The energy crisis in the EU, triggered by the conflict in the Middle East, is prompting a strong reaction from authorities and industry. Businesses are pushing back against climate restrictions, which are adding further pressure amid the current chaos. For their part, authorities are trying to support industry and the public without deviating from their climate goals.
EcoPolitic has prepared a brief overview of the changes being discussed in the European Union.
Delay on methane emissions
Five EU member states are calling on the European Commission to postpone the implementation of methane emission intensity rules for two years. These rules are set to take effect in 2030 and are part of a broader EU regulation. It requires oil and gas companies to monitor methane emissions, report on them, and, of course, reduce them.
The countries behind the proposed changes to the regulation include the Czech Republic, Romania, Hungary, Bulgaria, and Slovakia. In addition to the postponement, they are also calling for the simplification of methane restrictions and an assessment of the regulation’s impact on oil and gas supplies. The reason is pressing: the energy crisis that a war in Iran would inevitably trigger.
Methane is a potent greenhouse gas and thus one of the key contributors to global warming. One of the main sources of methane emissions is precisely the extraction of gas, oil, and coal.
Protection against the energy crisis with stimuli for the transition to RES
Europe continues to face severe economic consequences from the blockade of the Strait of Hormuz and its dependence on fossil fuels. Therefore, the European Commission announced the deployment of AccelerateEU, a tool to swiftly provide support to households and industry.
“Our AccelerateEU strategy will provide both immediate and more structural assistance for European citizens and businesses. We must accelerate the transition to our own clean energy. This will give us energy independence and security, and it will also mean we are better able to withstand geopolitical storms,” Ursula von der Leyen emphasized.
Several measures proposed by the European Commission include:
- Coordination. This involves the replenishment of underground gas storages, flexible application of storage rules, or any exceptional releases of oil reserves. The European Commission stresses that all national emergency actions must be closely coordinated.
- Establishment of a fuel observatory. This will monitor production, import, export, and stock levels of transport fuels, enabling quick identification of shortages.
- Consumer support. This refers to targeted and temporary measures such as specific support schemes, energy vouchers, social leasing, and emergency actions for vulnerable sectors of the economy.
- Accelerating the transition to clean energy. By summer, the European Commission is expected to publish an Electrification Action Plan. This will outline measures to remove barriers to adopting renewable energy in industry, transport (including aviation), and construction.
- Development of energy systems. This measure includes accelerating negotiations on the European energy network package and the development of renewable energy infrastructure. The EU is convinced that the rapid deployment of wind and hydro power plants will reduce the impact of the energy crisis on the bloc's countries.
- Increasing investments. The Commission will assist member states in making full use of the available EU funding. This refers to €219 billion within the Recovery and Resilience Facility, as well as private investments, which are to be mobilized through the Clean Energy Investment Strategy adopted in March.
EcoPolitic previously reported that, against the backdrop of rising fuel prices in Europe, electric vehicle sales increased 1.5 times.
