Threats of blackouts in the UK this past week were a vivid reminder of the fragility of energy supplies
The record spike in energy prices could hardly have come at a worse time for Europe’s ambitious new climate plan, with politicians just beginning to talk about how they’re going to implement the world’s most sweeping emissions-cutting strategy.
“Of course the current level of energy prices has the potential to make discussions on the climate package more complex,” said Peter Vis, a senior adviser at the Rud Pedersen Public Affairs consultancy and a former political aide to the EU’s first climate commissioner. “But to weaken the package due to the energy crunch today would detract from the longer-term solution of reducing Europe’s dependence on fossil fuels without addressing the cause of the gas supply squeeze.
The green package unveiled in July aims to align the economy with a 2030 stricter binding goal of reducing emissions by at least 55% from 1990 levels. The laws need to be approved by the European Parliament and member states in the Council of the EU, with each institution entitled to amending the plan, in a process likely to take about two years.
The gas crisis already hijacked this week’s meeting of energy ministers, called to discuss draft laws to increase the share of renewables and boost energy savings. While the EU has limited powers in the area of energy policy, which largely remains in the hands of member states, the European Commission pledged to publish in the coming weeks guidelines on what short-term tools nations can use in line with the bloc’s law. Options include reducing value added tax and excise on energy.
“That is not sustainable,” Ignacio Galan, the CEO of Spanish power company Iberdrola, said in an interview on Bloomberg TV. “That puts at risk the whole energy transition.”