The European Union (EU) is planning to introduce various measures to encourage remote work and provide subsidies for public transportation as part of their efforts to reduce reliance on fossil fuels. This comes as countries worldwide are grappling with an energy crisis stemming from the war in Iran. According to the Financial Times (FT), on the 19th (local time), the EU Commission will present several measures to EU member states next week to help reduce energy demand, improve energy efficiency, and transition to renewable energy. These measures are intended to provide immediate relief from current high energy prices.
The EU Commission’s recommendations are based on measures implemented during the energy crisis triggered by Russia’s invasion of Ukraine, which also focused on reducing fossil fuel dependence and encouraging the use of renewable energy. According to an annex to the draft statement containing these recommendations, the EU Commission has stated that companies should encourage employees to work from home at least one day a week, if possible. They also recommended providing subsidies for public transportation and reducing value-added tax on heat pumps, boilers, and solar panels. However, these recommendations have not yet been finalized.
The EU plans to set a target for electrification, making electricity the center of all daily activities, although specific figures have not been disclosed. To achieve this electrification goal, the EU Commission plans to support member states in developing social lease schemes for clean and high-efficiency technologies such as heat pumps, electric vehicles, and small batteries.
The energy cost reduction measures the EU intends to propose are recommendations rather than directives. In 2022, the EU Commission had already recommended that businesses and consumers reduce indoor heating temperatures by 1 degree as a similar advisory measure. An EU official stated, “In case of an energy shortage, it is our responsibility to inform citizens of what they can do to reduce consumption” and added, “We are not trying to micromanage people’s lives.”
Meanwhile, the EU is set to pursue various legislative measures to reduce energy costs. This includes adjusting electricity market regulations to lower transmission costs and revising guidelines to ensure electricity is taxed at a lower rate than fossil fuels. The FT described the recommendations to reduce oil and gas consumption as “part of a package of measures to address increased energy costs,” including “enhancing cooperation in fossil fuel purchases” and added, “Other measures, such as resolving the issue of jet fuel shortages, have yet to be developed.”