CLG Europe Statement on Electrification

16 March 2026 - Leading companies and business networks, representing the whole energy value chain from generators to users across the EU, underline the urgency and importance of scaling up clean electrification of the region.

Read the letter in full

For decades, the EU has relied on imported, volatile fossil fuels and today remains more dependent on these sources than many of its competitors. Electrification offers a future‑proof, innovative, secure and clean economic pathway, delivering benefits across society. For businesses, shifting to clean electricity reduces exposure to fossil fuel price shocks and provides more predictable energy costs, strengthening confidence and willingness to invest in electrified solutions.

Why the EU must act now

Technological progress in electrification is advancing faster than expected, creating new opportunities for industry, mobility, buildings and consumers. But Europe’s scale‑up has stalled, while other major economies are investing heavily and positioning themselves as global leaders in ‘electrotech’.

The EU has strong foundations, leading technology, growing consumer demand and rapidly improving cost‑competitiveness. Yet key barriers remain, including:

  • High upfront investment needs despite lower lifetime operating costs.
  • Regulatory instability which hampers investment predictability.
  • Grid constraints slowing deployment and the upgrade of grid connections.
  • Low consumer awareness of the benefits of electrified, fossil‑free solutions.

CLG Europe stresses that policy credibility and regulatory stability are essential to maintain competitiveness and deliver the energy transition already underway.

What CLG Europe calls for

  1. Unlock investment and accelerate deployment, the Electrification Action Plan must deliver bold, immediate and effective action including: Drive electrification uptake through a clear wide industrial and energy strategy which reflects the changed geopolitical and economic context, and reinforces resilient, decarbonised domestic energy supply chains.
  2. Set a clear direction of travel with a 2040 target for electrification of 50% of final energy use at EU level, supported by dedicated key performance indicators for Member States combined with a 2040 energy efficiency goal to ensure fossil fuel consumption declines in parallel with growing electricity demand.
  3. Provide effective and stable incentives, economic signals and targeted funding, including maintaining the ETS integrity, expanding innovative financing tools and prioritising electrification in EU funds and the next Multiannual Financial Framework.
  4. Take full advantage of the digitalisation of electricity distribution networks to enhance flexibility, visibility, resilience and efficient renewable integration.

A call for political leadership

CLG Europe emphasises that the EU has a unique opportunity to build a competitive, secure and clean economy. With clear political direction, stable rules and coordinated investment, Europe can lead the global shift to electrification, strengthening its industrial base while delivering benefits for citizens and the broader economy.

The statement was launched at the 2026 Green Growth Summit which brought together high-level policymakers and business representatives. As a clear sign of increased business momentum, the We Mean Business Coalition launched a programme and foundational paper on Electrification the same day.