EU Sets Out €195 Billion Plan to Phase Out Russian Fossil Fuels
- May 13, 2022
- Posted by: Quatro Strategies
- Category: Legislation
The European Commission prepares to unveil a €195 billion plan to wean the bloc from Russian fossil fuel dependence by 2027. The proposal offers an accelerated rollout of renewables, energy savings and a switch to alternative gas suppliers.
The draft measures could still change before they are published next week. Measures include a mix of EU laws, non-binding schemes, and recommendations national governments could take up, including by revising their plans to spend the EU’s huge COVID-19 recovery fund to free up more funding for the energy transition.
The EU’s executive body expects the measures to require a €195 billion in investments in addition to those already needed for the bloc’s 2030 climate targets, which would help cut Europe’s fossil fuel spending.
The draft proposals show Brussels plans to propose higher targets for renewables and energy efficiency to spearhead the plans.
Goals under discussion include a target for a 45% share of renewable energy by 2030, replacing the current 40% proposal, and a 13% cut in EU-wide energy consumption by 2030 compared with expected use, replacing the Commission’s current 9% proposal.
Other proposals include a change in EU law to speed up permission deadlines for some renewable projects and new EU schemes to jumpstart a large-scale rollout of solar energy and rebuild Europe’s solar manufacturing industry.
The bloc will also outline plans to produce 10 million tonnes of renewable hydrogen by 2030 and import another 10 million tonnes, as well as legislation that defines which types of hydrogen can count as renewable.
The proposal also aims to look at the potential to increase LNG imports from countries including Egypt, Israel and Nigeria and the infrastructure needed to replace Russian gas imports.
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