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4.127. More than half of the EU's energy needs are covered by imports. Indeed, dependency on energy imports increased from about 44.0% of gross available energy in 1990 to 55.1% in 2017. The highest dependency rate is for crude oil (86.7% in 2017), followed by natural gas (74.3%), and solid fossil fuels (43.9%). In 2017, the lowest dependency rates were recorded for Estonia, Denmark, Romania and Sweden, driven by a combination of energy-efficiency gains and/or a switch to renewable resources. Malta, Cyprus and Luxembourg were almost entirely dependent on primary energy imports, with dependency rates of over 95.0%.

4.131. On 3 March 2010, the Energy 2020 strategy on climate change and energy was proposed by the European Commission, with the following interrelated and mutually supportive targets (also known as the "20-20-20" targets) : 20% reduction in greenhouse gas (GHG) emissions compared with 1990 levels; 20% share of renewable energy in gross final energy consumption; and 20% cut in energy consumption compared to a 2020 business-as-usual projection. In October 2014, the European Council agreed the 2030 Climate and Energy Policy Framework (see below). The Energy Union Package 2015 set out to give EU consumers secure, sustainable, competitive and affordable energy by overhauling energy and climate policies. Under the Package, there are five mutually reinforcing and interrelated objectives of the EU's energy policy: improving security of energy supply; completing the internal energy market; boosting energy efficiency; decarbonizing the economy and becoming the world leader in renewable energy; and promoting research, innovation and competitiveness (see below).

4.132. In 2018 and 2019, the EU adopted a new comprehensive legislative framework for energy and climate policies. The European Parliament and Council agreed on a revision of the EU's climate legislation, including the Emissions Trading System Directive , both for stationary installations and for aviation, the Effort Sharing Regulation , and the Regulation on Land Use, Land Use Change and Forestry. They also agreed on the eight legislative proposals in the "Clean Energy for All Europeans" package (all of which have entered into force) , and on the ten mobility proposals following the Low-Emission Mobility Strategy. This framework is expected to put the EU on a good trajectory to a climate-neutral economy by 2050

4.133. The 2030 Climate and Energy Policy Framework and the updated legislative framework set out quantified objectives for 2030, namely: to reduce GHG emissions domestically by at least 40% compared to 1990 levels; to reach a share of at least 32% in renewable energy; and to increase energy efficiency by at least 32.5% at EU level. The electricity interconnections target set to improve security of supply by stepping up to 15% in each member State by 2030. A legal framework on the governance of the energy union was put in place, in order to ensure that the 2030 targets are met, individually and collectively. It relies, among others, on a requirement for all member States to establish National Energy and Climate Plans for the period 2021-30. Draft Plans have been submitted and assessed by the European Commission, with final Plans to be provided by end-2019. Binding targets for 2030 were also set to reduce carbon emissions from cars by 37.5% compared to 2021 levels; from vans by 31.0% compared to 2021 levels; and from lorries by 30.0% compared to 2019 levels.

4.138. The transition towards a more secure and sustainable energy system will require major investments in generation, networks and energy efficiency, estimated at some EUR 200 billion annually in the next decade. The private sector is expected to bear the brunt of the costs. The European Investment Bank, the Connecting Europe Facility and the European Structural and Investment Funds already participate. Moreover, the European Fund for Strategic Investments will provide additional support, facilitating access to finance for projects of European significance, such as in energy networks, renewable energy and energy efficiency.

4.139. A key driver of energy security is the completion of the EU internal energy market, which is crucial to providing EU citizens with a supply of secure, sustainable, competitive and affordable energy. The third energy package is one of the main legislative instruments in this regard, further liberalizing the gas and electricity markets. The package entered into force on 3 September 2009 and refers to measures in five main areas: unbundling (separation of the operation of electricity and gas transmission networks from the supply and generation activities); facilitating cross-border energy trade, and assisting National Regulatory Authorities (NRAs) through the establishment of the Agency for the Cooperation of Energy Regulators (ACER); promoting cross-border collaboration and investment through the establishment of the European Networks of Transmission System Operators for Electricity and Gas (ENTSO-E/G); greater transparency and improved record keeping; and access to storage and LNG facilities.

4.140. On 5 June 2019, the EU published Regulation (EU) No. 2019/943 on the internal market for electricity and Directive (EU) No. 2019/944 on common rules for the internal market for electricity. Regulation (EU) No. 2019/943 "sets the basis for an efficient achievement of the objectives of the Energy Union and in particular the Climate and Energy Policy Framework for 2030 by enabling market signals to be delivered for increased efficiency, higher share of renewable energy sources, security of supply, flexibility, sustainability, decarbonization and innovation". It aims at providing the fundamental principles of the future common electricity market, describes how a fair cross-border exchange in electricity should be conducted, and sets the basic rules to encourage free price formation and more flexible generation and demand

4.143. The EU still faces challenges to the completion of its internal energy market. (...) Moreover, while investments made have enabled sector integration, the Commission considers that more needs to be done to bring together the power generation and end-use sectors. According to the Commission, this is necessary to integrate the rising share of renewable energy; heating and cooling; and electric vehicles in the energy system.(...)

4.144. The current energy-efficiency framework consists of several directives, the revision of which is either ongoing or planned. The Energy Efficiency Directive No. 2012/27/EU, as amended by Directive (EU) No. 2019/944, requires member States to set indicative national energy-efficiency targets. As already indicated, the EU aims to achieve at least a 20% improvement in energy efficiency by 2020, and at least 32.5% by 2030.

4.145. In the view of the Commission, there is a need to further intensify efforts to reach the 2020 energy-efficiency target. Indeed, following a gradual decrease between 2007 and 2014, energy consumption started to increase in recent years, and is now slightly above the linear trajectory for the 2020 targets. This is due to colder years 2015 and 2016, but also increased economic activity and low oil prices. While the 2020 target is still within reach, continued increase in energy consumption could put it at risk. As a result, the Commission established a Task Force with member States to mobilize efforts and fully exploit energy-efficiency potentials. In the transport sector, energy consumption and emissions decreased between 2007 and 2013, but are now roughly back at 2005 levels. The positive impact of efficiency policies was outweighed by increased transport activity, and low capacity utilization in road-freight transport.