Europe’s clean-energy transition could ease costs and dependence

With households under pressure and public spending a source of political dispute, those losses consume money Europe needs elsewhere. Politicians who campaign on the cost of living must show they can reduce it; overlooking climate damage and fossil-fuel dependence means ignoring two forces pushing costs higher.

Electrifying transport, heating and industry with homegrown, low-carbon power offers an alternative. Clean sources supplied 71% of EU electricity in 2025, and wind and solar together generated more than fossil fuels for the first time. But progress varies. Spain’s renewable investment has reduced how often gas-fired plants set wholesale electricity prices. Since the gas-price shock in March, prices have stayed far lower there than in Italy, where gas still sets them more frequently. Italy’s main business lobby, Confindustria, has urged faster renewable deployment, warning manufacturers could move to countries with cheaper electricity.

Europe’s next steps require steady policy and investment. China’s more than 15 years of clear goals and stable policy have helped companies build expertise and supplier networks in clean technology. Europe will need time to develop similar capabilities, and investors need confidence that demand will continue to grow. Decisions by MEPs in 2027 on the carbon market and the next seven-year budget will shape that confidence. A credible Emissions Trading System could encourage greener production, with its revenues helping fund industrial modernization and clean power.

The EU can also support energy independence by defending the proposed 35% climate and environmental spending target and ensuring the European Competitiveness Fund can help low-carbon industries expand. Coordinated investment in grids, storage and interconnectors would connect Spanish solar power with North Sea wind and help balance changing weather. Regions need funding for infrastructure that creates jobs.

Beyond the EU, countries are seeking cooperation on green manufacturing, supply-chain diversification, carbon pricing and emissions rules for traded goods. The article argues that Europe’s climate-policy influence remains significant, and says weakening methane rules under pressure from oil and gas companies could carry consequences. Following through on the transition at home, it says, can encourage other countries to act alongside the EU.