The European Commission has announced a 46% electrification target for 2040, aiming to double electricity's share of final energy consumption. Alongside this, the EU is revising its Emissions Trading Scheme to direct more carbon market revenue toward industrial decarbonization, though critics note that extending free allowances could weaken the incentive for clean investment. WRI's Clem Perry highlights that the plan lacks a dedicated strategy for heating and cooling, a critical gap as heatwaves intensify. Success depends on modernizing grids, expanding storage, and rewarding flexible demand. The Commission must also tackle taxes and subsidies that make electricity more expensive than fossil fuels.
