Translating national energy and climate plans into investment pathways

As the European Union closes in on its 2030 climate and clean energy targets, National Energy and Climate Plans (NECPs) will play a pivotal role in helping the bloc achieve climate neutrality by 2050. Significant progress has been made since the plans were first introduced in 2018, but stronger efforts are needed from Member States to align policies, mobilise private investment, and eliminate fossil fuel subsidies. 

NECPs are the cornerstone of EU Member States’ commitments to meet shared climate and energy goals, serving as detailed roadmaps for decarbonisation, energy efficiency, and energy security. EU Member States are required to submit National Energy and Climate Plans (NECPs), under the Regulation on the Governance of the Energy Union and Climate Action. 

NECPs include a full overview of national energy and climate targets, describing existing and planned policies with their related impacts as well as the investment needs under different scenarios. They provide information across five energy topics: 

•  decarbonisation covering renewable energy, GHG emissions and removals 
• energy efficiency
• energy security
• internal energy markets
• research, innovation and competitiveness. 

NECPs are a vital tool for meeting EU targets with the European Commission stressing that the NECPs “must evolve into strategic investment plans that foster investment predictability, consumer confidence, innovation and market growth for clean technologies” as stated in its ‘Action Plan for Affordable Energy’. With this, the European Commission is affirming one of the core purposes of the NECPs: to enhance regulatory and investor certainty and to fully exploit opportunities for economic development, investment stimulation, job creation and social cohesion. 

This investment-focused approach is essential if plans are to translate into action. As underlined in the EU-wide assessment of the final NECPs released today, unlocking the full potential of these plans requires a sharper alignment with market signals, private capital flows, and industrial policy priorities.

To meet its 2030 climate and energy goals, the EU needs approximately €570 billion in annual investments, which requires a strategic mix of public funding and leveraged private capital. While some Member States have improved investment planning in their NECPs, many still lack clear financing strategies, especially regarding private sector involvement. 

The Commission has issued a clear call to these Member States to step up efforts to unlock the investments needed to meet the targets. Member States are urged to better identify investment needs, adopt supportive tax systems, and use EU funding and technical assistance to implement NECPs and build a competitive, resilient clean economy. The Commission aims to support this through initiatives like the Clean Industrial Deal, boosting InvestEU’s risk capacity, and introducing a Clean Energy Investment Strategy. A reformed Multiannual Financial Framework (MFF) will prioritize clean transition funding, with simplified access via tools such as the Competitiveness Fund and Innovation Fund.

Since 2018, when the first NECPs were submitted, Ricardo has been supporting this policymaking process and our sustainability experts have been working with the industrial sector to accelerate decarbonisation in line with EU targets. 

One of Ricardo’s renowned energy policy experts, Eugenia Bonifazi, will be sharing key insights and specialist knowledge on the topic at the European Sustainable Energy Week (10-12 June 2025, Brussels) in the policy session “An energy union that delivers: National Energy and Climate Plans”, chaired by the Directorate-General for Energy of the European Commission. The focus of the session will be on the key takeaways that can be drawn from NECPs today, and, looking ahead, how we ensure that they guide the investments needed in the three core areas of the EU’s Competitiveness Compass: innovation, decarbonisation and security. Eugenia will bring her experience as the leader and manager of the consortium assisting the European Commission in the assessment of the draft and final NECPs.

Further information

• Find out more about and register for European Sustainable Energy Week including Eugenia’s session, An energy union that delivers: National Energy and Climate Plans 
• Explore how Ricardo supports organisations with their energy transition
• EU-wide assessment of the final updated national energy and climate plans