EU Electrification Action Plan: creating demand for clean electricity

Research evidence excerpt

EU Electrification Action Plan: creating demand for clean electricity

Global Research

21 July 2026ab

First Read

EquitiesEMEA Sustainability

EU Electrification Action Plan: creating demand Europe including UK

for clean electricity Global Sustainability

Charles Fruitiere

Analyst

charles.fruitiere@ubs.com

+44-20-7567 4123

Alongside its review of the EU Emissions Trading System (ETS), the European

Commission unveiled a new Electrification Action Plan aimed at accelerating Alisa Dudchak

electricity adoption across industry, transport and buildings. While the plan's Analyst

objective of increasing electrification from around 23% today to an indicative 46% alisa.dudchak@ubs.com

+44-20-7567 0844

by 2040 is not binding, we view the announcement as an important policy signal.

Taken together, the ETS review and Electrification Action Plan suggest a broader Victoria Kalb

shift in European policy: from focusing primarily on decarbonising power supply Analyst

towards accelerating the electrification of energy demand. We see this as vicki.kalb@ubs.com

+65-6495 4584

supportive both for companies enabling electrification and for high-emitting

sectors that must electrify to reduce emissions Mark Freshney

mark.freshney@ubs.com

The plan is supportive across virtually the entire electrification ecosystem represented in +44-20-7568 3989

our EMEA Decarbonisation Ideas List.

Christopher Leonard

We see four key implications for our EU decarbonisation universe:

chris.leonard@ubs.com

1. Grids: The Action Plan reinforces the view that grid infrastructure remains one of +44-20-7568 3958

the primary constraints on electrification. The Commission repeatedly links higher

electrification rates to transmission, distribution, interconnection and permitting