Europe leads the world in the shift to renewable energy sources, according to an annual report from Germany research and policy group Agora Energiewende.

The region's use of renewable energy sources surpassed its use of fossil fuels for the first time, it said.

Europe's use of electricity from renewable sources outpaced fossil fuels last year. The report said renewable energy sources provided 38% of the region's energy needs in 2020 - higher than the 37% delivered by fossil fuel sources.

The report said that the European Union nearly doubled its renewable energy sources since 2015 thanks to the increased use of wind and solar power. As of 2020, renewable sources accounted for a fifth of the electricity generated in most EU member countries.

As more EU countries shift to renewable sources, coal power usage declined by more than 20% last year - making up about 13% only of the electricity generated.

"Rapid growth in wind and solar has forced coal into decline - but this is just the beginning," electricity analyst Dave Jones said.

The EU has a goal of phasing out coal power by 2030. The trading bloc plans to eventually phase out gas generation and nuclear power plants. EU member countries have committed to spend on new technologies to meet rising electricity demand - particularly from electric vehicles.

The report said Europe's electrical consumption declined by more than 4% last year as a result of COVID-19 lockdowns. However, renewable energy trends remain unaffected by the pandemic as the region continues to build solar and wind farms.

"Post-pandemic economic recovery must not slow climate action. We, therefore, need strong climate policy - such as in the Green Deal - to ensure steady progress," Agora Energiewende director Partic Graichen said.

With more cities shifting to renewable sources, Europe's carbon emissions have dropped since 2015. The report said the region's electricity emissions hit a record decline and became 29% cleaner, the report said.

EU leaders in December agreed to cut the bloc's greenhouse emissions by more than 55% by 2030.