EU Aims for 46% Electrification by 2040 to Cut Fossil Fuel Reliance

The European Commission announced a goal to electrify 46% of the EU economy, covering transport, industry, and buildings, by 2040. This initiative seeks to reduce the bloc’s annual fossil fuel import costs by €260 billion and lessen dependence on sources like those from the Strait of Hormuz.

The Commission will propose reforms to energy network fees, taxation, and building efficiency to support this transition. Currently, only 23% of the EU economy is electrified, with the remaining 77% relying on fossil fuels.

However, officials acknowledge high electricity prices present a challenge, as electricity is still taxed more heavily than gas in some member states. The Commission is proposing a principle requiring equal taxation of both energy sources, while allowing flexibility in national tax structures. The success of this plan hinges on addressing existing fossil fuel subsidies and securing binding renewable energy targets for the future.