The European Commission proposes to accelerate the transition to green energy. The bill of war for Europe
The European Commission comes up with a series of proposals to accelerate the transition to renewable energy and reduce dependence on fossil fuels. The decision comes as, since the beginning of the conflict in the Middle East, the EU has spent an additional 24 billion euros on energy imports, mainly fossil fuels.
The conflict in the Middle East is strongly affecting global energy markets, with knock-on effects on the economy, industry and households. Even if hostilities cease immediately, supply disruptions in the Gulf will continue in the medium term, the European Commission says.
Member States that use more renewable and nuclear energy and have flexible networks with sufficient capacity and storage are less affected by the crisis and price volatility.
In this context, the European Commission proposes a set of measures, called AccelerateEU, which emphasize the importance of accelerating the transition to domestic clean energy sources. The measures will be discussed at the informal meeting of the European Council in Cyprus on 23-24 April.
The Commission proposes five main directions:
- closer coordination at EU level (gas and oil stocks, emergency measures, fuel availability);
- protecting consumers and industry from price shocks;
- accelerating electrification and use of clean energy (including geothermal, biomethane, hydrogen);
- development of the energy system and networks;
- increasing public and private investment.
The European Commission proposes subsidies for the purchase of electric cars and heat pumps
To protect households and companies, the European Commission is proposing a range of measures, from income support and energy vouchers to social tariffs and tax and VAT reductions for clean technologies such as heat pumps or solar panels. Incentives are also provided for electric vehicles.
In parallel, involvement in energy communities, own energy production and supplier change are encouraged to lower bills.
Member States can also introduce temporary disconnection bans for vulnerable consumers, and energy efficiency is put in the foreground, being considered the cheapest source of energy.
Industry would benefit from additional financial support for decarbonisation, including through a €100 billion fund.
Clear rules on flight cancellations
In the transport sector, the Commission wants to ensure fuel availability and more efficient distribution between states. For this purpose, a fuel observatory will be created, which will monitor production, imports and stocks.
For aviation, the rules on flight cancellations will be clarified and the use of sustainable fuels will be accelerated.
To reduce pressure on fossil fuel imports, the Commission is stepping up coordination with Member States and industry, including through weekly dedicated oil and gas meetings. Among the measures are the filling of gas storages, the use of oil stocks and the coordination of emergency interventions.
“Europe is facing a new energy crisis. It must be a turning point towards energy independence through clean energy,” said Dan Jørgensen, European Commissioner for Energy.
Investing in clean energy
To accelerate the energy transition, the EU proposes major investments in electricity networks and a legislative package for their modernization, along with the establishment of an electrification target and an action plan.
“By the summer, the Commission will present an action plan on electrification. This will include an ambitious electrification target and measures to remove barriers to the electrification of the industrial, transport and construction sectors,” said a press release from the Brussels Executive.
