European Climate Neutrality Observatory, 3 September 2025

2025 Flagship Report

State of EU progress to climate neutrality

The EU has initiated an economy-wide transition to climate neutrality by 2050. While many important on-the-ground developments have accelerated compared to last year’s assessment, the current pace of the transition is still not fast enough.

Investments are lagging, underscoring the need for targeted policy adjustments to provide certainty for businesses and citizens alike. Speeding up the shift to a clean economy is also fundamental to Europe’s long-term competitiveness and security. Deepening geopolitical tensions present a challenging backdrop for this endeavour but also strengthen the case for more decisive action.