The European Commission plans to tackle the impacts of the energy crisis by reducing consumption of oil and gas while simultaneously aiming to lower electricity prices. This is outlined in a draft document set to be presented in the coming week, which was reported by Handelsblatt’s Thursday edition.
In the paper, the Commission advises its member states against cutting taxes on gasoline and diesel. Instead, it recommends promoting public local transport, electricity, heat pumps, and electric vehicles to speed up the transition away from reliance on oil and gas. According to the draft, the Commission intends to submit a legislative proposal by May, making EU member states obliged to tax electricity at a lower rate than fossil fuels.
The proposed package from the EU Commission also includes a list of short-term, effective energy-saving measures and state aid. These measures aim to promote social leasing models for heat pumps, electric vehicles, and batteries, push forward geothermal projects with new guarantee instruments, and redirect unused EU funds more quickly into energy investments.
Furthermore, the topic of hydrogen is addressed. Because the rollout of hydrogen is progressing slower than anticipated, the Commission plans to adjust the production criteria for renewable hydrogen in June.