Uche Cecil Izuora
After energy imports have cost European nations some €24 billion since the start of the Middle East conflict, the European Commission has come up with a series of actions to address what it called a “fossil energy” crisis, as the war continues to disrupt global oil and gas supplies.
The Commission estimates the EU has spent an additional €24bn on energy imports since the conflict started, reflecting higher prices and tighter supply.
Commission president Ursula von der Leyen said the bloc must accelerate the shift to domestic and clean energy to strengthen energy security and reduce dependence on imports.
A central element of the plan is closer co-ordination among member states, including on refilling underground gas storage and, if required, emergency releases of oil stocks, as outlined in previous drafts.
To improve oversight of fuel markets, the Commission confirmed it will establish a new EU Fuel Observatory from May 2026. The body will track EU production, imports, exports and stocks of transport fuels, as well as refining capacity and military fuel stocks.
The commission said it will also co-ordinate with EU states, fuel suppliers, airports and airlines on sourcing and distributing alternative jet fuel supplies. Officials are assessing whether jet fuel should be included in obligatory strategic stocks.
Other measures include a temporary aid framework to support the most exposed sectors. The Commission’s Executive Vice President, Teresa Ribera said there was “no alternative” to the Green Deal, the EU’s climate and energy transition strategy, adding that “citizens and businesses are paying the price of our dependency”.
The commission’s final document addresses calls by five EU Ministers for a windfall levy on energy firms, saying member states may take measures to tax windfall profits “to ensure social fairness”. The Commission said it will respect national decisions and share best practices.
The Commission also wants to increase annual renewable electricity deployment to 100GW as part of efforts to cut reliance on imported fossil fuels.
It said it will adopt a legislative proposal by July to update the EU emissions trading system (ETS). But officials declined to give a firm timetable for publishing updated ETS benchmarks, saying only that this would happen “soon”.
Officials said the ETS review would increase clean energy financing via the Industrial Decarbonisation Bank, supported by €100bn, and the Investment Booster funded by 400mn ETS allowances. The commission is also considering greater support for sustainable aviation fuel (SAF) and sustainable maritime fuels through the ETS framework.
While many of the measures are recommendations to member states, changes to the ETS require approval by the European Parliament.
Green MEP Michael Bloss criticised the absence of an EU-wide windfall tax, the lack of concrete consumption reduction measures and delays in setting a firm electrification goal. Speed limits and home-working rules are free and sharply reduce consumption, he said. “Fuel discounts artificially stimulate demand, provide little relief and do so indiscriminately, and in the end cost consumers three times over,” Bloss added.