Valeria Viti and Cesare Gatti analyze the key developments and the link between the two initiatives, highlighting how the implementation phase will be decisive in enabling the carbon price to truly steer investments toward available energy alternatives.

The year 2026 marks a strategic turning point for European energy and climate policy.

On July 17, the EU Commission presented the Electrification Action Plan and the proposed revision of the EU ETS: two distinct but closely linked initiatives aimed at supporting electrification, steering investments toward decarbonization, and making the path of industrial transition more predictable.

From narrowing the gap between electricity and gas prices to grid efficiency, flexibility, energy storage, and the Industrial Decarbonization Bank: the challenge now is to translate European objectives into concrete and coordinated measures.