EU announces massive spending to wean off Russian fossil fuels

European Commission president Ursula von der Leyen says Vladimir Putin’s war is hugely disruptive to the energy market and shows how dependent the EU is on imported fossil fuels.

PHOTO: Ursula von der Leyen unveiling the EU's plan today. @vonderleyen via Twitter

The EU is putting up around €210 billion ($220 billion) in funds to phase out Russian oil and gas by 2027, with around €10 billion ($10.5 billion) going to develop oil and LNG infrastructure.

The remaining 95% will go to renewables, including hydrogen infrastructure, electric power grids, heat pumps and other energy saving measures.

“We must reduce as rapidly as possible our reliance on Russian energy,” von der Leyen said today.

The EU’s share of gas imports from Russia has already been trimmed from around 40% last year, to 26% now, she said.

In its anticipated REPower EU plan for weaning the block off Russian hydrocarbons, three main efforts were laid out:

• Save more energy. The EU’s energy efficiency target for 2030 has been hiked from 9% to 13%
• Accelerate the phase-out of fossil fuels. It now aims for 45% of EU energy to be renewable by 2030, up from 40%
• Speed up the transition to cleaner fuels. Massive spending to develop alternative fuel technologies and infrastructure

The block seeks to increase its energy security by procuring energy products jointly, so member states don’t compete unnecessarily between each other. It will launch a task force immediately and guaranteed a full VAT exemption.

While highlighting this as an opportunity to get more aligned with its previously stated climate ambitions, the EU acknowledges that the break with Russian fossil fuels will necessitate more use of polluting coal, and nuclear power, in the short term.