Outlook 2026: Contributors examine how evolving EU and national energy frameworks, electrification strategies and security-of-supply priorities are shaping the next phase of renewables deployment and decarbonisation across Europe and Canada.
In the second article of a two part feature, Forward Law Review asked leading practitioners to assess how regulatory reform, geopolitical pressures and congestion and permitting challenges are influencing energy markets and transition strategies in 2026.
Here are their predictions for the year ahead.
Agnese Schinelli, counsel at K&L Gates, Milan:
In prospect, the European Union is refining its legal frameworks to accelerate the energy transition while ensuring industrial continuity and addressing transatlantic policy dynamics. The Commission’s Work Programme prioritizes energy as a core policy area, introducing an Electrification Action Plan and legislative packages on energy security. Key trends include full deployment of the Carbon Border Adjustment Mechanism, enhanced grid upgrades, and integration of storage technologies to support firm renewable power.
The updated Renewable Energy Directive is aimed at achieving higher renewable targets and also at giving businesses the legal certainty they need to maintain stable production as they shift to greener energy sources, by streamlining permitting and improving grid integration.
In parallel, the REPowerEU plan has accelerated diversification from Russian fossil fuels, phasing out imports and bolstering energy security. Such EU policy updates resonate on a transatlantic level, aligning with broader Western efforts to create a coherent legal and policy landscape for sustainable energy. This fosters cooperation with the United States and helps companies on both sides of the Atlantic navigate a more predictable and supportive regulatory environment. In essence, the EU is paving the way for a greener future that keeps production steady and harmonizes with transatlantic legal trends.
Anna Kuusniemi-Laine, partner and head of sustainability at Castrén & Snellman, Helsinki:
Views on corporate efforts to advance the green transition and sustainability are currently divided. The shifting geopolitical landscape and increased defence spending have partially diverted investor attention from green transition priorities. Nevertheless, companies already progressing on their sustainability journey remain committed to their course, with interest in the Science Based Targets Initiative continuing to grow among Finnish companies.
Financial institutions will play a crucial role in ensuring that sustainability matters remain a priority for corporate leadership and that greater attention is directed towards value chain responsibility. Following the Omnibus I amendments, the CSDDD will apply only to the very largest Finnish companies. Consumer authorities are expected to maintain heightened scrutiny of unsubstantiated environmental claims.
Melissa Stoesser Young, partner at McMillan, Calgary; and Mike Richmond, partner and leader of the energy group, Toronto.
The energy transition accelerates in 2026, with Canada’s Clean Energy Regulations targeting net-zero emissions by 2050. Binding emissions standards for fossil-fuel generation begin in 2035, supported by tax incentives for clean technology and infrastructure.
Indigenous equity ownership in energy projects is expanding, reflecting reconciliation and sustainable development goals. Provincial and federal initiatives are streamlining approvals for renewables, while methane reduction and carbon capture strategies drive innovation. The sector faces regulatory and operational challenges, but investment in renewables and critical minerals positions Canada as a leader in the global energy transition.
André Lippert, partner and co-head of ESG Germany at CMS, Cologne:
Decarbonisation remains unaffected by reduced ESG obligations in the framework of omnibus. In fact, the European commission intends to speed up decarbonisation efforts. Certainly, this can be traced back to renewables contributing to European energy sovereignty, which is a key element of European policy in the years to come. For the ESG transition and investments into decarbonisation at all levels, this is good news anyway.
Geert de Nijs, partner at Fieldfisher, Amsterdam; and Bob Blankenstein, associate:
The Dutch Energy Act (the Act) has entered into force on 1 January 2026. It replaces both the Electricity Act 1998 and the Gas Act, consolidating them into a single, technology-neutral framework, implementing the EU Clean Energy Package, the Dutch Climate Accord.
The Act modernises Dutch electricity and gas legislation to support the transition to a decarbonised and decentralised, multi-source energy system, while safeguarding affordability, security of supply and consumer protection. It updates rules on grid access and transport rights, tariffs, data governance, and system operation. The Act also strengthens the legal position of active customers, prosumers and energy communities whilst creating regulatory space for innovative energy solutions, including flexible contracts, p2p trade, hybrid connections / cable pooling and local energy initiatives.
One central objective of the Act is introducing legal bases for various instruments to resolve e-grid congestion (a major issue in The Netherlands) like flexible/non-firm transport rights, aggregation, societal prioritization (deviating from first come/first serve) and other enhanced congestion management mechanisms.
The supervisory and enforcement powers of the national energy regulator – Authority for Consumers and Markets – are clarified and expanded, particularly with respect to network tariffs, market oversight, and system reliability.