State of European Industrial Energy & Decarbonization 2026

European industry runs increasingly on electricity, and the electricity feeding it is getting cleaner. Eurostat data show industry's energy use stabilising after a sharp fall in 2023, electricity overtaking natural gas as the leading industrial fuel, and renewables approaching half of EU power generation. The European Environment Agency separately records a steep drop in emissions from energy and industry. This report compiles the verified EU open-data figures on where European industrial energy and decarbonisation stand in 2026.

Industry energy use fell sharply in 2023, then stabilised

2024 total8835 PJ
EU final energy consumption in industry, 2024 (Eurostat). 2023 saw a ~5% fall; 2024 was +0.1%.

Source: Eurostat — Final energy consumption in industry - detailed statistics (2026)

Final energy consumption in EU industry declined by about 5% in 2023 — driven by high energy prices and weaker output in energy-intensive sectors — before stabilising in 2024 with a slight 0.1% increase to 8,835 petajoules. The 2023 contraction reflects both genuine efficiency and demand destruction, so the flat 2024 reading is better read as a plateau than a recovery. Distinguishing structural efficiency gains from temporary output cuts remains a live point of analyst debate.

Electricity is now the leading industrial fuel

Electricity33.3%Natural gas31.9%Renewables & biofuels11.3%Oil & petroleum10.4%Solid fossil fuels5.5%Derived heat5.5%Non-renewable waste2.1%
EU industrial final energy consumption by fuel, 2024 (Eurostat).

Source: Eurostat — Final energy consumption in industry - detailed statistics (2026)

In 2024, electricity accounted for 33.3% of EU industrial final energy use, narrowly ahead of natural gas at 31.9%. Renewables and biofuels reached 11.3%, oil and petroleum products 10.4%, solid fossil fuels 5.5%, derived heat 5.5% and non-renewable waste 2.1%. Electricity edging past gas matters for decarbonisation: it means a growing share of industrial energy can be cleaned simply by greening the grid, while the remaining gas, oil and solid-fuel share — close to half — is where harder process-heat and feedstock challenges concentrate.

The grid is greening and industrial emissions are falling

45.4%202347.5%2024
Renewable share of EU gross electricity consumption (Eurostat).

Source: Eurostat — 2024: nearly 50% of EU electricity came from renewables (2026)

Renewables supplied 45.4% of EU gross electricity consumption in 2023 and rose to 47.5% in 2024 — nearly half of all power. Alongside this, the European Environment Agency recorded total EU net greenhouse-gas emissions falling about 8% in 2023, to roughly 37% below 1990 levels, with stationary emissions covered by the Emissions Trading System down some 17% in a single year, led by the energy-supply sector. Industrial decarbonisation and grid greening are reinforcing threads here, though year-on-year falls partly reflect lower output and so should be read with reference to the underlying production cycle.

FAQ

What is the main energy source for European industry?

As of 2024, electricity is the single largest fuel in EU industrial final energy consumption at 33.3%, narrowly ahead of natural gas at 31.9% (Eurostat). Together they account for roughly two-thirds of the mix, with renewables and biofuels at 11.3%.

How much of EU electricity comes from renewables?

Renewables supplied 47.5% of EU gross electricity consumption in 2024, up from 45.4% in 2023 (Eurostat) — close to half. Because electricity is now the leading industrial fuel, a greener grid directly lowers a large share of industrial energy emissions.

Sources

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