EU Drafts 2040 Electrification Target to Slash Oil and Gas Dependence

The European Commission will present an “Electrification Action Plan” on July 17, proposing a binding EU-wide target that will set the share of electricity in final energy consumption for 2040. The exact percentage is left blank in the draft, but the Commission intends to embed the goal in legislation as part of a post-2030 energy framework during the fourth quarter of 2026.

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The move follows two recent energy shocks—the Russian war on Ukraine and a 111-day Middle-East crisis that added roughly €50 billion to EU fossil-fuel import costs. The Commission frames higher electrification as a matter of “sovereignty,” competitiveness, and energy security, aiming to reduce reliance on imported oil and gas and to accelerate the market for clean-technology products.

EU Observer

• Electricity currently supplies about 23 % of the EU’s final energy consumption, a share that has barely moved in a decade.

EU Electrification Target 2040: Boost Electricity Use

• The draft estimates that faster electrification could replace roughly two-thirds of EU gas demand and halve oil consumption by 2040.

EU Observer

• Expected savings amount to ? €200 billion ($228 billion) in fossil-fuel import bills over the period.

EU Observer

• An Ember analysis suggests an implicit 32.5 % electricity share by 2030, while the EU’s climate law targets a 90 % cut in net greenhouse-gas emissions by 2040.

EU Electrification Target 2040: Boost Electricity Use

The Commission stresses that boosting the share of locally produced, renewable electricity will not only meet climate goals but also curb high energy prices that threaten European industrial competitiveness. It positions the target as a cornerstone of the broader “affordable energy plan” and the “clean industrial deal,” both intended to strengthen the bloc’s clean-tech market and energy security.

EU Electrification Target 2040: Boost Electricity Use

• “The recent crisis in the Middle East showed for the second time in five years the risks of the EU’s dependency on imported fossil fuels,” — *European Commission draft*

EU Observer

• “With decisive action at all levels, Europe can become the first electro-continent,” — *European Commission*

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• “This profound transformation will require investments and lead to savings and benefits well beyond the energy system, from clean tech manufacturers to the installation sector, from more modern and competitive industries to emissions and pollution reduction in European cities.” — *European Commission*

Oil Price

• “The draft, partially revealed by Bloomberg, suggests that accelerating electrification could enable Europe to replace two-thirds of its gas demand, halve oil consumption, and reduce fossil fuel import bills by approximately 200 billion euros (about 228 billion dollars) by the end of the next decade.” — *Electrification Action Plan draft*

EU Electrification Target 2040: Boost Electricity Use