EU plan could cut fossil fuel imports by €45 billion in 2025

The EU’s energy plan, according to the analysis of the bloc’s executive branch, could reduce the EU’s spending on fossil fuels by €45 billion this year. This is stated in the report of the European Commission (EC).

On February 26, the EC proposed a number of measures to support European industry, which is struggling with weak demand, cheap imports and higher energy costs than in the US and China.

One of the components of the Clean Industry Agreement presented by the EC is the Action Plan for Affordable Energy. The EU’s energy measures include proposals to speed up the issuance of permits for renewable energy projects, change the way energy tariffs are set, and increase state aid for environmentally friendly industries and more flexible electricity production.

The EC’s analysis showed that, taken together, these measures could reduce EU spending on imported oil and gas by €45 billion in 2025, and by 2030, annual savings would increase to €130 billion. The greatest benefit will come from the faster development of renewable energy and improved energy efficiency, which will curb countries’ demand for oil and gas.

The volume of energy purchases by Europe has fluctuated in recent years. According to the European Commission, the EU’s spending on fossil fuel imports fell to a historic low of €163 billion in 2020 during the COVID-19 quarantine, and then peaked at €604 billion in 2022 after Russia cut gas supplies and gas prices rose sharply.

As GMK Center reported earlier, the European Commission has unveiled the Clean Industry Agreement, a plan to support the competitiveness and future of manufacturing industries in Europe. The agreement positions decarbonization as a powerful driver for the growth of European industry. The Commission is also taking steps to make the regulatory environment more efficient, while reducing bureaucratic obstacles to business.