| The European Commission has launched a strategy to protect people in the EU from ‘fossil-fuel price shocks’ and accelerate the expansion of ‘homegrown clean energy’. The strategy notes that the latest fossil-fuel crisis, triggered by the Iran war, has already cost the EU an additional €24bn for imports of oil and gas. Carbon Brief has identified 44 specific actions in the AccelerateEU package, ranging from an ‘ambitious’ new electrification target through to filling up the bloc’s depleted gas storage. (See the internative table below.) The proposals are meant to ensure the EU has enough fuel in the short term, to protect consumers from price rises and – in the longer term – to curb reliance on oil and gas. Many EU nations are already spending billions to provide immediate relief to their citizens amid the energy crisis, which was sparked by the US-Israeli attack on Iran in February. With its new 16-page plan, the commission has set out an initial blueprint to shift the bloc towards a more resilient future, including a proposal for tax changes that favour electricity over gas as part of a drive to incentivise clean technologies. However, much of the plan relies on European governments taking up the proposals and changes to EU-wide taxation will depend on the full support of all member states. Why has the commission launched AccelerateEU? What actions have been proposed? What happens next? Why has the commission launched AccelerateEU? On 28 February, the US and Israel launched an attack on Iran, triggering a war and sparking an energy crisis. Iran is a major oil producer and much of the world’s liquid natural gas (LNG) exports transit through the region. Shipping through the critical strait of Hormuz has been paralysed and direct attacks by both sides on fossil-fuel infrastructure, including some of the world’s biggest oil and gas facilities, have paused production. This pushed oil prices over $100 a barrel for much of March. Whilst they have now dipped below that benchmark following a ceasefire agreement, they remain elevated and uncertain – for example, a report of an attack on a ship in the strait earlier this week led them to briefly spike over $100 again. Moreover, there is a widespread fear that markets are not accurately pricing the level of risk posed by an extended conflict. A 21 April article in the Economist was titled: ‘Global energy markets are on the verge of a disaster.’ To manage the impact of the surge in prices seen so far, countries around the world have announced a range of measures to protect consumers. Carbon Brief tracked more than 200 policies from 60 nations over the first month of the war, including cutting fuel taxes, implementing driving bans and fuel rationing, and boosting domestic renewable-energy construction. Earlier this week, the UK government announced a series of measures to ‘double down on clean power’ in response to the unfolding energy crisis. AccelerateEU is the European Commission’s proposal to provide ‘immediate relief to European households and industries, especially the most vulnerable ones, while putting Europe on a steady pathway to energy independence’. It is a response to a request by EU heads of government at the 19 March European Council meeting to present ‘targeted temporary measures to address the recent spikes in the prices of imported fossil fuels arising from the crisis in the Middle East’. The proposal includes both short-term and structural measures with longer-term effects to ‘further reduce dependency on volatile fossil-fuel markets’. It highlights that ‘coordination is key’ and proposes a range of ‘timely, targeted and temporary measures’. AccelerateEU prioritises the shift to homegrown clean energy, ‘stepping up’ the electricity grid and boosting investment. The strategy stresses that this is the second time in less than five years that such a crisis has hit Europe, following Russia’s invasion of Ukraine in 2022 and the subsequent ongoing war. While Europe is less directly exposed to the conflict in Iran than the Ukraine war, its heavy reliance on oil and gas imports still leaves it vulnerable to surging prices. For example, the commission notes that since the escalation of the conflict in February, the EU has spent an additional €24bn on energy imports due to higher prices. The European Commission states that this is ‘a strong reminder of the need to accelerate electrification’ as ‘the current crisis is also a call… to end exposure to fossil-fuel price shocks and import dependencies’. In a statement, Ursula von der Leyen, president of the European Commission, said: ‘The choices we make today will shape our ability to face the challenges of today and the crises of tomorrow. Our AccelerateEU strategy will bring both immediate and more structural relief measures to European citizens and businesses. ‘We must accelerate the shift to homegrown, clean energies. This will give us energy independence and security, and mean we are better able to weather geopolitical storms.’ What actions have been proposed? Carbon Brief has identified 44 distinct actions in the commission’s plan, ranging from affirmations of existing policies to entirely new initiatives. The commission has divided its proposed measures into five key ‘areas of action’, which are: Improving EU-wide coordination; Protecting consumers and industry; Accelerating the shift to homegrown clean energy and electrification; ‘Stepping up our energy system’ through measures such as grid improvements; Boosting investment for the energy transition. Some of the measures, particularly those involving coordination between member states, focus on fossil fuels. Examples include working together to fill gas storage facilities and ensuring the full use of domestic oil refineries. However, roughly half of the actions set out by the commission focus specifically on scaling up clean energy or boosting electrification across the EU. The table below includes all of the actions laid out in the AccelerateEU plan, including target dates and descriptions by the commission of what each one would entail. By summer, the commission says it will set out an electrification action plan, including an ‘ambitious’ electrification target and various measures to ‘remove barriers to the electrification of the industrial, transport and building sectors’. Central to the commission’s strategy is a proposal to overhaul the EU’s taxation system so that it favours electricity over gas. It plans to introduce a legal proposal for this change in May, but passing this would require unanimous approval from all member states. Media coverage of the commission’s proposals noted that it has ‘stopped short’ of introducing a windfall tax on oil and gas company profits, of the kind used during the 2022 energy crisis. However, the commission says it will ‘assist and provide best practices’ for any member states that choose to implement such taxes domestically. Some of the AccelerateEU measures – such as updating the EU emissions trading system (EUETS) – were already underway prior to the energy crisis, but could contribute to its goal of curbing reliance on fossil fuels. Some proposals focus on securing aviation fuel, amid warnings that Europe will soon be running low. The commission will map out existing fuel supplies and provide guidance to the aviation industry on how to deal with shortages. Many of the proposals set out in AccelerateEU involve the commission playing a supportive role, but leaving decisions up to member states. The commission says it will relax state-aid rules to allow member states to ‘implement targeted, temporary emergency measures’ for sectors that are hit hardest by the energy crisis. Countries across Europe have already taken domestic actions to protect consumers and industry from energy price rises and an annex document contains various proposals for ideas to provide ‘immediate relief’. This includes targeted relief on energy bills for vulnerable households, reducing the costs of public transport and delaying the retirement of nuclear power plants. It will be up to member states which of these policy options they choose to implement. What happens next? The majority of the measures outlined by the European Commission are set to come into force in April or May 2026. (See the table above for dates). On 23-24 April, the measures will be discussed by EU leaders at the informal European Council meeting in Cyprus. Subsequently, EU energy ministers will receive a catalogue of energy-saving and efficiency measures at a meeting on 13 May. This will be based on an assessment of the most efficient measures taken since the 2022 energy crisis triggered by the Ukraine war. It will set out ways nations can rapidly reduce oil and gas consumption in the short term. AccelerateEU also includes reference to various pieces of work already being undertaken by the commission to support decarbonisation, for example, updates to the EUETS. The commission will consult with member states on this update ‘soon’, before adopting a legislative proposal by 31 July. This will build on changes that have already been proposed to the market stability reserve. The commission notes that AccelerateEU ‘is one part of the commission’s dynamic response’ and ‘will evolve as the situation develops’. Beyond what is already outlined in the proposals, the EU is looking at ways to mitigate the impact of the Iran war on agriculture, aviation and other sectors. The European Commission will present a fertiliser action plan on 19 May, according to Reuters, to ‘accelerate decarbonisation and address affordability issues made more urgent by the knock-on effects of the Iran war on an already tight market’. It is reportedly ‘mulling jet fuel imports from the US and new minimum reserve quotas as it eyes options amid a supply crunch due to the Iran conflict’, according to Al Jazeera. Euractiv says the European Commission ‘is rejecting demands to clamp down on air travel’ in response to the crisis. Q&A: What the EU’s new industry and ‘Made in Europe’ rules mean for climate action EU policy | 05.03.26 Analysis: EVs just outsold petrol cars in EU for first time ever Energy | 27.01.26 Q&A: European Commission’s proposal to cut EU emissions 90% by 2040 EU policy | 03.07.25 Q&A: What does the new German coalition government mean for climate and energy? Emissions | 11.04.25 The post Iran war: EU strategy sets out 44 actions to limit ‘fossil-fuel price shocks’ appeared first on Carbon Brief. |