs, the existing and foreseen Memorandums of Understanding on Energy Cooperation (with Ukraine, Azerbaijan, Kazakhstan and Algeria), the Association Agreements with Mediterranean countries, the [[European Neighbourhood Policy]] Action Plans; Euromed energy cooperation; the Baku initiative; and the EU-Norway energy dialogue.<ref name="external" /> For the cooperation with African countries, a comprehensive Africa-Europe Energy partnership would be launched at the highest level, with the integration of Europe's Energy and Development Policies.<ref name="policy" />
[[File:TAP TANAP SCP Schah Denis.png|thumb|upright=1.2|The [[Southern Gas Corridor]], which connects the giant [[Shah Deniz gas field]] in [[Azerbaijan]] to Europe]]
For ensuring efficient follow-up and coherence in pursuing the initiatives and processes, for sharing information in case of an external energy crisis, and for assisting the EU's early response and reactions in case of energy security threats, the network of energy correspondents in the Member States was established in early 2007. After the Russian-Ukrainian Gas Crisis of 2009 the EU decided that the existing external measures regarding gas supply security should be supplemented by internal provisions for emergency prevention and response, such as enhancing gas storage and network capacity or the development of the technical prerequisites for reverse flow in transit pipelines.<ref>[http://www.swp-berlin.org/fileadmin/contents/products/comments/2009C21_gdn_ks.pdf Effective Provisions for Emergency Prevention and Response in the Gas Sector]. German Institute for International and Security Affairs, Comment 21/2009</ref><ref>Oliver Geden/Jonas Graetz: [http://www.css.ethz.ch/publications/pdfs/CSSAnalyse159-EN.pdf The EU's Policy to Secure Gas Supplies.] Swiss Federal Institute of Technology (ETH) Zurich, CSS Analyses 159 (2014)</ref>
{{See also|Russia in the European energy sector}}

=== Just Transition Fund ===
Just Transition Fund (JTF) was created in 2020 to boost investments in [[Low-carbon power|low-carbon energy]]. The fund was criticized for blanket ban on low-carbon nuclear power but also introduction of a loophole for fossil gas.<ref>{{Cite web|last=Simon|first=Frédéric|date=2020-07-07|title=MEPs ban nuclear from green transition fund, leave loophole for gas|url=https://www.euractiv.com/section/energy/news/meps-ban-nuclear-from-green-transition-fund-leave-loophole-for-gas/|access-date=2020-07-07|website=www.euractiv.com|language=en-GB}}</ref> Having the largest workforce dedicated to the coal industry, Poland—followed by Germany and Romania—is the fund's largest receptor.<ref name="pass">{{Cite web|url=https://www.euractiv.com/section/energy-environment/news/eu-lawmakers-give-final-approval-to-blocs-green-transition-fund/|title=EU lawmakers give final approval to bloc's green transition fund|date=19 May 2021|website=[[euractiv.com]]}}</ref> Amounting to €17.5 billion, the fund was approved by the European Parliament in May 2021.<ref name="pass" />

=== Hydrogen economy ===
[[Green hydrogen]] is a significant component of the European Union's strategy to [[Energy transition|transition]] to sustainable energy and reduce [[Greenhouse gas emissions|carbon emissions]]. The [[European Commission]] has set a goal to produce 10 million tons of clean hydrogen annually within the EU by 2030. Additionally, the EU plans to import another 10 million tons per year from countries with cost-effective [[Renewable energy|renewable electricity]]. However, some experts estimate that actual production in the EU might reach around 1 million tons per year by 2030.<ref name=":6">{{Cite web |date=2024-06-12 |title=Green Hydrogen Execs Call for Pragmatism in Europe |url=https://www.energyintel.com/00000190-0c37-dddb-abf3-0f3f913b0000 |access-date=2024-06-13 |website=Energy Intelligence |language=en}}</ref>

The EU mandates the use of 3 million tons of hydrogen per year for the transport and maritime sectors. Challenges to achieving higher production levels include high costs and limited subsidies. In 2024, the European Hydrogen Bank announced a second auction with a budget of €1.2 billion, which is less than the initially proposed €3 billion. While there has been early interest, there is some hesitation regarding the signing of offtake contracts. Priority sectors for the use of green hydrogen include green steel production and ammonia. In contrast, sectors such as passenger road transport and [[Central heating|home heating]] are given lower priority. The cost of producing green hydrogen ranges from $6 to $15 per kilogram. A subsidy model similar to that of the United States, which offers $3 per kilogram, would require €3 billion annually to support the production of 1 million tons of green hydrogen. Strategic recommendations suggest prioritizing the use of renewable electricity for displacing coal, powering [[electric vehicle]]s, and operating [[heat pump]]s and green steel production before using it for green hydrogen production.<ref name=":6" />

== Solar anti-dumping levies ==
In 2013, a two-year investigation by the [[European Commission]] concluded that [[Solar power in China|Chinese solar panel exporters]] were selling their products in the EU up to 88% below market prices, backed by state subsidies. In response, the [[European Council]] imposed tariffs on solar imported from China at an average rate of 47.6% beginning 6 June that year.<ref>{{cite news|url=http://uk.reuters.com/article/uk-eu-china-court-trade-idUKKBN1671BT|archive-url=https://web.archive.org/web/20170228140307/http://uk.reuters.com/article/uk-eu-china-court-trade-idUKKBN1671BT|url-status=dead|archive-date=28 February 2017|title=EU wins court backing on anti-dumping duties on Chinese solar panels|first=Foo Yun|last=Chee|work=Reuters|date=28 February 2017}}</ref><ref>{{cite news|url=https://www.bbc.com/news/business-22766639|title=EU imposes China solar panel duties|work=BBC News|date=4 June 2013}}</ref>

The Commission reviewed these measures in December 2016 and proposed to extend them for two years until March 2019. However, in January 2017, 18 out of 28 EU member states voted in favour of shortening the extension period. In February 2017, the commission announced its intention to extend its anti-dumping measures for a reduced period of 18 months.<ref>{{cite web|url=http://pv.energytrend.com/news/EU_to_Shorten_Extension_on_Anti_Dumping_Duties_of_Chinese_Solar_Imports.html|title=EU to Shorten Extension on Anti-Dumping Duties of Chinese Solar Imports_EnergyTrend PV|website=pv.energytrend.com|access-date=7 July 2017|archive-url=https://web.archive.org/web/20170906000022/http://pv.energytrend.com/news/EU_to_Shorten_Extension_on_Anti_Dumping_Duties_of_Chinese_Solar_Imports.html|archive-date=6 September 2017|url-status=dead}}</ref><ref>{{cite web|url=http://www.businessinsider.com/r-eu-softens-proposal-on-extension-of-chinese-solar-panel-duties-2017-2|title=EU softens proposal on extension of Chinese solar panel duties|website=businessinsider.com}}</ref>

==Research and development==
The European Union is active in the areas of energy research, development and promotion, via initiatives such as [[CEPHEUS]] (ultra-low energy housing), and programs under the umbrella titles of SAVE (energy saving) [[ALTENER]] (new and renewable energy sources), STEER (transport) and [[COOPENER]] (developing countries).<ref>[http://ec.europa.eu/energy/intelligent/projects/ Projects], European Commission, Directorate-General for Energy and Transport</ref> Through [[Fusion for Energy]], the EU is participating in the [[ITER]] project.<ref>{{cite web|url=http://fusionforenergy.europa.eu/ |title=Fusion for Energy |publisher=Fusionforenergy.europa.eu |access-date=23 April 2011}}</ref>

===SET Plan===
The [[Seventh Framework Programme]] research program that run until 2013 only reserved a moderate amount of funding for energy research, although energy did emerge as one of the key issues of the European Union. A large part of FP7 energy funding was devoted to [[Fusion power|fusion]] research, a technology that will not be able to help meet European [[climate and energy]] objectives until beyond 2050. The European Commission tried to redress this shortfall with the SET plan.<ref name="IEA">{{cite web |title=International Energy Agency – Energy Publications |url=http://www.iea.org/textbase/publications/free_new_Desc.asp?PUBS_ID=2045 |url-status=dead |archive-url=https://web.archive.org/web/20090429082746/http://www.iea.org/Textbase/publications/free_new_Desc.asp?PUBS_ID=2045 |archive-date=29 April 2009 |access-date=23 April 2011 |publisher=Iea.org}}</ref>

The SET plan initiatives included a [[European Technology Platform for Wind Energy|European Wind Initiative]], the Solar Europe Initiative, the [[European Biofuels Technology Platform|Bioenergy Europe Initiative]], the [[European Technology Platform for the Electricity Networks of the Future|European electricity grid initiative]] and an initiative for sustainable nuclear fission.<ref name="IEA" /> The budget for the SET plan is estimated at €71.5 billion.<ref>{{Cite web |title=What is the SET-Plan? |url=https://setis.ec.europa.eu/what-set-plan_en |website=setis.ec.europa.eu}}</ref> The [[International Energy Agency|IEA]] raised its concern that [[Demand-side technology|demand-side technologies]] do not feature at all in the six priority areas of the SET Plan.<ref name="IEA" />

==Public opinion==
[[File:Grüne protests against nuclear energy.jpg|right|thumb|Anti-nuclear protest near [[Deep geological repository|nuclear waste disposal centre]] at [[Gorleben]] in northern Germany]]
In a poll carried out for the European Commission in October and November 2005, 47% of the citizens questioned in the 27 countries of the EU (including the 2 states that joined in 2007) were in favour of taking decisions on key energy policy issues at a European level. 37% favoured national decisions and 8% that they be tackled locally.<ref>[http://ec.europa.eu/public_opinion/archives/ebs/ebs_247_en.pdf Special Eurobarometer 247. Attitudes towards Energy], January 2006</ref>

A similar survey of 29,220 people in March and May 2006 indicated that the balance had changed in favour of national decisions in these areas (42% in favour), with 39% backing EU policy making and 12% preferring local decisions. There was significant national variation with this, with 55% in favour of European level decision making in the Netherlands, but only 15% in Finland.<ref>[http://ec.europa.eu/public_opinion/archives/ebs/ebs_258_en.pdf Special Eurobarometer 258. Energy Issues], November 2006</ref>
[[File:Half of Europeans say they expect there will be a quota of energy allocated to each citizen in 20 years.jpg|thumb|Half of European respondents to a survey on climate say they expect there will be a quota of energy allocated to each citizen in 20 years.]]
A comprehensive public opinion survey was performed in May and June 2006.<ref name=SpecialEurobarometer2007>[http://ec.europa.eu/public_opinion/archives/ebs/ebs_262_en.pdf Special Eurobarometer 262]: Energy Technologies: Knowledge, Perception, Measures, January 2007</ref> The authors propose following conclusions:
* Energy issues are considered to be important but not at first glance.
* EU citizens perceive great future promise in the use of renewable energies. Despite majority opposition, nuclear energy also has its place in the future [[energy mix]].
* Citizens appear to opt for changing the energy structure, enhancing research and development and guaranteeing the stability of the energy field rather than saving energy as the way to meet energy challenges.
* The possible future consequences of energy issues do not generate deep fears in Europeans' minds.
* Europeans appear to be fairly familiar with energy issues, although their knowledge seems somewhat vague.
* Energy issues touch everybody and it is therefore hard to distinguish clear groups with differing perceptions. Nevertheless, rough distinction between groups of citizens is sketched.

== Example European countries ==

=== Germany ===
{{main|Energiewende in Germany}}

In September 2010, the German government adopted a set of ambitious goals to transform their national energy system and to reduce national greenhouse gas emissions by 80 to 95% by 2050 (relative to 1990).<ref name="bmwi-and-bmu-2010">{{cite book |author1=Federal Ministry of Economics and Technology (BMWi) |url=http://www.bmwi.de/English/Redaktion/Pdf/energy-concept,property=pdf,bereich=bmwi,sprache=en,rwb=true.pdf |title=Energy concept for an environmentally sound, reliable and affordable energy supply |author2=Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) |date=28 September 2010 |publisher=Federal Ministry of Economics and Technology (BMWi) |place=Berlin, Germany |access-date=2016-05-01 |archive-url=https://web.archive.org/web/20161006040920/http://www.bmwi.de/English/Redaktion/Pdf/energy-concept%2Cproperty%3Dpdf%2Cbereich%3Dbmwi%2Csprache%3Den%2Crwb%3Dtrue.pdf |archive-date=6 October 2016 |url-status=dead}}</ref> This transformation became known as the ''Energiewende''. Subsequently, the government decided to the phase-out the nation's fleet of nuclear reactors, to be complete by 2022.<ref name="bruninx-etal-2013">{{cite journal |last1=Bruninx |first1=Kenneth |last2=Madzharov |first2=Darin |last3=Delarue |first3=Erik |last4=D'haeseleer |first4=William |year=2013 |title=Impact of the German nuclear phase-out on Europe's electricity generation — a comprehensive study |url=https://www.mech.kuleuven.be/en/tme/research/energy_environment/Pdf/wpen2012-15 |journal=Energy Policy |volume=60 |pages=251–261 |doi=10.1016/j.enpol.2013.05.026 |bibcode=2013EnPol..60..251B |access-date=2016-05-12|url-access=subscription }}</ref> As of 2014, the country is making steady progress on this transition.<ref name="bmwi-2015">{{cite book |url=https://www.bmwi.de/BMWi/Redaktion/PDF/V/vierter-monitoring-bericht-energie-der-zukunft-englische-kurzfassung,property=pdf,bereich=bmwi2012,sprache=de,rwb=true.pdf |title=The Energy of the Future: Fourth "Energy Transition" Monitoring Report — Summary |date=November 2015 |publisher=Federal Ministry for Economic Affairs and Energy (BMWi) |place=Berlin, Germany |access-date=2016-06-09 |archive-url=https://web.archive.org/web/20160920202129/https://www.bmwi.de/BMWi/Redaktion/PDF/V/vierter-monitoring-bericht-energie-der-zukunft-englische-kurzfassung%2Cproperty%3Dpdf%2Cbereich%3Dbmwi2012%2Csprache%3Dde%2Crwb%3Dtrue.pdf |archive-date=2016-09-20 |url-status=dead}}</ref>

== See also ==
* [[CHP Directive]]
* [[Directorate-General for Energy]]
* [[Energy Charter Treaty]]
* [[Energy Community]]
* [[Energy diplomacy]]
* [[Energy in Europe]]
* [[EU Energy Efficiency Directive 2012]]
* [[European Climate Change Programme]]
* [[European Commissioner for Energy]]
* [[European countries by electricity consumption per person]]
* [[European countries by fossil fuel use (% of total energy)]]
* [[European Ecodesign Directive]]
* [[European Pollutant Emission Register]] (EPER)
* [[European Union energy label]]
* [[Global strategic petroleum reserves]]
* [[Internal Market in Electricity Directive]]
* [[INOGATE]]
* [[Synchronous grid of Continental Europe#List of electricity interconnection levels|List of electricity interconnection level]]
* [[Renewable energy in the European Union]]
* [[Special economic zone]]
* [[Transport in Europe]]

==References==
{{reflist}}

==External links==
* {{official|https://ec.europa.eu/energy/home_en}}
* [https://web.archive.org/web/20081107160104/http://www.agathepower.eu/ European information campaign on the opening of the energy markets and on energy consumers' right].
* [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52007DC0723:EN:NOT European Strategic Energy Technology Plan], Towards A [[low carbon|Low Carbon]] Future.
* [http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Category:Energy Eurostat – Statistics Explained – all articles on energy]
* [http://www.managenergy.net ManagEnergy], for [[efficient energy use|energy efficiency]] and [[renewable energy|renewable energies]] at the local and regional level.
* [http://news.bbc.co.uk/1/hi/world/europe/4783996.stm BBC Q&A: EU energy proposals]
* [http://europa.eu/legislation_summaries/energy/european_energy_policy/l27062_en.htm 2006 Energy Green Paper]
* [http://www.ensec.org/index.php?option=com_content&view=article&id=177:collective-energy-security-a-new-approach-for-europe&catid=92:issuecontent&Itemid=341 Collective Energy Security: A New Approach for Europe]
* [https://web.archive.org/web/20140923022937/http://ec.europa.eu/energy/oil/berlin_forum/berlin_forum_en.htm Berlin Forum on Fossil Fuels].
* Netherlands Environmental Assessment Agency – [http://www.mnp.nl/en/publications/2005/Meeting_the_EU_2_degrees_C_climate_target__global_and_regional_emission_implications.html Meeting the European Union 2 °C climate target: global and regional emission implications]
* German Institute for International and Security Affairs – [http://www.swp-berlin.org/fileadmin/contents/products/arbeitspapiere/External_KS_Energy_Policy__Dez_OG_.pdf Perspectives for the European Union's External Energy Policy]
* Wiley Interdisciplinary Reviews -- (open access)[https://doi.org/10.1002/wcc.863 Dupont, C., et al. (2024). Three decades of EU climate policy: Racing toward climate neutrality? WIREs Climate Change, 15(1), e863.]
* [https://ssrn.com/abstract=1137823 The Liberalisation of the Power Industry in the European Union and its Impact on Climate Change – A Legal Analysis of the Internal Market in Electricity].

===In the media===
* 8 Sep 2008 New Europe ([https://web.archive.org/web/20080909040127/http://neurope.eu/ neurope.eu]) : [https://web.archive.org/web/20111227100121/http://www.neurope.eu/blog/energy-security-and-europe Energy security and Europe].
* 10 Jan 2007, [[Reuters]]: [https://www.washingtonpost.com/wp-dyn/content/article/2007/01/12/AR2007011200399_2.html EU puts climate change at heart of energy policy]
* 14 Dec 2006, opendemocracy.net: [https://web.archive.org/web/20080121191908/http://www.opendemocracy.net/globalization-institutions_government/energy_policy_4186.jsp Russia, Germany and European energy policy]
* 20 Nov 2006, eupolitix.com: [https://web.archive.org/web/20070927225843/http://www.eupolitix.com/EN/News/200611/ae62ded5-0e8a-4327-a1c5-4b7e15a6bc3c.htm Barroso calls for strong EU energy policy]

{{European Union topics}}
{{Energy in Europe}}
{{Energy in Germany}}
{{Portal bar|Energy|Politics|European Union}}

{{DEFAULTSORT:Energy Policy of the European Union}}
[[Category:Energy policies and initiatives of the European Union| ]]
[[Category:Energy economics]]
[[Category:European Green Deal]]