State of EU Progress to Climate Neutrality

The European Climate Neutrality Observatory (ECNO) reports that while the EU's transition to climate neutrality is accelerating overall, none of its 13 key building blocks are progressing at the required pace. Positive trends are noted in zero-emission vehicle registrations, heat pump sales, and poverty reduction in vulnerable regions. However, the report highlights critical failures in cleantech investment, financial flows, and nature-based carbon removal, while noting that some key policies, such as the 2035 zero emissions target for new cars and vans, have been weakened.

• Overall progress toward climate neutrality is accelerating, with the proportion of indicators classified as 'on track' increasing from 11% in 2023 to nearly 25%. However, none of the 13 building blocks of the transition are currently progressing at the necessary speed.
• Positive developments are evident in the transport and building sectors, specifically through record-high zero-emission vehicle registrations in 2025 and continuing growth in 2026, a partial recovery in heat pump sales in 2025, and a doubling of energy subsidies for energy efficiency between 2021 and 2024.
• Several critical areas are deteriorating or stalled: cleantech investment is declining due to reduced public R&D and scale-up spending; financial flows remain misaligned with climate goals; and carbon dioxide removal is moving in the wrong direction due to declining carbon stocks and slower growth in EU forest area.
• While 85% of tracked objectives have a conducive policy mix, certain key policies have been undermined, including the rollback of corporate sustainability reporting requirements and the weakening of the 2035 zero emissions target for new cars and vans. Additionally, Common Agricultural Policy subsidies continue to support emissions-intensive livestock farming.
• The EU faces emerging dependencies on China for battery components, critical raw materials, and clean technology inputs, alongside a dependence on fertiliser imports for agriculture.

APA

NewClimate Institute (2026). State of EU Progress to Climate Neutrality. http://www.newclimate.org/resources/publications/ecno-2026-state-of-eu-progress-to-climate-neutrality

Chicago

NewClimate Institute. State of EU Progress to Climate Neutrality. 2026. http://www.newclimate.org/resources/publications/ecno-2026-state-of-eu-progress-to-climate-neutrality.

Wikipedia

{{cite report |author=NewClimate Institute |title=State of EU Progress to Climate Neutrality |date=7 July 2026 |url=http://www.newclimate.org/resources/publications/ecno-2026-state-of-eu-progress-to-climate-neutrality |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2026state, author = {{NewClimate Institute}}, title = {{State of EU Progress to Climate Neutrality}}, institution = {NewClimate Institute}, year = {2026}, month = jul, url = {http://www.newclimate.org/resources/publications/ecno-2026-state-of-eu-progress-to-climate-neutrality}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }