EU Commission Unveils Action Plan for Electrification and Reform of the Emissions Trading System
With a new electrification plan and a reform of the EU Emissions Trading System, the European Commission aims to strengthen industry, climate protection, and competitiveness
July 23, 2026
Source: European Commission
The European Commission has presented an action plan on electrification as well as proposals to reform the EU Emissions Trading System (EU ETS).
The goal is to accelerate the electrification of industry, transportation, and buildings, reduce dependence on fossil fuel imports, and strengthen the competitiveness of the European economy.
By 2040, the share of electrification in energy consumption is expected to rise to 46 percent. According to the Commission, this could reduce annual spending on fossil fuel imports by around 260 billion euros.
At the same time, the EU Emissions Trading System is to be more strongly aligned with investments in climate-friendly technologies. Plans include, among other things, additional funding for industrial decarbonization, an adjustment of emission caps, and measures to stabilize the CO₂ market. In addition, companies are to receive greater support for investments in low-emission technologies.
With the electrification plan, the Commission also aims to promote the use of heat pumps, electric vehicles, and battery storage systems. Plans include lower electricity ancillary costs, the accelerated expansion of smart grids, and investments in European grid infrastructure.
The full press release is available on the European Commission’s website.
