Why Electrification Matters for Climate, Communities and Conservation

Climate – Displacing fossil fuels through electrification, backed by renewables, energy efficiency and a clear phase-out commitment   

Renewables-based electrification can deliver major climate benefits.

Energy supply  accounted for around 27% of EU greenhouse gas emissions in 2022. When emissions associated with both energy generation and energy consumption are considered, the figure rises to 75% of the EU’s CO2 emissions. Decarbonising electricity must therefore go hand in hand with replacing fossil fuels in transport, buildings and industry.

Electrification can reduce emissions by improving energy efficiency and replacing fossil fuel use. Many fossil-fuel technologies waste a large share of their energy as heat,  whereas electric alternatives can provide the same services using much less energy. Electric vehicles, for example, are more efficient than petrol and diesel cars, while heat pumps can deliver three to four units of heat for every unit of electricity consumed. 

By switching to more efficient electric technologies, Europe can reduce the energy needed to power transport, heat buildings and support industrial processes. These efficiency gains can reduce emissions, but the scale of the climate benefits also depends on how electricity is generated. Renewable electricity maximises  emissions reductions and reduces reliance on fossil fuels. Without committing to renewable energy, electrification risks prolonging fossil fuel dependence and locking in emissions. 

The EU must therefore support its electrification ambitions with strong, binding renewable energy and energy efficiency targets. It must also ensure that electrification contributes to decarbonising transport, buildings and industry, rather than allowing growing energy-intensive uses, such as data centres, to absorb additional electricity without sufficiently displacing fossil fuels. Sector-specific targets or key performance indicators should complement an overall electrification target, tracking progress across end-use sectors and ensuring that electrification delivers genuine energy savings and emissions reductions. 

Communities – Supporting energy affordability and empowering consumers 

Electrification, when backed by renewable energy, can also reduce costs for households, businesses and society as a whole. 

Indeed, the more Europe relies on domestically generated renewable electricity, the less exposed it can be to fluctuations in international energy markets. A report by the European Environment Agency (EEA) highlights the potential economic benefits of accelerating renewable deployment and improving energy efficiency. In a scenario aligned with the EU's 2030 climate and energy targets, characterised by a much larger share of wind and solar power, increased electrification of end uses and greater system flexibility, the EU average day-ahead electricity price could fall by 57% compared with 2023 levels, reaching around €39.90/MWh by 20301. 

A renewables-based energy system can also be the most cost-effective option for Europe in the long term. A study published by WindEurope in December 2025 shows that even when accounting for the grids, storage and back-up, a system running on high shares of renewables is the cheapest by far. Scenarios relying more heavily on nuclear, hydrogen or CCS would all be more costly than a renewables-based scenario. By 2050 the differences in costs range from €487bn to €860bn.

Finally, renewable energy can support a more decentralised energy system, creating opportunities for communities to play a more active role in producing, sharing and managing their own energy. Through community benefit schemes, energy communities, cooperatives, rooftop solar and other forms of local generation, citizens can participate directly in the energy transition and, where arrangements allow,  retain more of its economic benefits locally. Combined with storage, demand-side flexibility and smarter electricity networks, decentralisedgeneration can complement the wider European energy system, strengthen local resilience and give communities greater agency over their energy choices.  

Conservation – A smarter, more efficient energy system to limited impacts on nature 

Renewables-based electrification can benefit nature by helping to limit global warming and the pressure it places on ecosystems, species and natural habitats. It can also help reduce the environmental footprint of the energy system itself, if it is aligned with the efficiency-first principle and infrastructure is carefully planned. 

As explained before, electric technologies use less energy to provide the same services than their fossil fuel-based alternatives. Improving energy efficiency reduces the amount of energy needed to meet these needs, helping to limit the need for additional energy generation and infrastructure. Combined with better use of existing electricity networks, this can reduce pressure to expand infrastructure and help limit impacts on land and nature. New power lines, substations and energy installations can occupy land, fragment habitats and disturb wildlife, so limiting these impacts is important. 

Smart grids and demand-side flexibility can help make better use of existing electricity networks and renewable generation. Digital monitoring and improved grid management allow operators to manage congestion and respond to changes in electricity supply and demand. Demand-side flexibility allows electricity consumption to shift to periods when renewable generation is more abundant. This can reduce renewable electricity curtailment, help integrate more renewable energy into the system and make better use of existing network capacity, potentially reducing the need for additional infrastructure.

Where new infrastructure is needed, it is essential to minimise its impact on nature through better planning. Transmission system operators are increasingly using advanced modelling to manage the growing complexity of electricity systems. Incorporating ecological data into these models could help identify infrastructure routes and locations that avoid sensitive areas and minimise impacts on habitats and ecosystems. This would allow environmental considerations to be assessed alongside cost, capacity, reliability and system resilience from the outset, before key infrastructure decisions are made.

Conclusion 

Electrification is the way to go to decarbonise our economies. However, how it is delivered matters: it must be backed by strong renewable energy and energy efficiency targets and a clear commitment to phasing out fossil fuels.

Done right, electrification can help tackle climate change, protect consumers from volatile fossil fuel prices, and support a more efficient and smarter energy system that makes better use of existing infrastructure and limits impacts on land and nature.