On 17 July 2026, the European Commission presented an Electrification Action Plan together with a review of the EU Emissions Trading System (ETS). The plan aims to raise electricity's share of total energy use in Europe from 23% today to 46% by 2040, making it the first continent powered mainly by electricity.
The goal is to cut fossil fuel imports by up to €260 billion a year, lower energy costs for households and businesses, and create hundreds of thousands of jobs, while the ETS review updates the EU's main decarbonisation tool for a changing economic and political climate.
In practice, this means support for residents and businesses in switching to electric solutions, plans to upgrade local grids, and a roll out of charging infrastructure and renewable heating. To back this up, the EU is offering tools such as social leasing schemes, the Social Climate Fund and the ETS financial instrument to lower the upfront cost of these projects, alongside the EU grids package to speed up grid investments.
The plan also tackles why the switch to electricity has been slow so far. Electricity is often taxed more heavily than gas, so the Commission wants to level that playing field by letting Member States lower network charges and taxes, and by rolling out smart meters faster. It also aims to bring down the upfront cost of going electric, speed up grid connections, and build up European manufacturing and skills so the shift means new, quality jobs too.
For cities, regions and Energy Agencies, this plan is more than a policy announcement. It points to where EU funding and support will be directed in the coming years, and puts them in a central role in delivering the electrification of homes, transport and local infrastructure. Being ready to guide residents and businesses through these changes, and to plan for stronger local grids, will be key to making the most of what the plan offers.
- Publication date
- 29 July 2026
- Author
- European Climate, Infrastructure and Environment Executive Agency