CLG Europe has submitted a response to the EU’s public consultation on the Revision of the Governance Regulation of the Energy Union and Climate Action
Now that the EU agreed on a 2040 climate target, the Commission is in the process of developing the political framework that will support its implementation and long-term climate objectives. Proposals to establish the framework will be released throughout the year, including a review of the EU Emissions Trading System (EU ETS) by Summer 2026.
One of the central legislative pieces that will guide implementation is the Review of the Governance Regulation on the Energy Union and Climate Action (scheduled for Q4 2026). In a new political context, the governance regulation is expected to go beyond its ‘traditional’ design and scope to potentially incorporate elements like phasing out fossil fuels, links with other priorities like competitiveness, energy security and supply chains for clean and net zero technologies.
On 10 March, CLG Europe submitted the following response to the public consultation: “The revision of the Governance Regulation is an opportunity to develop a coherent and consistent post 2030 climate and energy framework that brings together decarbonisation and the transition towards a competitive and energy secure EU.
The framework should be a clear acknowledgment, that regulatory stability and clarity policy credibility is critical to the EU’s competitiveness. A stable post 2030 framework, with regulatory predictability at its core, is essential to support long-term corporate transition planning, mobilise private investment and unlock capital funding at scale. This framework should be combined with the preservation of the integrity of a robust ETS, as many businesses rely on carbon pricing as a key pillar of their business model.
The framework should align decarbonisation, energy and industrial policy frameworks, supporting, innovation, increased electrification rates and market creation for clean technologies and materials. Plans at EU and national level should provide clear visibility on electrification trajectories, clean energy deployment, energy efficiency improvements, grid expansion and infrastructure needs. The shift to electrification is a move to a future-proof, innovative, secure and clean economy, with benefits across society.
Electrification remains one of the quickest and most effective levers to reduce emissions while enhancing energy security. It also plays a role in improving energy efficiency. Adopting an approach with an electrification target, while preserving the main elements of the governance architecture on energy, will therefore be essential and help steer efforts towards the electrification of end-uses.’
Placing an emphasis on energy efficiency will also help to prioritise the most efficient, cost-effective solutions. This must be accompanied by plans to phase-out fossil fuels, including fossil fuel subsidies.
Sectoral flexibilities should be designed carefully to avoid weakening decarbonisation incentives or delaying action in carbon-intensive sectors. Predictable and coherent frameworks are essential for enabling industry to capture the economic benefits of clean technologies and remain competitive internationally.
A precondition for the achievement of the post 2030 climate and energy framework is the successful implementation of the Fit for 55 Package with regulatory certainty and business and political action.
Policy frameworks must remain socially balanced and supportive of workforce transition, skills development and public acceptance. Clearer and more consistent communication is needed to ensure consumers understand the economic, performance and resilience benefits of electrified, fossil-free goods and services, thereby accelerating demand and market up-take.
Structured engagement with business, investors and policymakers should be embedded in the governance cycle to improve transparency, feasibility and investment confidence."
CLG Europe’s full response can be found on this page: Feedback from: Corporate Leaders Group Europe/CISL Europe