EU Climate and Energy Policy after the Energy Crunch

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Publication Date December 2023
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The spike in energy prices in 2021-22 prompted some unusual emergency policies at EU and national level. While these came with large fiscal costs and dubious market impacts, Europe survived the shock with overall limited macroeconomic trouble, as opposed to a feared industrial meltdown. The temptation to keep in place price suppressing measures to keep volatile prices in check should be avoided. The EU should focus instead on long-term reforms needed to reduce its dependence on fossil fuels. These include reforms facilitating investments in energy efficiency, renewables and power grids. But investments in such European public goods needed to involve both private and public investors. EU-level funds for climate investment and the energy transition remained fragmented and overall inadequate to meet decarbonisation goals: the EU should rationalise its budget and make it climate action proof, putting its money where its climate leadership ambitions are.

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EPRS At a Glance: March 2023: PE 745.693: Renewable energy in the EU
EPRS Briefings : April 2023 : PE 747.099: EU strategic autonomy: Four energy crisis challenges

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