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 Temporary Crisis and Transition Framework (TCTF) applies to aid aimed at accelerating the green transition. On the other hand, antitrust and merger rules help to keep the pressure on business to use scarce resources efficiently and to innovate.