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A guide to the policies, regulations and financial incentives now driving the energy transition in Europe
Policy & Regulation
Stimulus packages
Leasing solutions
Governments have been developing policy to reduce emissions and promote renewables for some time. The goal is clear. The UN has agreed to limit global warming to less than 1.5 degrees Celsius, compared to pre-industrial levels. Climate neutrality by 2050 is the target.
To keep policy and regulations on track, interim targets have been set by the EU and most European counries outside the EU. Deadlines to achieve those targets, tight from the outset, are now tighter as Europe strives for energy security.
Europe needs to make the energy transition quickly. Policy initiatives will continue, and they are important in providing regulatory signals to governments, but there is now intense focus on making laws and developing regulations that are binding.
In Europe, countries both inside and outside the EU are on a similar energy transition path. The policy endgame is climate neutrality by 2050, but as regulation takes time to yield results, the EU and other countries have set interim targets.
Geopolitical events mean that some targets have been brought forward. Most countries want to reduce reliance on oil and gas very quickly by encouraging, amongst other things, more renewable energy production and a faster switch to electric vehicles.
Mitigating climate change remains the overarching ambition, so the wider policy agenda encompasses not only the transition from fossil fuels, but also the phase out of climate-damaging products such as fluorinated gases.
The guiding principle of much of our approach to the energy transition is sector coupling. This involves linking the energy production and consumption of key sectors such as buildings, transport and utilities, and making the most of renewable energy.
Download our report to see how sector coupling works and can be applied to buildings and road transport.
