EU drafts plan to electrify industry, cut oil and gas use
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The European Union has drafted a plan to accelerate industrial electrification and reduce reliance on oil and gas, following supply disruptions from the Iran war. The proposal targets a 20% cut in fossil fuel use in manufacturing by 2030. It comes as EU leaders face pressure to secure energy independence.
The Electrification Plan
The European Commission's draft plan, seen by Reuters, aims to electrify industrial processes such as steelmaking and chemical production. It sets a target of 20% reduction in oil and gas use in manufacturing by 2030 compared to 2021 levels. The plan includes €50 billion in public and private investment for grid upgrades and renewable energy projects.
Iran War Disruption
The draft cites the Iran war as a catalyst, which disrupted energy supplies and drove European gas prices to record highs in late 2025. EU imports of Russian gas fell to 5% of total supply in 2026, down from 40% in 2021. The plan accelerates the bloc's shift away from fossil fuels, with a focus on energy security.
What's Next
The European Commission is expected to formally propose the plan in September 2026. It remains unclear whether member states will agree on the investment targets and timeline, given differing national energy mixes and industrial priorities.
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EU drafts plan to electrify industry, cut oil and gas use
