The European Union imports 82% of its oil and 57% of its natural gas, making it the world's largest importer of both. There is a real possibility that if relations with a particular country(s) deteriorated the EU could suffer an energy crisis, as Russia's block on gas deliveries to Ukraine in 2006 illustrates. The EU's proposed common energy policy encourages a greater diversity of suppliers and supply routes and greater use of renewable energy sources produced within EU borders.

The EU's “post-industrial revolution” or the Energy for a Changing World proposal package is comprised of three pillars:

1.Creation of a true Internal Energy Market
2.Accelerating the shift to low-carbon energy
3.Increasing energy efficiency

In spring 2007, the EU set itself the ambitious and legally binding target of 20% renewable energy by 2020. Member states will participate in fulfilling this goal by setting themselves national targets, according to their level of technological advancement. The move will entail a gradual switch from gas, oil and coal to wind, solar, hydro and bio power and a major investment in energy-saving technology.

The ambitious goals of the second pillar are geared towards limiting global warming to not more than 2 degrees centigrade above pre-industrial levels by 2020 and include several key emission targets pegged to 1990 levels, including...

• 20% cut in CO2 emissions by 2020 and a 50% all carbon emissions from primary energy sources by 2050.
• Replacement of at least 10% of fossil fuels with biofuels by 2020
• An international agreement for an energy regime to succeed the Kyoto protocols
• A liberalisation of the energy industry, including an increase in competition by separating companies from their distribution networks.
• Binding target of 20% of overall energy production sourced from renewables by 2020
• A reduction of overall energy use by 20% by 2020
• European Strategic Energy Technology Plan for developing renewable energy resources including conservation, low-energy buildings, clean coal, carbon-capture technology and 4th generation nuclear.

Accordingly, these goals require massive growth in three renewable energy sectors: electricity, biofuels and heating and cooling. The Commission will seek legislation to promote markets for biofuels and heating and cooling technology and R&D in low-carbon technologies by the creation of a “European Energy Technology Plan and by increasing annual EU spending on energy research by 50% over the next seven years.

Currently, nuclear electricity makes up 14% of EU energy consumption and 30% of EU electricity. The European Atomic Energy Community Treaty (EURATOM) was signed in 1957. At the time, nuclear power was seen as the energy of the future, with plans to build reactors over the whole continent. EURATOM was designed primarily to ensure that all member-states could obtain nuclear fuel for power generation and that supplies would not be used for weapons programmes, with the exception of France and the United Kingdom.

Energy conservation is a key part of saving 20% of primary energy consumption by 2020. If achieved, this goal would reduce total EU energy usage by 13% and save an estimated 100 billion Euro and 780 million tonnes of CO2 per year. Along with more fuel efficient vehicles and comprehensive transit policy, the Commission also proposed programs to address the efficiency of appliances, better heat and electricity generation, improved energy performance in buildings and an international agreement on energy efficiency. 

In September 2010, new Energy Commissioner Oettinger welcomed the adoption of the Security of Gas Supply Regulation by the European Parliament. This calls on EU member states and gas companies to prepare emergency plans in case of supply disruption.