Right before the festive season, Brussels was busy wrapping up some of the last policy releases of the year. Before we dive into 2026, let’s have a look at what was unveiled at the end of last year, and what it means for electrical contractors and European energy and competitiveness goals.
Release of the Grids Package
On 10 December, the European Commission released the European Grids Package, designed to strengthen Europe’s energy infrastructure and boost resilience. The initiative tackles long-standing bottlenecks and aims to prepare the energy system for the rapid uptake of clean technologies.
A key objective of the package is accelerating permitting for renewable energy projects, a topic EuropeOn’s Vice-President, Emma Elheim Karlsson, highlighted during a high-level dialogue with Commissioner Dan Jørgensen at the European Sustainable Energy Week (EUSEW). Faster, smarter permitting will be critical to ensuring Europe can meet its clean energy ambitions.
A not-so-electrification-friendly Automotive Package
The European Commission also released the expected Automotive Package, which sparked controversy due to its decision to reverse the ban on the sale of new combustion engine cars by 2035.
Under the proposed rules, car manufacturers will need to reduce emissions by 90% by 2035, which is expected to lower projected electric vehicle sales by 25%. The remaining 10% of emissions can be offset: 3% via e-fuels and biofuels, and 7% via green steel.
This means that carmakers could continue selling combustion engine cars despite the EU’s goal to have the last polluting vehicles off its roads by 2050. According to the NGO Transport & Environment, “this will divert investment away from electrification at a time when European manufacturers urgently need to catch up with Chinese EV-makers.”
The package also proposes decarbonisation measures for company cars. However, it still allows hybrids and only applies to large firms. This is just the beginning, as the Council of the EU and the European Parliament will now review the Commission’s proposals in detail.
A provisional agreement on the European Climate Law
The Council presidency and European Parliament representatives reached a provisional agreement on amending the European Climate Law (ECL).
EU leaders agreed on a -90% emissions reduction target by 2040. However, Member States can meet 5% of this target by purchasing carbon certificates from third countries.
The delay of ETS2 was also included, giving more time to prepare for the carbon tax. This decision was also highly controversial. According to the European Environmental Bureau, postponing ETS2 by a year would deprive the EU of roughly €50 billion in revenues over 2027–2032.
In November 2025, Martin Böhm, ZVEH Vice-President and EuropeOn Board Member, represented ZVEH in two high-level meetings with industry leaders and EPP policymakers, where participants expressed strong support for ETS2 and criticised its postponement.
Affordable Housing Plan
Together with the Automotive Package, the Commission also released its Affordable Housing Plan, aiming to increase the supply of affordable, sustainable, and quality housing, with coordinated action across EU countries.
Key objectives include boosting housing supply through new builds and renovations, reducing costs and administrative burdens, and supporting energy efficiency to lower bills. Some of its proposals include streamlining administrative procedures linked to EU housing rules and promoting best practices, such as digital planning and permitting, at all levels of government.
