Economic growth, final energy consumption and emission trends in the European Union member states in relation to the green deal objectives

One of the pressing questions of our time is how to sustain economic growth while reducing final energy consumption and CO2 emissions. This issue is surrounded by much debate, and the literature presents conflicting research findings. The objective of this analysis is to examine the extent to which the European Union Member States (27) can meet policy objectives related to energy decarbonisation, energy efficiency, and the reduction of greenhouse gas emissions, as well as their adaptability to the unprecedented global challenges currently underway. Additionally, we aim to explore whether economic growth is decoupling from environmental degradation. Our analysis will investigate whether Member States can be classified into “core” and “periphery”, along an east-west divide, based on the results of the indicators. We use K-means cluster analysis, and comparative analysis. Two groups of countries demonstrate complete decoupling, where minimal economic growth and reduced CO2 emissions were achieved alongside decreasing energy consumption. The performance of the Member States is heterogeneous, with the “Lagging” group falling significantly behind in meeting climate policy goals. Thus, full adaptation of policy objectives in these areas remains a work in progress.