The revision of the Governance of the Energy Union and Climate Action Regulation is a key opportunity to make EU climate governance more implementation-oriented and more investable.
The current framework, while greatly improving the energy transition planning for Member States, does not sufficiently reflect how the energy transition and climate action are delivered in practice through local and regional action, existing plans, and concrete investment pipelines.
Today, multiple local and regional plans contain valuable data, projects, and investment needs. Yet, they remain poorly connected to National Energy and Climate Plans (NECPs), creating duplication, fragmentation, and missed investment opportunities.
Additionally, only a few member states have organised meaningful multi-level dialogues (as mandated by Article 11) and developed proper investment strategies. The paper argues that while preserving the existing framework of the Energy Union as a stable and coherent foundation, it would be key to make better use of existing local and regional energy and climate transition planning tools and transform them into delivery tools.
This approach can greatly reduce administrative burden for all levels of government and simplify the implementation of plans, thus helping member states to reach their targets.
To address this, the Local Alliance proposes a streamlined governance approach built on four connected and mutually reinforcing elements:
- A permanent multi-level dialogue platform in each Member State, bringing together national, regional, and local authorities (and key stakeholders) to align implementation, identify barriers, aggregate project pipelines, and coordinate investment. Tailored to each Member State’s governance structure and needs, this replaces fragmented consultations with a structured process.
- A territorial chapter in NECPs, based on existing local and regional plans, providing a clear picture of where and how implementation will happen and of the support mechanisms.
- Sectoral pathways that are also territorially informed, linking national targets with local realities across key sectors (buildings, transport, energy, etc.), ensuring that targets are grounded in delivery conditions.
- An investment strategy taking into account local investment and capacity needs, and how they can be financed (including connections with the regional and territorial chapters in the NRPPs).
Across these elements, the paper highlights key enablers for implementation and investment, including improved access to technical assistance, better alignment and aggregation of funding streams, and the removal of systemic barriers.
Finally, it is important to highlight that the proposed elements aim to support the EU simplification agenda by connecting existing plans, data, and processes into a coherent system, reducing administrative burden while improving delivery, investment visibility, and policy coherence. This would make NECPs not just reporting tools, but operational frameworks for implementation, financing, and coordination, enabling the EU to meet its 2040 climate objectives.
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