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State of Energy Union

ENERGY POLICY

State of Energy Union 2021


In 2021, the EU Commission published the State of the Energy Union 2021, that it takes stock of changes and progress in the implementation of EU energy and climate policies, including energy union through its 5 pillars, on the road to climate neutrality by 2050.

Obviously, the war events that began in February 2022 risk slowing future progress and also blocking some transitions, albeit temporarily.

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Achieving European goals requires wiser use of energy and effective measures to combat climate change. The goal of achieving a transition to a low-carbon, safe and competitive EU economy remains valid, although coal may be needed in the short to medium term.

The 2021 State of the Energy Union highlights the following points:

  • In 2020, greenhouse gas emissions decreased by 31% compared to 1990 (both due to pandemic and decarbonisation policies)
  • Renewable energies overtook fossil fuels as the EU's main energy source in 2020 (38% of EU electricity, 37% from fossil fuels and 25% from nuclear 25%). Overall EU energy mix close to 22% on average;
  • EU primary energy consumption decreased by 1.9% and final energy consumption by 0.6% in 2019 compared to 2018;
  • Increase in dependence on net energy imports: 60.6% in 2019, 58.2% in 2018, to 56% in 2000;
  • Subsidies for fossil fuels have fallen to € 52 billion from € 56 billion in 2012. This is due to lower COVID-19 consumption, but will increase if coal is used due to the war in Ukraine;
  • To date, nine Member States have phased out coal;
  • Energy prices have fluctuated violently. First they contracted and then they surged: wholesale electricity prices increased by 230% on an annual basis with a moderate impact increase on retail prices until September 2021 (+11% EU average) 11. And this above all due to the increase in the price of gas;
  • Public spending on research and innovation in clean energy in Member States continues to be lower than in 2010, but national and EU funding for recovery for research and innovation in clean energy may partially offset this amount;
  • Energy poverty: 31 million people in the EU in 2019;
  • Adoption of the European climate law and the "Delivering the European Green Deal" package proposed by the Commission in mid-2021;
  • Member States' plans for recovery and resilience are expected to boost climate-related investments of at least EUR 177 billion 17 and promote the reforms needed to support the climate and energy transition.


The State of the energy union 2021 report is accompanied by a wide range of reports and annexes outlining the progress made in different fields of energy and climate policy.

  • Energy subsidies in the EU
  • Study on energy subsidies and other government interventions in the EU, Subsidy factsheet per country
  • Progress report on the competitiveness of clean energy technologies
  • Staff Working Document(2021)307 parts 1-5
  • Climate Action Progress Report
  • Staff Working document(2021)298
  • Fuel quality report
  • Report on the functioning of the carbon marke
  • Staff Working document(2021)308
  • State of the energy union reports 2015 - 2020
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Some figures

Due to the pandemic, the rise of consumption and the war in Ukraine, the whole world is subject to widespread energy stresses and this is pushing the EU to accelerate its energy transition to depend more and more on renewable sources.

Let's see the recorded situation in detail.
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  • CO2 emissions: -31% compared to 1990
  • Main source of energy: renewable energies, 38% of the electricity produced in the EU (fossil fuels 37% and nuclear 25%).
  • Renewable energy sources in the overall EU energy mix: 22%,
  • EU primary energy consumption: - 1.9%
  • Dependence on net energy imports in 2019: 60.6% (58.2% in 2018 and 56% in 2000)
  • Fossil fuel subsidies: € 52 billion (€ 56 billion in 2019)
  • ​Energy prices: drastic decrease in 2019 and tail in electricity prices in 2020. Then wholesale electricity prices increased by 230% yoy with a moderate increase in retail prices until September 2021 (+11% EU average)
  • Gas price: price hike due to the recovery in global demand in 2021, with an effect on the price of electricity nine times greater than the effect of the increase in the price of carbon observed in the same period;
  • Public spending on research and innovation in clean energy in Member States continues to be lower than in 2010, but national and EU funding for clean energy research and innovation can partially offset this. situation;
  • Energy poverty: Affecting up to 31 million people in the EU in 2019, with persistent differences between Member States and income levels.

Source:  European Union, http://www.europa.eu/, 1998-2023
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