Business Europe - Energy and climate transition - Final report

In 2023-2024, BusinessEurope commissioned Compass Lexecon to provide an in-depth analysis of the EU energy system’s transition towards 2050 and its impact on EU competitiveness, and to assess how Europe can achieve its climate and energy targets in a cost-effective way, while being internationally competitive. One message is clear from the report’s findings: a strategic review of EU energy and climate policies is needed to achieve this outcome.

 

The report finds that a massive scale-up of renewable and low-carbon capacity is needed to reduce the energy price gap between the EU and third countries and reach climate neutrality. It also projects that energy prices could remain substantially higher in Europe compared to our international competitors. Therefore, additional policy measures will be needed to secure the competitiveness of European industry, supported by a conducive regulatory framework and a scale-up of private and public investments.