Electric push tests Europe's political realities at COP31
SPY•Europe's plans to accelerate electrification face pressure from reliance on Chinese clean-energy technology, higher energy costs and political resistance. The EU aims to raise electricity's share of final energy consumption to around 46% by 2040, while governments have introduced more than €40 billion in energy tax cuts and subsidies since March.
1. Electrification targets
Turkey is urging governments at COP31 to support a pledge to raise electricity's share of global energy consumption to 35% by 2035, from around 20% today. The EU plans to nearly double electricity's share of its final energy consumption to around 46% by 2040, largely through faster deployment of heat pumps, electric vehicles, solar and wind power. Brussels estimates the target could reduce the bloc's fossil fuel import bill by €260 billion a year by 2040.
2. Reliance on China
China dominates supply chains for many technologies needed to electrify economies, including solar panels, batteries, electric vehicles, magnets and rare-earth materials. The EU's trade deficit with China widened to €359.9 billion in 2025, up more than 20% from a year earlier, with low-cost Chinese electric vehicles contributing to the imbalance. The bloc has raised tariffs on Chinese EVs to as much as 45%, while efforts to build domestic industries and supply chains will take years.
3. Energy cost pressures
Disruptions to Gulf oil and gas exports through the Strait of Hormuz sent European energy prices soaring this year. Since March, Germany, France, Spain and Britain have introduced more than €40 billion in tax cuts and subsidies to cushion households and businesses from higher costs. Some European countries have also considered boosting domestic fossil fuel production or softened policies aimed at curbing fossil fuel consumption.
