
The production of energy in the EU is spread across a range of different energy sources: solid fuels (largely coal), natural gas, crude oil, nuclear energy, and renewable energy (such as hydro, wind and solar energy). The EU’s strategy towards the progressive decarbonisation of the energy sector through the introduction of renewable, energy efficient, and greenhouse gas emission targets has led to significant results.
A European Energy Union is one of the European Commission's priorities. Reliable energy supplies at reasonable prices for businesses and consumers and with the minimum environmental impact are crucial to the European economy.
Competition policy is not in the lead when it comes to fighting climate change and protecting the environment. There are better, much more effective ways, such as regulation and taxation. Competition policy, however, can complement regulation making our economy greener. State aid rules already encourage governments to invest in renewable energy and support EU countries to pool their investments in Important Projects of Common European Interest (IPCEIs). Furthermore, the Clean Industrial Deal State Aid Framework (CISAF) allows Member States to support the roll-out of clean energy and to support electricity costs in line with the CID objectives, to support the decarbonisation of industry, and to ensure sufficient manufacturing capacity of clean technologies. The CISAF also simplifies support for projects selected but not sufficiently financed by the Innovation Fund and allows Member States to set up funds to de-risk private investments.