Energy policy of the European Union

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The energy policy of the European Union focuses on energy security, sustainability, and integrating the energy markets of member states.^[2] An increasingly important part of it is climate policy. ^[3] A key energy policy adopted in 2009 is the 20/20/20 objectives, binding for all EU Member States. The target involved increasing the share of renewable energy in its final energy use to 20%, reduce greenhouse gases by 20% and increase energy efficiency by 20%.^[4] After this target was met, new targets for 2030 were set at a 55% reduction of greenhouse gas emissions by 2030 as part of the European Green Deal.^[5][6] After the Russian invasion of Ukraine, the EU's energy policy turned more towards energy security in their REPowerEU policy package, which boosts both renewable deployment and fossil fuel infrastructure for alternative suppliers.^[7]

The EU Treaty of Lisbon of 2007 legally includes solidarity in matters of energy supply and changes to the energy policy within the EU. Prior to the Treaty of Lisbon, EU energy legislation has been based on the EU authority in the area of the common market and environment. However, in practice many policy competencies in relation to energy remain at national member state level, and progress in policy at European level requires voluntary cooperation by members states.^[8]

In 2007, the EU was importing 82% of its oil and 57% of its gas, which then made it the world's leading importer of these fuels.^[9] Only 3% of the uranium used in European nuclear reactors was mined in Europe. Russia, Canada, Australia, Niger and Kazakhstan were the five largest suppliers of nuclear materials to the EU, supplying more than 75% of the total needs in 2009.^[10] In 2015, the EU imports 53% of the energy it consumes.^[11]

The European Investment Bank took part in energy financing in Europe in 2022: a part of their REPowerEU package was to assist up to €115 billion in energy investment through 2027, in addition to regular lending operation in the sector.^[12] In 2022, the EIB sponsored €17 billion in energy investments throughout the European Union.^[13][14]

The history of energy markets in Europe started with the European Coal and Steel Community, which was created in 1951 to lessen hostilities between France and Germany by making them economically intertwined. The 1957 Treaty of Rome established the free movement of goods, but three decades later, integration of energy markets had yet to take place.^[15] The start of an internal market for gas and electricity took place in the 1990s.^[16]