With a broad swathe of regulation intended to drive a decarbonised economy already in place, the European Union has one of the toughest stances on emissions reduction in the world, and wants to be seen to take the lead in doing so.

Yet a new report this week has thrown the success of that into question.

The EU’s State of the Energy Union report charts progress being made by member states towards the ambitious target of cutting greenhouse gas emissions by 55 per cent by 2030. It details that huge progress is being made, and that cuts in emissions are on-track, but warns that countries are falling behind on their respective - and related - renewable energy goals

France, Ireland and Austria have not even met their 2020 targets. Green energy in transportation, heating and cooling were identified as particular concerns, along with insufficient investment in renewable hydrogen and biogas production.

The report also points to areas where the lines blur between cutting emissions and improving renewable energy supplies, with housing insulation cited as still poor overall. By contrast, the UK has already been lauded for having met its emissions reduction targets to date and driving the transition to renewable energy, although the pace of change has slowed in recent years, the BBC has reported.

It is a pretty damning assessment of both member state progress and the broader regulatory drive for a decarbonised economy, concluding that despite some positives it is not having the desired impact and risks derailment. But the EU’s ability to stay the course with that action was also under the microscope earlier in the week when former Italian premier Mario Draghi unveiled a European Commission report into its productivity, which he said posed an “existential challenge" without €800 billion of added investment and industrial policy reforms.

The Draghi report outlined that European leaders may be forced to choose between climate, economic and foreign policy goals if the bloc did not become more productive, criticising slow innovation compared to the US and having become “stuck” in a dated industrial environment, with few new companies emerging.

Having headlined ESG programmes with long-term net zero commitments, many large companies may question why the EU is reporting strong action to cut those emissions but effectively pointing a finger at the impact of its own regulation, which may stand to put the brakes on important aspects of climate change mitigation through a sub-par energy transition.

How the new European Commission, leadership of which is still falling into place, responds to the topics raised in the energy report will be watched closely.

In the meantime, national politicians will continue to face criticism over how quickly they are, or aren’t, driving the transition. And if this statement by German’s foreign ministry, in response to former US President Donald Trump’s assertion about the country’s energy policy in this week’s live TV debate, is anything to go by, the war of words may only get spikier.

“Like it or not: Germany’s energy system is fully operational, with more than 50 percent renewables. And we are shutting down — not building — coal and nuclear plants. Coal will be off the grid by 2038 at the latest.”

“PS: We also don’t eat cats and dogs. #Debate2024.”

Now there’s a riposte.