Energy Transition

More than 75% of the EU’s greenhouse gas emissions come from energy use. To stay within the Paris Agreement’s 1.5°C target, CAN Europe calls for an urgent shift from fossil fuels to renewable energy and for the modernization of Europe’s grids. At the same time, we stress that households must not be burdened with excessive costs, and the most vulnerable consumers must be protected.

 

CAN Europe works for a European energy transition that prioritises social justice and energy efficiency while switching to a fully renewable energy system. Together with members, academia and experts, we developed our Paris Agreement compatible (PAC) energy scenario 2.0, as an updated vision, describing how Member States can achieve the Paris Agreement’s objective of limiting average global temperature increase to 1.5°C. In a bottom-up research process, we reflected both the required emission reductions as well as the potential of energy savings and renewables.

 

Given the global climate emergency, the EU can and must increase ambition. In the PAC 2.0 scenario, we call the EU to:

• Cut its emissions by at least 65% in 2030 instead of only 40% compared to the 1990 level.
• Get on a trajectory towards net zero emissions in 2040 instead of 2050.
• Base its energy supply on 100% renewables in 2040.

 

A timely response to climate change generates economic, social and environmental benefits alike for citizens.

 

Circular economy, deep renovation and electrification with renewables.

 

In the industry sector, we foresee that the circular economy decreases the raw material demand, makes it less energy-intensive, and in addition, also will begin to generate new value. Industrial processes electrify so that they can use renewable electricity. Only for high-temperature processes, e.g. for steel production, renewable hydrogen will be needed.

 

The buildings we’re living and working in will undergo a deep renovation wave around Europe. Tripling the current deep renovation rates will cut final energy demand by roughly two thirds. At this occasion, fossil heating systems will be replaced by electric heat pumps. Alternatively, a connection to a district heat network that distributes renewable heat.

 

In the transport sector, the remaining passenger cars will be used far more efficiently – as they will all be electrified by 2040. This will massively increase the use of renewable electricity for mobility needs. Liquid biofuels will only play a niche role. Modal shifts, access to public transport and rail connectivity are prioritised. Renewable hydrogen, renewable ammonia and liquid synthetic fuels are introduced in long-distance heavy-freight, shipping and aviation.

 

CAN Europe also urges policy-makers to prepare the energy infrastructure for 100% renewables through fostering flexibility instead of deepening our dependency on fossil fuels.

 

Ahead of the upcoming EU Grids Package, we urge the EU to ensure that Europe’s grids are renewables-ready, future-proof, and socially fair. In our joint call for evidence, CAN Europe and its members recommend the following actions:

• Boost public financing by expanding the Connecting Europe Facility (CEF) for electricity projects and allocating new EU and national funds for transmission and distribution.

• Accelerate permitting without environmental backsliding by fully implementing REDIII, addressing staffing shortages, and advancing digitalisation.

• Reform EU planning to be based on a 100% renewable scenario, with stronger independent oversight and full transparency.

• Resolve interconnection delays through direct intervention in stalled negotiations and by revising Cross-Border Cost Allocation rules.

• Optimise the existing grid with national Rapid Capacity Plans, increased storage and flexibility, and deployment of grid-enhancing technologies.
  

 

Put communities at the centre of new infrastructure through meaningful public participation, dedicated community grid capacity, and fair community benefit sharing.

Embracing a swift and just transition to 100% renewable energy is pivotal for Europe. It paves the way for a climate-neutral, energy-secure, and resilient future. Moreover, it aligns with global efforts to limit temperature rise within the 1.5°C target.

 

To achieve net zero emissions by 2040 and meet both our climate and biodiversity targets, Europe must take decisive actions: phasing out fossil fuels, drastically reducing energy consumption through increasing energy efficiency, and transition to a 100% renewables-based energy system by 2040. For EU Member States, this requires them to substantially scale up their renewable energy production, primarily solar and wind, and already produce half of their energy consumption by renewables by 2030, as also illustrated by the civil society’s energy scenario.

 

It’s paramount that the accelerated deployment not only respects biodiversity but also involves citizens and local communities, ensuring adherence to the highest environmental and social standards throughout every phase.

 

In the wake of the Russia’ invasion of Ukraine, which worsened the energy price crisis, the EU has placed increased focus on the swift deployment of renewable energy sources as a vital countermeasure. Solar and wind energy deployment is beating all projections and expectations, shielding people and businesses from volatile fossil energy prices and bringing enormous savings from fossil gas costs. In fact, since the beginning of the crisis wind and solar deployment helped EU countries save roughly EUR 100 billion thanks to reduced electricity costs.

 

Renewable energy technologies are constantly improving, innovating, becoming cheaper and more accessible. They now stand as a cornerstone for a secure and resilient energy supply. As fossil fuel prices skyrocketed during 2021-2022, renewable power experienced one of its most significant boosts in competitiveness over the past twenty years. Renewable energy sources (RES) are the most cost effective form of power option available today and can lower electricity generation costs. This can provide a tangible impact on people’s electricity bills provided that the right actions are put in place to accompany the scale up of renewables, in particular by modernising and expanding the grid and adjusting taxes and levies to reduce overall electricity system costs. 

 

The pressing need is to accelerate their deployment on a massive scale, while ensuring biodiversity conservation and engaging local communities and citizens from the very start. This should be complemented by enhancing storage capacities, grid improvements, and demand-side flexibility.

 

Sustainable renewable energy not only fights the climate crisis but also bolsters local economies. Unlike fossil fuels, tapping into local renewable energy sources amplifies local value. This can manifest in various ways, such as increased tax revenues for municipalities and regions, job creation, and the flourishing of local small and medium-sized enterprises (SMEs). 

 

Furthermore, it offers citizens a chance to actively participate, whether through democratic means or financial investments, like becoming shareholders in renewable energy cooperatives or taking on the role of prosumers. This empowers communities to shape and manage their local energy systems in alignment with their unique priorities and plans.

 

In the EU and throughout wider Europe, the challenge extends beyond raising ambition levels. Countries must also focus on enhancing their national policies and taking measures that pave the way for greater local deployment of renewables, ensuring that the energy transition is both sustainable and inclusive.

 

In 2023, renewable energy represented 24.5 % of energy consumed in the EU, up from 23% in 2022 according to the latest statistics. Accelerated RES progress is necessary, alongside efficiency gains to alleviate increasing energy consumption across Europe. There are deep concerns about the trajectory towards 2030 which requires a significant reduction of energy consumption and an increase in the deployment of renewable energy.

 

Moreover, the recently revised 2030 EU renewable energy target (at least 42.5% but aiming for 45%) is not in line with the Paris Agreement objective to limit temperature rise to 1.5°C. CAN Europe supports an EU binding target for the share of energy from renewable sources in gross final energy consumption of at least 50% by 2030.

We can only fulfil a just transition to 100% renewable energy through enhancing our electricity grids and electrifying demand, allowing renewables to decarbonise. 

 

Today around 23% of final energy consumption is via electricity, meaning significant shares of industry, transport, and heating are unable to benefit from renewable electricity such as solar and wind. At the same time, our power grids are old, congested, and inflexible, which risks new renewable resources not being able to be connected to the grid.

 

Electrification of demand means switching out old oil and gas consuming technologies, in favour of solutions which can consume electricity instead. This can include switching household gas boilers for heat pumps, fossil-powered cars for electric buses, and dirty industrial coal heaters to new electric arc-furnances. However, this must be done in a way that is equitable, to not burden vulnerable households, and to ensure historically-polluting industries are paying their fair share. We must ensure that this is a renewables-based electrification, meaning new electricity is produced by wind and solar, not new gas turbines. 

 

Europe’s grids need modernisation to allow for renewables-based electrification. New cables can take several years to build, and require high up-front costs. Speeding up grid development is required, but the removal of vital environmental legislation is counter-productive – digitalising applications, and increasing staffing and resources is the solution. Countries must ensure grid plans include public participation from the start and follow the latest nature-friendly designs. More public investment can help keep costs off consumers. 

 

Energy efficiency must remain at the heart of this work. Households are unable to electrify their heating and cooling if buildings are not renovated, and an overuse of data centres risks absorbing new electricity and not bringing down emissions. While the electricity grid needs to be expanded, it also needs to be optimised, to ensure energy is not wasted, by deploying energy storage, demand flexibility and grid-enhancing technologies, to ensure effects on space, resources, and communities can be minimised.

 

Linking this work, consumers must play a role in the energy system. Fair flexible network tariffs can allow consumers to benefit when they act flexibility, lowering costs and helping to maintain a healthy grid.

Reducing energy consumption is the most immediate way to reduce greenhouse gas emissions. At the same time, increasing Europe’s  energy savings can reduce our dependence on fossil fuel imports, enhance energy security and bring more competitiveness. Energy efficiency measures can also create millions of jobs, reduce energy bills, help relieve energy poverty and improve air quality.

 

The European Union has set an energy efficiency target for 2030, while a series of policies and measures are already in place. They cover different sectors and issues such as buildings, appliances and vehicles.

 

The 2030 EU energy efficiency target is a reduction of energy consumption of at least 11.7%. It was set when the Energy Efficiency Directive (EED), a key piece of the EU energy efficiency legislation, was revised in 2023 as part of the Fit for 55 package. The EU energy efficiency target is binding for final energy consumption and is the trigger to stronger measures on a national level to help achieve the target in the given timeframe. Until now, Member States underperformed with regards to their national energy efficiency contributions for 2030 in their National Energy and Climate Plans (NECPs). 

 

The Commission’s analysis of the 2030 national energy efficiency contributions included in the NECPs indicates an ambition gap to the level of ambition of around 8.1% for final and 7.5% for primary energy consumption towards the 2030 energy efficiency target.  

 

The lessons learnt from the 2030 energy efficiency targets point out to the importance of having strong governance mechanisms and binding EU and national targets for Member States and robust implementation of relevant policies. Europe should aim for higher ambition and stronger measures. Otherwise, the economy and the society will be missing out on the multiple benefits energy efficiency has to offer. This is needed not only to be able to achieve the 2030 targets, but also the long-term climate objectives that are compatible with a 1.5°C world.

 

In the last 20 years, the EU has nevertheless made considerable progress with regards to the reduction of energy consumption. Energy efficiency and energy savings have played a major role in this trend, while it needs to be acknowledged that since 2020, COVID-19, the energy crises, leading to high energy prices, as well as warm winters were also major drivers to reduce energy consumption. The European Environment Agency states that in 2023 EU primary energy consumption reached 1210 Million Tonnes of Oil equivalents (Mtoe), while EU-wide levels of final energy consumption reached 894 Mtoe. As a result, the rate of energy consumption reduction over the past three years suggests that the 2030 energy efficiency targets would be achieved if this progress can be maintained.

 

As action in the next few years will be decisive in reaching the 1.5°C objective, the 2030 and post-2030  EU energy efficiency targets should align with the Paris Agreement goal.  CAN Europe calls for at least 20% energy savings  by 2030 (compared to the 2020 Reference Scenario) and halving energy consumption by 2040.  

 

Check our main asks in our position paper.

To reach climate neutrality by 2050 and even by 2040 as advocated for by CAN Europe and based on scientific evidence, we need to get rid of polluting fossil fuels in our energy system.

 

While a European wide coal phase out is well advanced, a similar trend and narrative needs to be initiated for fossil gas emitting climate wrecking greenhouse gases such as carbon dioxide and methane. The polluting fuel is hailed by the gas industry and politicians as an indispensable transition fuel. However fossil fuels have no role to play in a future energy system based on renewables and energy efficiency. Member States and the EU should start planning right away for a gas phase out by 2035, and develop phase out plans with intermediate objectives.

 

CAN Europe’s work on gas focuses on topics such as energy infrastructure and how to avoid that EU public funds are spent on new gas pipelines, plants or terminals. We closely scrutinise the modelling and planning of future energy infrastructure as well as proposed gas projects.

 

In terms of governance we question the legitimacy of ENTSO’s central role in the modelling and planning of energy infrastructure. These tasks need to be given to an independent and scientific body reflecting and integrating in a fully transparent way all energy solutions needed in a 100% renewables and energy efficient system.

 

Fossil fuels have no role to play in a future energy system based on renewables and energy efficiency.

 

Non fossil gases such as hydrogen generated from renewable electricity only will play a role in the future, however their availability needs to be assessed carefully. Renewable energy production needs to strongly increase to cover growing electrification in many sectors as well as renewables based hydrogen production. The strong enthusiasm shown by the gas industry on hydrogen shows its attempt to stay on the gas train by dressing up into a hydrogen-hydra, with a big fossil and a small renewable hydrogen head.

 

Worrying trends around governance also appear in planning and investment decisions to be taken on the future hydrogen economy. Currently, the Commission communicates a lot about “green hydrogen” based on renewables, however the actors in the driving seat of the “Clean Hydrogen Alliance”  stem mainly from the fossil gas industry.

 

Finally, methane emissions occurring at extraction, transmission and end-use stages contribute significantly to climate change. Alongside a fossil gas phase out, methane emissions should be eliminated by banning venting and flaring and introducing emission performance standards.

 

CAN Europe has long been involved in monitoring the implementation of the climate and energy governance framework. Since 2019, CAN Europe has been coordinating three LIFE projects aiming to facilitate the effective and early transition of Member States across Europe to low carbon and resilient economies: Unify (2019-2022), Together for 1.5 (2022-2025) and Plan4Climate (2025-2028). 

 

 

The European Climate Law, the cornerstone of the European Green Deal, was adopted in 2021. This framework legislation writes into law the goal set out in the European Green Deal for Europe’s economy to become climate-neutral by 2050. The law also sets the intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.

 

CAN Europe has worked to influence this new framework throughout the legislative procedure by urging parties around the table to include several key elements, including an at least 65% emission reduction target compatible with science and with the EU’s Paris Agreement commitment. As often, the law could have been far more ambitious, but represents a step in the right direction.

 

The final version of the law contains the following elements that are worth highlighting:

• 2030 target of ‘at least 55% net’. The 2030 target negotiations were preempted by the European Council conclusions in December 2019, with Heads of States settling for an “at least 55% net” target. In order to implement this target, the Commission adopted or amended from 2021 until 2023 several key EU laws as part of its Fit for 55 legislative package. 
• 2050 climate-neutrality objective: The Council was against a climate neutrality that would apply to each Member State individually, it therefore applies to the EU as a whole. Some silver lining was language saying that the EU shall aim to achieve negative emissions after 2050.
• Greenhouse Gas Budget agreed, but only for 2030-2050:   The European Commission is required to present a greenhouse gas budget for the European Union, alongside the introduction of a climate target for 2040. When preparing this budget, the Commission is required to consider, among other elements, the advice of the recently created European Scientific Advisory Board on Climate Change (ESABCC), as well as social, economic and environmental impacts, including the costs of inaction.  
• European Scientific Advisory Board on Climate Change (ESABCC): The ESABCC is an independent advisory board composed of 15 senior scientific experts covering a broad range of relevant disciplines. It was created by the European Climate Law and started to work in 2022. Its role is to evaluate policies and identify actions and opportunities to achieve the EU’s climate targets. Among others, the ESABCC has provided scientific information to the European Commission in the preparation of the 2040 climate target and 2030-2050 greenhouse gas budget.  
• Climate mainstreaming: The European Climate Law requires the Commission to undertake a policy consistency check of EU measures with the 2050 climate neutrality objective. The Commission is also required to assess the progress made by Member States towards the achievement of the climate neutrality objective, both collectively and on the basis of national measures. These assessments are conducted every 5 years, starting in 2023. 

 

Fossil fuel subsidies: Language, in a recital, saying that the EC will have to come up with a better methodology for monitoring at Member State level, but nothing on a possible phase-out date.

We will fail to achieve climate neutrality if we do not substantially reduce consumption and cut CO2 emissions from our homes, offices and the whole built environment, by tripling the current renovation rates. Improving the energy performance of Europe’s building stock is a stepping stone in the path towards full decarbonisation, ensuring energy and resource efficiency, enhancing energy security and promoting renewable energy deployment. 

 

The building sector plays an essential role in the energy transition. Buildings consume around 42% of the EU final energy used by all sectors, and are thus the largest single energy consumer in the EU, while emitting 36% of energy-related greenhouse gas (GHG) emissions. Around three-quarters of the European building stock is energy inefficient and 85 to 95 % of the buildings that exist today will still be standing in 2050.. However, current annual energy renovation rates across Europe are extremely low, around 1%, with deep renovations – notably those achieving the highest energy savings – representing just a very small fraction of it.  

 

Therefore, EU-wide energy retrofitting, and sustainable, energy efficient and fully renewables-based construction stand as key actions to not only mitigate climate change, but also in light of the socio-economic benefits they can bring about.

 

In particular, investing in energy renovation ensures lower energy bills for final consumers, as well as improved health, comfort and indoor air quality, while having the potential to stimulate economic growth and substantial job creation (especially at local level). Through adequate technical and financial support (that prioritises the most in need) and social safeguards, a better performing building stock can also help to alleviate energy poverty and deliver better lives for all.

 

The Energy Performance of Buildings Directive (EPBD) is the main EU legal instrument which aims at improving the energy efficiency while fostering renewable energy in buildings, in conjunction with the relevant provisions of the Energy Efficiency Directive and the Renewable Energy Directive. 

 

Yet the existing framework is not enough to be in line with the higher EU 2030 climate ambition, not to mention to comply with the Paris Agreement’s commitment. For this reason, under the European Green Deal, the Commission published in October 2020 the so-called Renovation Wave strategy, an action plan of regulatory, financing and enabling measures aiming at boosting rates and depth of renovations over the next decade. Overall, the different actions foreseen, such as the revision of the EPBD to introduce mandatory minimum energy performance standards for non residential buildings and national trajectories for the progressive renovation of homes, should contribute to at least double the current rate by 2030, in line with the objectives of the Renovation Wave. by 2030. 

 

The EU level of ambition is still inadequate to be in line with the Paris Agreement’s goal of limiting temperature rise to 1.5°C. According to the findings of the PAC scenario, in order to achieve climate neutrality by 2040, final energy demand should decrease by 33% by 2030, implying the need to at least triple current annual renovation rates and to maximise deep renovations.

Burning coal for energy fuels catastrophic climate change, impacts people’s health and prosperity, pollutes the environment and water, ruins economies by draining resources and crowding-out other economic activities, including accelerated deployment of renewables.

 

It is one of the main drivers of climate change because coal burned for energy purposes is the most greenhouse gas intensive fossil fuel. Despite this,  still in 2022 36% of the world’s electricity was still generated from coal. Globally, coal causes over 15 Gigatons of CO2 per year and those emissions are still expected to grow. 

 

According to scenarios prepared to calculate how the world should reduce emissions in order to stay within 1.5 degrees limit, in line with the IPCC 1.5 Report, halting the use of coal for power generation is the single most important source of emissions reductions. Yet, despite this knowledge, the world is not on track for the steep reductions in coal power necessary to meet the Paris climate agreement.

 

Europe is running out of time

Phasing out coal is the low-hanging fruit when it comes to scaling up emission reductions in Europe. The continent and EU can become coal phase out world leader setting the example for other countries. In order to achieve a 1.5°C world, the EU and all OECD countries must phase-out coal by 2030, at the latest. The pathway is clear: EU power sector must become coal-free by 2030. Multiple reports show that this is feasible, even in emerging economies, like Turkey.

 

If we are to comply with what was agreed in Paris, building new coal plants in Europe cannot be a matter of debate. 

 

Running out of health

Coal’s overall human and ecological toll is staggering. Mining and burning coal causes dangerous emissions such as sulfur dioxide, nitrogen oxide, dust particles and mercury emissions, and contaminates soil, air and water. See our reports Europe’s Dark Cloud and Last Gasp to read about health impacts. We also describe The impacts of coal-based energy policy on water in Turkey.

 

Air and water pollution from coal plants knows no borders. As such, coal plants in any one country are a problem for all of us, affecting public health even in countries without coal plants. Check our Chronic Coal Pollution and Real Costs of Coal: Mugla reports to see how the coal plants in the Western Balkans and Turkey exacerbate this issue. Each year we know increasingly more on health benefits and saved health costs related to phasing out coal power generation (see data for Poland and Turkey). We need to act on it!

 

Running out of money

The coal industry is unable to compete with buoyant renewables, which are cheaper to operate, cleaner and more flexible. The coronavirus crisis has shown that coal’s goodbye to Europe is sooner than expected. Even gas-related energy crisis in 2022/2023 caused by Russian invasion on Ukraine have not reversed this trend.  But numerous subsidies still keep this dying industry alive by pumping billions of taxpayers’ euros. Taking responsibility for the management of coal’s comprehensive and final departure means no more hand-outs to the coal industry. Nor should the public money support other dead-ends in coal regions, such as fossil gas.

 

All the funding accessible for the coal regions should support a just and rapid transition away from fossil fuels and towards energy efficiency and renewables. It also means all countries with coal regions must immediately design and implement just transition plans and strategies for the communities not to be left behind. See out Just Transformation Vision, where we lay out what need to be done to assure justice during societal transformation toward climate neutrality. Here, you can read how first attempts are performed in Western Balkans, which unlike the EU does not yet have the dedicated Funds to support the process, like EU Just Transition Fund. Besides, here you can read the report takes a local perspective on just transition, zooming in  the case  of Milas, a coal region in Turkey which is one of few countries with no coal exit plan.

 

CAN Europe strongly supports the phase out of coal through its work with Beyond Fossil Fuels campaign secretariat, integrating the coal debate in our regular policy work, and by supporting our members and allies in Turkey and the Western Balkans.