2026: An electric atmosphere
The year ahead promises to be electric. In a highly unpredictable geopolitical context, the European Union must balance its commitment to the long-term goals of climate neutrality and the immediate attention to security and competitiveness concerns. This puts electrification high on the agenda in Brussels. First, the Grids Package, presented in December 2025, provides for a more centralised approach to planning and is expected to be adopted by the Council in June. Second, before the summer, the Commission intends to present an Electrification Action Plan, which will focus on lowering prices and reinforcing demand.
This is highly necessary. Freeing ourselves from fossil fuels is impactful for and key to our sovereignty, competitiveness, public finances, purchasing power, and security. In a nutshell, existential for Europe.
While electrification is definitely not a silver-bullet solution for reducing our greenhouse gas emissions, it is an essential tool. It is relevant in at least two areas: light mobility, where oil reigns supreme today and it is difficult to imagine an alternative to electric vehicles in the future; and the deployment of heat pumps in buildings as a lever that can be activated for ambitious renovations.
Still, significant challenges remain for the large-scale adoption of these technologies. End of 2025, the European Commission proposed to lower the ambition for the phase out of combustion engine vehicles by 2035 and let go of the long foreseen Heat Pump Action Plan. This puts deployment at risk. It could slow down the car industry’s transition to electric vehicles amid intensifying global competition. It also likely further reduces investment in heat pumps, which was already declining in 2023 and 2024.
In our newsletter, we recommend some useful reading material to help you navigate this electric year, including reports on investments in electrification; housing renovation and heat pumps; the automotive industry and vehicle electrification; and the accessibility of electric solutions for households.
