European Climate Neutrality Observatory (ECNO)

Out NOW: our 2026 assessment report. Europe’s climate transition is showing signs of acceleration – but progress remains too uneven and too slow to strengthen resilience at the pace needed. ECNO's 2026 Flagship Report finds that more than half of the indicators we track have improved their rate of progress compared to last year and that nearly a quarter are now on track to meet climate neutrality. Yet overall progress remains too slow, leaving the EU exposed to strategic dependencies, economic vulnerabilities and worsening climate impacts. Building on this assessment, the report identifies six key actions to strengthen Europe’s resilience while accelerating the transition to a competitive, climate-neutral economy. What needs to happen next? Swipe through to explore the recommended key actions 👇

Europe's clean industrial transition is not only about reducing emissions. It can also make economies more resilient and industries more competitive. Our latest data show that lower fossil fuel demand helped cushion the economic impact of the recent Strait of Hormuz crisis. At the same time, countries with high shares of renewable electricity continue to benefit from more favourable electricity-to-gas price ratios. Together, these findings suggest that resilience and competitiveness are increasingly linked to the transition away from fossil fuels. The data are published in the first quarterly bulletin of ECNO’s Clean Industrial Transition Monitor, which tracks key policy and market developments shaping Europe’s clean industrial transition. 📊 Explore the charts below. 

Europe spent 24% less on imported fossil fuels during the first months of the recent Strait of Hormuz crisis than during the 2022 energy crisis. This is one of the findings from the first quarterly bulletin of ECNO's Clean Industrial Transition Monitor, which tracks key economic and policy developments shaping Europe's clean industrial transition. Among the developments highlighted in the bulletin:  📉 Reduced fossil fuel demand has strengthened Europe's resilience to external energy shocks.  ⚡ Member States with a high share of renewables continue to benefit from more favourable electricity-to-gas price ratios, highlighting the link between clean energy deployment and industrial competitiveness.  🏭 Upcoming negotiations on the EU ETS review and the Industrial Accelerator Act are set to shape investment conditions for Europe's industrial transition.  The bulletin tracks 18 indicators and 7 key policy files under the EU's Clean Industrial Deal. 📊 Explore the first quarterly bulletin:  https://lnkd.in/ddf-nK8w #CleanIndustrialDeal #IndustrialPolicy #EnergyTransition #ClimateNeutrality 

While Poland’s final NECP is still pending, ECNO has now assessed all 27 National Energy and Climate Plans (NECPs) using the latest available data. The findings show that gaps remain: in national contributions to the EU’s renewables and energy efficiency targets, in the projected impacts of policies, and in efforts to phase out fossil fuel subsidies. ECNO’s 2026 update offers the most comprehensive NECP overview to date, building on last year’s assessment of 22 NECPs by incorporating the final five submissions. The result is greater clarity across Member States, alongside continued evidence of persistent challenges. 📊 Where do Member States’ plans fall short? 👇 Swipe through the key updates 🔗 Full analysis: https://lnkd.in/eUC6HGFb Analysis by Eike Karola Velten and Jacob Ferrell (Ecologic Institute), contributions from Markus Hagemann (NewClimate Institute), Gordian Kerner, Nick Evans, Benedikt Decker, and Maciej L. (Instytut Reform)

No EU region or household should be left behind in the clean transition, yet progress is moving too slowly. Energy poverty is rising, and support for vulnerable households remains limited. Job growth in green sectors is encouraging, but fragmented policies and uncertain funding are slowing social gains. ECNO’s latest analysis shows that stronger long-term funding, better coordination of the Just Transition Fund and the Social Climate Fund, and targeted national policies are key to protecting people and regions most affected by the transition to a climate neutral economy. 📙 Read the full report to understand how the EU can deliver a fair and resilient transition: https://lnkd.in/ePdjKpaN 

Renovations, electrification, and heat pump adoption are lagging, slowing the EU’s progress on climate goals in the building sector.     ECNO’s analysis highlights that targeted EU policies and funding – like grants for heat pumps, stronger energy standards, and better access to renovation support – are crucial to speed up the transition and strengthen EU’s energy security and resilience.     📙 Read the full report to see how coordinated action can deliver a climate-neutral and competitive buildings sector: https://lnkd.in/ePdjKpaN 

Recent geopolitical developments underline how exposed Europe’s industry remains and how urgent the transition to a clean and resilient industrial base is. Against this backdrop, the European Climate Neutrality Observatory (ECNO) has published the Clean Industrial Transition Monitor, assessing whether current EU policies are creating the enabling conditions needed for industrial transformation. The findings were presented by Corinna Fürst (Ecologic Institute) and Aneta Stefańczyk (Instytut Reform), followed by a discussion moderated by Matthias Duwe (Ecologic Institute). Industry perspectives were provided by Samuel Flückiger (Hydnum Steel) and Małgosia Rybak, EMBA (Cepi). 🎥 Watch the webinar recording:  https://lnkd.in/dKgu_RS2 📄 Read the full report:  https://lnkd.in/di_2GieP 

EU leaders want to ensure a clean industrial future.  But ambition alone will not deliver it. In its new Clean Industrial Transition Monitor, ECNO shows where there is actual progress in real-world data – and where it is still falling short. Across more than 50 indicators, we find:  → there is momentum in key enabling conditions across the value chain  → but persistent risks remain in demand, infrastructure, financing and raw materials Good news, in principle: The analysis shows that the Clean Industrial Deal already covers much of what is needed in terms of policy support – in principle. Whether it will succeed is down to delivery = ambitious design and effective implementation. Three insights stand out:  🔹 Demand is the missing engine  Without strong lead markets, investment in clean industry will not scale. Proposals have potential but need to be strengthened.  🔹 The ETS remains the backbone of the clean industrial transition  A robust carbon price is essential to close the gap between fossil and clean production, providing financing for the investments needed, paired with CBAM protection.  🔹 Competitiveness depends on consistency  Short-term relief policies risk undermining medium-term industrial strength. Investments may falter or happen abroad. Policymakers need to act with caution.    📊 The Clean Industrial Transition Monitor provides a science-based compass across 11 enabling conditions and the full industrial value chain. 📘 Read the full report: https://lnkd.in/di_2GieP Developed by ECNO with contributions from a multidisciplinary team of experts, including, Aneta Stefańczyk, Aleksander Sniegocki (Instytut Reform), Ciarán Humphreys, Clara Calipel (I4CE - Institut de l'économie pour le climat / Institute for Climate Economics), Mia Moisio, Sarah Jackson (NewClimate Institute), Corinna Fürst, Matthias Duwe, Eike Karola Velten and Jacob Ferrell (Ecologic Institut). 

A reality check for the Clean Industrial Deal: upcoming ECNO analysis out 24 March. We take a look at real-world data trends to track whether the transition is playing out in practice and check whether current EU policies are creating the enabling conditions for industry. Join our online briefing on 24 March 2026, where we will present the Clean Industrial Transition Monitor. Samuel Flückiger (Hydnum Steel) and Małgosia Rybak, EMBA (Cepi) have agreed to join us to discuss the findings from an industry perspective. 📍 24 March 2026 | 14:00–15:30 CET | Online  ✏️ Registration required: https://lnkd.in/dwB6AMAs

EU industry is still far from cutting its emissions fast enough. While resource and energy efficiency are improving, the CO₂ drop from 2023 is largely due to lower production rather than real changes in how industry operates. Data from ECNO shows that strong policies and targeted funding for low-carbon projects are essential to accelerate decarbonisation, boost competitiveness, and support a fair transition.     📙 Read the full report to see how coordinated action can drive the EU towards a net zero industrial sector: https://lnkd.in/ePdjKpaN