The European Commission proposed doubling the bloc's electrification rate to 46 percent by 2040, aiming to replace more than 70 percent of gas imports and cut crude oil purchases by 40 percent. Presented by Commission President Ursula von der Leyen on Thursday, the Electrification Action Plan seeks to reduce the energy price gap between electricity and fossil fuels and save up to 260 billion euros in annual fossil import costs.
The plan targets a jump from a 23 percent electrification rate — stagnant for a decade — to 32 percent by 2030 before reaching the 2040 goal. Key measures include doubling heat pump installations, revising clean vehicle rules, expanding the Emissions Trading System, and launching an Industrial Decarbonisation Bank. EU Energy Commissioner Dan Jørgensen called the target "very ambitious."
The push follows mounting energy costs; the Iran conflict has added 50 billion euros to EU oil and gas import bills since February 2026. Electrification could cut carbon emissions by more than 2 billion tonnes by 2040.