New Energy Community report: Southeast and Eastern Europe must turn energy transition plans into implementation and investment  

Nine Southeast and Eastern European EU aspirants* have, in large part, laid the groundwork for energy transitions that should achieve EU-aligned decarbonisation targets. As Contracting Parties to the Energy Community Treaty, they are legally bound to do so, through reforms implemented in preparation for accelerated integration into the EU energy market. Taken together, Contracting Parties’ national 2030 greenhouse gas reductions will amount to a 60.9% reduction in net emissions compared with 1990 levels. 

The new report by the Energy Community Secretariat is the first assessment of its kind at Energy Community level, applying an approach comparable to that used by the European Commission to assess EU Member States’ NECPs and monitor their implementation. It examines both the National Energy and Climate Plans (NECPs), which set out pathways towards the 2030 energy and climate targets, and the first national progress reports (NECPRs) measuring their implementation to date. It thus provides detailed, region-wide insights into both the content of the plans and implementation progress.

The findings show that, while the policy framework for the transition is largely in place, the focus must now shift from planning to implementation, backed by significant public and private investment.

 On the one hand, NECPs are sufficiently ambitious and detailed to set out national pathways towards 2030, with the decarbonisation of the energy sector confirmed as a key factor in achieving the 2030 energy and climate targets.  Yet, while NECPs propose measures to accelerate the energy transition, they do not fully harness the potential of regional cooperation, nor do they sufficiently apply the Energy Efficiency First principle, which can lower the cost of the transition; or integrate just transition considerations,  which are essential to ensuring that the energy transition is socially fair and inclusive, particularly for affected workers, communities and regions. According to NECPRs,  while some  Energy  Community Contracting parties appear to be on track towards meeting their obligations, others urgently need to start NECP implementation to align with their 2030 energy and climate target trajectories. These findings, however, reflect only the starting point of NECP implementation. 

Governments across the region estimate that implementing their NECPs will require around €151 billion in investment. Public funding is expected to cover only 10–30% of this amount, making the mobilisation of private capital essential. The report therefore concludes that the next generation of NECPs should evolve from policy documents into investment roadmaps. By linking targets with concrete projects, realistic cost estimates and financing strategies, future plans can provide a stronger basis for governments, investors and development partners to direct resources towards the infrastructure and technologies needed for the transition. 

* Albania, Bosnia and Herzegovina, Georgia, Kosovo*, Moldova, Montenegro, North Macedonia, Serbia, Ukraine