The Energy Transition in the European Union

The European Union (EU) is navigating a complex landscape of defence, energy transition, and geopolitical challenges, with a clear focus on strengthening its strategic autonomy and global influence. In response to escalating security threats and shifts in U.S. foreign policy, the EU introduced the Readiness 2030 plan, a transformative initiative aimed at mobilising up to €800 billion for defence infrastructure over the next four years. This ambitious programme encompasses key elements such as fiscal flexibility to increase defence spending, joint defence projects, and advancements in air and missile defence systems, drones, artillery, and cyber capabilities. The EU’s participation in the European Sky Shield Initiative further strengthens its collective defence by integrating national air defence systems into a unified network. On the energy front, the EU is committed to being a global leader in the energy transition, with projections for adding 89 gigawatts of renewable energy capacity by 2025. This includes 70 GW from solar and 19 GW from wind power, highlighting the EU’s dedication to achieving carbon neutrality. The Clean Industrial Deal, a €100 billion initiative, aims to boost the competitiveness of EU industries, particularly in clean technologies like hydrogen, which are pivotal to decarbonisation. Geopolitical tensions, such as the ongoing conflict in Ukraine, have prompted the EU to reassess its defence and energy strategies. In response, it has pledged over €21 billion in military aid to Ukraine, while also evaluating ways to reduce energy dependencies within the bloc. These multifaceted efforts are ensuring that the EU remains a powerful force in shaping the future of global energy, security, and trade, while reinforcing its commitment to sustainability, security, and resilience amid complex international dynamics.