European Union (EU)

The European Union (EU) ranks 20th in this year’s CCPI, down three spots from last year. It receives medium ratings across the board in GHG Emissions, Renewable Energy, Energy Use, and Climate Policy.

Integration into European Climate Law, but seeking its amendment; questions about member states’ NECP implementation

The EU finalised the revision of its 2030 climate policy framework to reach a 55% net emissions reduction by 2030 and climate neutrality by 2050. It submitted an updated Nationally Determined Contribution (NDC) in October 2023, which reflects this framework. Integration into the European Climate Law gives it a strong legal standing and many policies are oriented toward it, such as the Renewable Energy Directive (RED III 2023), Emissions Trading Systems (ETS1 and ETS2), and Energy Performance Buildings Directive (EPBD 2024). The latest debate (November 2025) on the new NDC has not yet been reflected in the climate policy assessment. CCPI experts welcome the agreement on NDC 3.0 ahead of COP30 in Belém. They are, however, critical of the planned use of international carbon credits from 2036 onwards, as well as the 2035 target range, which spans from –66.25% to –72.5%.

However, the CCPI experts question the likelihood of member states’ full implementation of the revised National Energy and Climate Plans (NECP) regarding the 2030 target published in May 2025. They also criticise the legal proposal the European Commission put forward in July 2025 for amending the European Climate Law, indicating further flexibility for member states regarding the 2040 target and deviating from a purely domestic target. The experts point out that the EU is lacking intermediate targets and the goals set are not sufficiently ambitious.

EPBD shows potential in energy reform, yet agriculture has little incentive to decarbonise

RED III provides a policy framework with an overall EU minimum binding target of 42.5% and an aspirational 45% target by 2030 for the renewable energy share in gross final energy consumption, although the experts criticise the lack of national binding targets and weak enforcement. They stress that a 1.5°C-compatible pathway would require at least a 50% renewable energy share. Implementation remains a major gap, with the European Commission having launched infringement procedures against 26 member states for non-compliance.

Regarding energy use, the EPBD introduced positive elements, such as the fossil fuel boiler subsidy stopping by 2025 and an innovative solar mandate for non-residential buildings. The experts see potential in its focus on the worst-performing buildings and its social aspects. However, they criticise the flexibility in residential sector requirements and the lack of binding national targets. The 2040 boiler phase-out does not exclude polluting fuels such as wood logs or pellets, and policies for transport electrification remain insufficient, with a modal shift nearly absent in EU policies.

The experts also note the shortcomings in other sectors. The Common Agriculture Policy (CAP) takes up a major part of the EU budget, yet it provides minimal incentives for decarbonisation. There is also weak action on forest protection and on agricultural and land use emissions.

Supportive internationally, though CBAM lacks fairness in application and toward impacted countries

At the international level, the experts welcome the EU’s supportive role in the Energy Transition Forum and technical support for the Sevilla Platform for Action on premium flyers contribution, and the efforts to increase the overall level of ambition in the mitigation file. Nevertheless, the experts note that the EU refuses to acknowledge the unfair trajectory of implementing the Carbon Border Adjustment Mechanism (CBAM), which prices carbon emissions embedded in certain imported goods, and they criticise that the impacted countries may have contributed the least to climate change. The experts criticise the EU for having a weak stance on international climate finance, debt, private finance, and tax at the 4th UN Financing for Development Conference. They recommend reversing the decline in public finance, focusing on adaptation and a just transition, and halting external gas investments.

They recommend that the EU develop a coherent policy framework and negotiation strategy based on the alignment of domestic actions and European positions. They also stress that the EU should substantially raise its ambition to achieve net zero emissions. And they call for binding fossil fuel phase-out dates (coal by 2030, gas by 2035, oil by 2040), higher targets for energy savings and renewable energy by 2030, of at least 45% and 50% and aiming at a fully renewable energy system by 2040.

Key Outcomes

CCPI experts

The following national experts agreed to be mentioned as contributors for this year’s CCPI:

• Germanwatch
• Wendel Trio