- Europe’s clean energy sources provided a record 47% of the continent’s electricity in 2025, reducing fossil fuels’ share to 29%.
- Solar and wind power have saved Europeans 59 billion euros in fossil fuel imports since 2019.
- Challenges in the transition to clean energy include macroeconomic shocks, geopolitics, and enabling tech ecosystems.
- Despite these challenges, the transition to renewable energy is seen as a marathon towards a sustainable, low-carbon future.
As the world shifts towards renewable energy, Europe is leading the charge. Clean energy sources provided a record 47 percent of the continent’s electricity in 2025, a significant leap forward in the global energy transition. This progress is largely attributed to the political backing of renewables across the spectrum, which has led to a decline in fossil fuels’ share of the power sector to 29 percent. Solar and wind power have been instrumental in this transition, saving Europeans 59 billion euros ($61bn) in fossil fuel imports since 2019, according to a report by Ember, a London-based think tank.
The report also highlighted that solar power achieved record growth, contributing 11 percent of Europe’s electricity and surpassing coal for the first time. Together, solar and wind power have outpaced gas, which has been on a decline for the past five years. These milestones are crucial in achieving Europe’s goal of reducing greenhouse gas emissions by 55 percent relative to 1990 levels by 2030.
However, the transition to clean energy is not without its challenges. Experts warn of hurdles ahead, particularly in the face of the climate crisis. Climate scientist Friederike Otto from Imperial College London emphasizes that the solutions do not depend on something that still needs to be invented. Instead, the knowledge and tools needed are already available; they just need to be implemented.
Innovation and Policy Resets in Renewable Energy Transition
The transition to renewable energy is also being threatened by macroeconomic shocks, geopolitics, and the challenges of enabling tech ecosystems. To address these issues, innovation and policy resets will be needed to ensure that the increasing number of country and company net-zero commitments are achieved in practice.
In addition to the traditional renewable energies, countries like Sweden are innovating by using body heat to keep buildings warm. These so-called passive houses are built without conventional heating systems and are kept warm by the heat given off by their occupants and electrical appliances.
The transition to renewable energy is not just about reducing emissions; it also has significant economic implications. The Biden administration, for instance, finalized a $6.6 billion loan to electric vehicle maker Rivian to build a plant in Georgia, with a focus on creating 7,500 jobs by 2030. The administration also secured a $1.7 billion loan to fund six hydrogen energy production facilities.
Addressing the Challenges in Renewable Energy Adoption
Despite the progress, there are still significant challenges to overcome. For instance, the cost of renewable energy technologies remains a barrier to their widespread adoption. The Intergovernmental Panel on Climate Change (IPCC) estimates that by 2030, more than 20 metric gigatons of GHGs could cost more than $20 per metric ton to abate, and 14 metric gigatons could cost more than $50 per metric ton.
To address these challenges, governments need to implement effective financial mechanisms to drive capital where it is needed. They also need to reform public procurement by setting strict green criteria for contracts, thereby encouraging other actors to improve their own sustainable consumption and production practices.