Energy is traditionally the most important sector involved in European Union, as it has a significant impact on all other sectors of the economy and society in Europe. European energy regulations cover competition and state aid, the internal energy market for electricity and gas, improving renewable energy sources, energy efficiency, oil bays security, nuclear energy and security. Reducing CO2 emissions, increasing the use of renewable energy sources and increasing energy efficiency are the main objectives of EU energy policy.
These are elements how to reduce EU dependency on imports of fossil fuels (especially oil and gas), with the EU being one of the largest energy consumers in the world where EU import dependency is somewhere around 53% of total energy needs. Energy projects funded by the EU in Serbia provide security of energy supply, encourage market liberalization and investment in energy infrastructure, improve environmental protection and facilitate efficient trading energy in markets within Europe.