The European Union (EU) on Wednesday announced a set of policy agendas aimed at alleviating the energy crisis caused by the war in the Middle East.
The European Commission presented a toolbox of measures called “AccelerateEU”, designed to help member states manage current pressures and prepare for future disruptions.
In its announcement, the EU’s executive branch said Europe’s energy system remains resilient despite global market shocks. However, it warned that rising prices and fuel shortages were posing risks across the group.
EU seeks flexibility amid global energy crisis
“This should be a wake-up call and a turning point,” EU Energy Commissioner Dan Jorgensen told a news conference in Brussels. He urged Europe to accelerate its transition away from fossil fuels.
He said that even if a diplomatic solution to the standoff between Iran and the United States is found, the effects of the crisis are likely to be felt for years.
The commission said diversified gas and oil supplies, strategic reserves and expanded LNG import capacity have so far helped ensure security of supply. At the same time, it is proposing a set of actions to strengthen resilience across the group, including:
Reduce dependence on oil and gas by reducing taxes on electricity (which could incentivize things like heat pumps)
Accelerate the transition from oil, gas and fossil transportation fuels to household clean energy
Coordinate the timing of gas purchases to avoid price spikes, as well as possibly facilitate the release of oil stocks
A fertilizer action plan to diversify supply sources and support domestic production
Loosen oil and fertilizer subsidy rules, allowing states to subsidize up to 50% of price increases since the war began.
EU Commission steps up coordination to avoid jet fuel shortages
An immediate concern is the availability of jet fuel ahead of the summer travel season. The EU imports about 40% of its jet fuel and about half of those imports pass through the Strait of Hormuz.
“The availability and operational capacity of Europe’s oil refining sector should be maximized to meet current demand, particularly for jet fuel,” a Commission guidance document sent to EU capitals said.
The commission plans to map transportation fuel supplies, coordinate alternative sourcing of jet fuel and propose measures to improve distribution across the bloc.
Transport and Tourism Commissioner Apostolos Tzitzikostas on Tuesday played down concerns about a potential shortage, saying there were no signs of widespread flight cancellations in the coming months. He said Brussels was considering increasing imports from the United States and requiring member countries to hold minimum jet fuel reserves.
The EU has spent an additional €24 billion on energy imports since the start of the Iran war due to rising prices. “These high costs come without obtaining a single extra molecule of energy,” the Commission said.
Edited by: Alex Berry