Europe’s New Energy Landscape: Progress, Promises and the Path Forward

Europe's energy system is undergoing a fundamental shift. Driven by ambitious climate targets, increased interest in energy resilience, evolving policy frameworks and a wave of investment in localised and clean technologies, the region is reimagining how energy is produced, distributed and consumed. From offshore wind farms to hydrogen hubs, the energy transition is well underway — but its future is far from straightforward.

For every milestone reached, critical structural gaps remain. Grid capacity is strained, permitting processes are slow, and many financing models are still evolving to meet the pace of innovation. While progress is undeniable, the path forward requires faster execution, greater coordination and scalable solutions that match the urgency of Europe's climate and energy security goals.

Amid this complexity, John Crane is helping customers across Europe strengthen critical systems and confidently move forward. With advanced mechanical seals, filtration solutions and Asset Condition Management Solutions such as John Crane Sense®, we're helping operators drive efficiency, increase reliability and support Europe's energy future.

Current Landscape and Trends

Infrastructure, regulation and innovation are evolving simultaneously. The speed at which they converge will define Europe's ability to meet its 2050 goals and reduce dependence on foreign energy sources. The following trends reflect a region in motion: one where progress is accelerating, where barriers remain and what it will take to turn momentum into long-term impact.

The Push Toward Decarbonisation

Europe has long positioned itself as a global frontrunner in climate action — and in many areas, it delivers on that ethos. Between 2004 and 2023, the share of renewable energy in the European Union (EU) gross final consumption nearly tripled, increasing from 9.6% to 23%. In transport, a sector historically challenging to decarbonise, renewables climbed from 1.6% to 10.8%, showing steady progress against significant headwinds.

In 2024, Germany generated more electricity from wind and solar than from fossil fuels for the first time. Renewables accounted for more than 60% of its electricity consumption. Meanwhile, greenhouse gas (GHG) emissions across the EU fell by 8.3% in 2023 compared to 2022, marking the steepest annual drop in decades.

But the road to net zero is anything but linear. According to the World Economic Forum, Europe's decarbonisation goals will require a level of regional cooperation, infrastructure planning and behavioural change unlike anything seen before. Success depends upon initiatives such as building smarter grids, developing cross-border energy corridors, reforming tariff systems and deploying financing models that can keep pace with innovation.

Progress is evident, but ambition must now be matched by execution.

Focus on Energy Independence

The benefits of diversifying energy supply and investing in green energy sources extend well beyond reducing carbon emissions. Because the region doesn't have nearly enough fossil fuels on its own territory to meet demand, the EU is uniquely dependent on foreign energy imports to function. In 2022, imports accounted for 62.5% of Europe's total energy supply. These numbers grow even more striking when we examine fossil fuels: 97.7% of petroleum and 97.6% of natural gas consumed in the EU are sourced externally.

By investing in next-generation infrastructure and accelerating the shift toward renewables, Europe can reduce this dependence and keep energy spending within its borders. It's not just prioritising the environment — it's building a more secure future. A more self-sufficient energy system strengthens the EU's economic position, shields it from external supply shocks, and reduces exposure to volatile markets and geopolitical leverage. As global tensions escalate and energy becomes a growing factor in international power dynamics, building a formidable domestic energy base is no longer optional. It's essential for long-term stability, competitiveness, and control over Europe's next chapter.

Emerging Energy Pathways

Europe's decarbonisation and energy security future hinges upon diversifying supply and scaling low-carbon alternatives that can displace fossil fuels at volume.

Hydrogen remains central to this ambition. As a zero-emission energy carrier, it holds promise for decarbonising heavy industry, transport and power. However, progress has been slower than expected. According to Global Energy Monitor, many green hydrogen projects are stalled in early planning, held back by regulatory uncertainty, subsidy gaps and a lack of long-term offtake agreements. The infrastructure is forming, yet deployment lags behind the technology. Still, innovation continues. Electrolyser and compressor technologies are becoming more efficient and scalable. As John Crane's René Leven noted at European Hydrogen Week, operational know-how is advancing rapidly — but without investment to match, momentum will stall.

Ammonia is also emerging as a flexible energy vector. Its promise as both a hydrogen carrier and standalone fuel makes it appealing for sectors such as maritime shipping, where electrification remains challenging. The International Maritime Organisation (IMO) recently approved the use of ammonia as fuel, signalling a step forward in its global adoption. However, most ammonia today is produced from fossil fuels. A shift to green ammonia — ammonia made using renewable hydrogen — will be vital to ensuring its climate benefits are realised.

Biorefinery conversion represents another key opportunity. Across Europe, traditional refineries are being retrofitted to produce biofuels, bio-based chemicals and low-carbon alternatives. These conversions are supported by initiatives like Horizon Europe, which aims to accelerate the region's bioeconomy. While retrofit projects save time and capital compared to new builds, they require advanced sealing systems, emissions controls and process upgrades to meet today's standards for sustainability and operational efficiency.

Carbon capture, utilisation and storage (CCUS) continues to gain traction as a decarbonisation tool for hard-to-abate sectors such as power generation or refineries. The U.K. recently approved its first commercially viable storage facility, while Italy's Eni has launched a CCUS business unit to scale the technology across Europe. But as the International Energy Agency (IEA) notes, infrastructure gaps remain. Permitting, transport networks and business models are still evolving — and without coordination, deployment will fall short of what's needed to achieve net zero goals.

Digitisation's Role in Decarbonisation and Energy Security

By embedding intelligence into industrial systems, digital tools are helping unlock more informed decisions, faster responses and longer asset lifespans across Europe's energy infrastructure. Predictive maintenance, remote health monitoring and AI-driven analytics are already reshaping how facilities operate. Operators can now detect performance anomalies before they escalate, automatically adjust output based on real-time demand and track equipment health down to the component level. The result is a leaner, more efficient energy ecosystem with the potential to reduce emissions, lower operating costs and support reliability at scale.

At the heart of this transformation are platforms like John Crane Sense, which provides actionable insights to help extend the life of mission-critical assets. The platform helps customers monitor mechanical seals and the integrity of rotating equipment remotely without interrupting operations.

The broader potential of the “green” digital transformation is outlined by ICLEI Europe, which highlights how digital tools can reduce energy usage in buildings, accelerate smart grid deployment and make industrial systems more adaptive. As Europe's energy networks grow increasingly complex, digital solutions will be essential in bridging the gap between sustainability goals and operational realities. However, to realise this potential, digital innovation must be supported by policy, funding and skills development.

Public Policy Shaping Change

As Europe navigates volatile energy markets and geopolitical uncertainty, smart policy design is essential for hitting emissions benchmarks and for securing affordable, stable and sovereign energy access. In this landscape, energy transition and energy security are two sides of the same legislative coin. Binding targets are accelerating the rollout of renewables, while funding programs and infrastructure mandates are strengthening cross-border interconnection, clean technology manufacturing and grid flexibility.

Legislation Supporting Decarbonisation

Europe's legislative engine is one of the strongest in the world when it comes to the energy transition. It has set the pace for decarbonisation through a combination of binding targets, integrated energy policy and large-scale funding initiatives. But execution is key.

The European Green Deal represents the backbone of the region's climate strategy. Introduced in 2019, it commits the EU to full climate neutrality by 2050 and sets a legally binding target to cut net GHG emissions by at least 55% by 2030 compared to 1990 levels. This target is now embedded in the European Climate Law, which ensures all EU legislation must align with long-term climate goals.

To scale the industrial capacity needed to meet these ambitions, the EU launched the Green Deal Industrial Plan, backed by €600 billion in funding from the NextGenerationEU recovery package. The plan is designed to accelerate clean technology development by simplifying regulation, speeding up permitting and expanding access to financing. A key part of this framework is the Net Zero Industry Act, which supports domestic manufacturing of technologies such as hydrogen electrolysers, carbon capture equipment and grid-scale renewables.

At a global level, Europe reaffirmed its leadership at COP28, joining nearly 200 countries in pledging to triple renewable energy capacity by 2030 and transition away from fossil fuels. These agreements add weight to domestic targets and raise the bar for fast, coordinated implementation.

To make that possible, the EU is investing in Projects of Common Interest (PCIs) — major infrastructure initiatives that link national energy systems across borders. These projects support the expansion of electricity grids, hydrogen pipelines, smart energy networks and CO₂ transport routes. Projects of Mutual Interest (PMIs) extend this cooperation to non-EU neighbours by promoting broader regional energy integration, though these non-members do not qualify for EU funding.

Still, many of these projects remain in early stages. Delays in permitting, uneven national regulations and infrastructure bottlenecks continue to slow progress. To meet its 2030 and 2050 targets, Europe will need political alignment and policy execution through faster approvals, smarter funding models and consistent delivery at the national, regional and industrial levels.

Legislation Driving Energy Security

Europe's renewed focus on energy security is just as foundational to its evolving energy landscape as decarbonisation — and it's equally underpinned by policy. The European Commission's REPowerEU plan, launched in 2022, exemplifies this shift. Designed to diversify energy sources, enhance efficiency, accelerate the rollout of renewables and ensure affordable access, the plan reflects a deliberate move away from dependency on geopolitical adversaries. It's already producing tangible results: the share of EU gas imports from Russia dropped from 45% in 2021 to 15% in 2024.

Interconnection — the physical linking of national electricity grids across borders — is critical in advancing Europe's energy security. It smooths the variability of renewables, ensuring that surplus energy in one region can meet demand in another. The Trans-European Networks for Energy (TEN-E) policy supports these cross-border infrastructure projects, and its revised regulation puts stronger emphasis on climate alignment and securing supply through a more integrated, resilient grid.

Demand-side management (DSM) offers another powerful tool for balancing the system and reducing reliance on fossil fuels. Rather than cutting consumption outright, DSM shifts energy use to when renewable supply is high — charging EVs, heating homes, or powering machines during times of abundance and easing off during scarcity. The EU's Energy Efficiency Directive and proposed Electricity Market Design reforms both aim to strengthen price signals, empower consumers, and incentivize more responsive energy use across sectors.

Still, progress on both interconnection and DSM remains uneven, slowed by fragmented national priorities, lengthy negotiations and overly narrow economic frameworks. To unlock Europe's full energy potential, future policy must prioritize regional unity, speed and resilience as essential pillars of long-term energy security.

Funding the Future: Capital Investment

Behind all this progress is capital, and Europe is investing at unprecedented levels to accelerate the shift to a cleaner, more secure energy future. In 2023, the EU invested $360 billion in clean energy. Combined with the $267 billion it invested the year before, the union's total investment eclipsed the half-trillion mark in just two years (IEA).

The European Investment Bank (EIB) has committed an additional €45 billion through 2027 to support the REPowerEU plan. At the same time, the NextGenerationEU recovery package is delivering more than €600 billion in funding to help implement the European Green Deal, backing everything from grid upgrades to renewable deployment and low-carbon innovation.

According to the EIB, the EU now spends 10 times more on clean energy than on fossil fuels. That level of financial commitment is essential. However, its impact depends upon how effectively those resources are deployed. Funding must align with infrastructure readiness, regulatory clarity and innovation timelines to ensure projects are not only announced but delivered.

Public investment has already begun to mobilise private capital, particularly in areas like hydrogen infrastructure, offshore wind, CCUS and digital grid technologies. But to reach Europe's 2030 and 2050 targets, this momentum must be sustained and backed by consistent policy, fast permitting and supply chain support.

Helping Translate Innovation into Action

Across Europe, John Crane is helping bring new energy infrastructure to life — supporting customers with technologies that help improve reliability, safety and efficiency at scale. Our work spans a wide range of applications, from maritime shipping to industrial hydrogen production and clean mobility infrastructure.

In Italy, John Crane helped boost the operational reliability of the world's first green container ship, a vessel powered by methanol that aligns with the IMO 2050 emissions targets. Our advanced filtration solutions are integrated into the onboard fuel delivery system, where they protect critical components from contamination and performance degradation. The result: a cleaner, more dependable fuel flow that supports emissions reduction without compromising performance.

In Germany, John Crane's mechanical seal technology played a vital role in enabling the production of renewable hydrogen and oxygen at scale. Deployed in an industrial electrolysis system designed to decarbonise both transportation and heavy industry, our solution supports safe, continuous operation amid high-demand conditions. This project underscores how sealing innovation supports the real-world viability of Europe's hydrogen economy.

Across Europe, John Crane also supplies advanced filtration solutions for hydrogen fuelling stations and tube trailer filling systems — both critical infrastructure for scaling hydrogen mobility. These systems operate under extreme pressure and demand high purity standards. Our filtration technology helps prevent downtime, protects downstream components and maintains compliance with strict safety regulations.

Supporting Europe's New Energy Landscape

As the energy transition accelerates, asset reliability, system efficiency, operational resilience, and energy security are more critical than ever to meet climate targets and ensure stable, sovereign energy access in a rapidly changing world.

John Crane supports this transformation with a comprehensive portfolio of technologies and services designed to optimise performance across the new energy ecosystem. Our mechanical seals and seal support systems safeguard rotating equipment in hydrogen, ammonia, biofuel and renewable power operations, while our advanced filtration solutions protect critical components in hydrogen transport, carbon capture, chemical processing and alternative fuel systems. Power transmission couplings help manage variable loads and reduce energy loss across a wide range of industrial applications. Our digital solutions, including John Crane Sense, provide digital diagnostics and asset performance insights to enable predictive maintenance and real-time equipment health monitoring.

Beyond our technology, John Crane's global network of service centres and expert field teams help our European customers receive tailored support, quick response and local expertise — whether they're maintaining legacy systems or deploying next-generation infrastructure. Our service footprint includes more than 40 centres across Europe and the U.K., ensuring customers get the support they need no matter where their operation is located.

Engineer a Better Future With John Crane

Over the last two decades, policy has reshaped how energy systems are built and financed, renewables are scaling and remarkable progress in reducing emissions and foreign dependence is underway. Investment is flowing, infrastructure is expanding and digitalisation is unlocking new opportunities across every corner of the energy landscape. However, reaching net zero by 2050 will require more than vision.

John Crane is proud to support Europe's energy future with solutions that help enable reliable, efficient execution. Whether enabling cleaner, safer hydrogen production, protecting clean transport systems or enabling innovative asset management, our technologies are helping customers across Europe build energy systems that put the region one step closer to a safer, more secure and more sustainable future.