Europe is on track to achieve the targets it set out for 2020 in terms of share of renewables, greenhouse gas emission reductions, and energy-efficiency efforts. Apart from a decline in consumption due to the 2007-12 financial crises, this apparent success relies on national interventions such as feed-in tariff support schemes. With the decision of the antitrust authorities to move from regulated support to market-based remuneration schemes, the pace of development of renewables is more uncertain. At the same time, significant low-carbon investments are needed to meet the increasingly ambitious energy and climate change targets for 2030 and 2050. This chapter presents an overview of related policy developments, assesses the level of progress towards achieving these targets and present associated barriers. It concludes by discussing the recent evolution of energy prices in the European Union and the challenges related to the Energy Union project.