The Ecologic Institute, together with partners in the European Climate Neutrality Observatory (ECNO), has published the third flagship report State of EU progress to climate neutrality. Based on more than 150 indicators across 13 building blocks, the 2025 assessment shows that the EU is advancing towards its 2050 climate neutrality goal. Positive momentum is visible in the expansion of clean technologies, with solar power becoming the EU’s largest single source of electricity for the first time. Jobs in renewable and environment-related sectors are also growing, and carbon dioxide removal is moving – albeit slowly – in the right direction.

Bottlenecks threaten the transition

Despite this progress, major hurdles remain. Financing gaps amounting to EUR 344 billion in 2023, weak governance frameworks, and heavy fossil fuel import dependencies continue to hold back the transition. Agricultural policy lags behind consumer trends, while social disparities such as energy poverty persist. The report concludes that while the EU is on its way, the current pace is insufficient to reach climate neutrality by 2050 – and calls for decisive policy action in the next EU cycle to accelerate the transition.

Launch event

The findings were presented at a digital launch event on 3 September 2025, where Eike Karola Velten and Matthias Duwe discussed the results with representatives from the European Parliament, the European Commission, and the business community. The full launch is also available as a recording, allowing those who missed the live event to watch the discussion in full.

Further information and downloads

Download the full 2025 Flagship Report

Read the Executive Summary

Watch the launch event recording

ECNO website

Contact at Ecologic Institute

Eike Karola Velten
Email: eike.velten@ecologic.eu 

Ecologic Institute is an independent, academic think tank for environmental research and policy analysis. Since its founding in 1995, Ecologic Institute has been dedicated to improving environmental policy, sustainable development and policy practice. We strengthen the European and international dimensions in research, education and environmental policy discourse.

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