The European Commission has presented its Electrification Action Plan alongside a revision of the European Union Emissions Trading System (ETS). The plan sets a target to increase electricity's share of the European Union energy mix from 23% to 46% by 2040, aiming to halve oil consumption and reduce gas use by two-thirds, strengthening energy security.
The Action Plan calls on national governments to reduce value added tax on electric vehicles and heat pumps, phase out fossil fuel subsidies and accelerate renewable energy deployment through full implementation of the Renewable Energy Directive. It also proposes new legislation to ensure electricity is no longer taxed more heavily than gas, tackle speculative grid connection requests and align grid levies with the efficient operation of the electricity system.
The revised ETS maintains carbon pricing to support the energy transition, but WindEurope argues that the changes do not sufficiently encourage industrial electrification. The association says extending free emissions allowances into the 2040s weakens investment incentives and fails to prioritise electrification through the Innovation Fund and Industrial Decarbonisation Bank. WindEurope has called on the European Parliament and the Council to strengthen the ETS to support investment in renewables, industrial heat pumps, electric boilers and thermal energy storage.
