While renewables' 2020 performance was impressive, especially during a global pandemic, the report warns that the average pace of deployment through the 2020s will need to more than double that of the prior decade if the EU is going to hit its target of a 55 percent reduction in emissions by 2030.

European share indexes opened in the red. The STOXX 600 was down around 0.3% on the day

Natural gas supplies to European consumers over the Nord Stream gas pipeline increased to record-breaking 59.2 bln cubic meters, Nord Stream AG, the pipeline operator, said.

The resumption of work in the Danish offshore Exclusive Economic Zone using the Fortuna comes despite US sanctions imposed Jan. 19 against both the vessel and its Russian owner, KVT-RUS.

The pan-European STOXX 600 index rose 0.2%.

However, Josep Borrell, the EU High Representative for Foreign Affairs, reiterated as recently as Jan. 18 that EU companies involved in the construction of the pipeline were conducting "legitimate business."

"Today, the US is imposing sanctions on the Russia-based entity KVT-RUS and identifying the vessel Fortuna as blocked property," Pompeo said in a statement.

The European Commission is planning to issue new proposals for gas legislation in the last quarter of 2021. EU gas markets are on the cusp of dramatic changes.

The companies could be at risk of U.S. sanctions under existing law if they do not stop work.

Gas from Russia is transmitted by the TurkStream offshore gas pipeline and further across Turkey.