The European Union is moving forward with demand-reduction measures centered on expanded remote work and public transportation support, as energy supply concerns spread amid rising Middle East tensions.
The European Commission plans to draft a policy package and present it to member states to cushion the impact of surging energy prices, the Financial Times reported Wednesday. The measures focus on curbing energy demand while boosting efficiency, according to the report.
The draft reportedly includes a proposal encouraging companies to introduce remote work at least once a week. The aim is to reduce commuting and lower fuel consumption. The measure is likely to be pursued as a recommendation rather than a legally binding mandate.
The EU is also considering expanding subsidies to promote public transportation use. The package is expected to include value-added tax (VAT) reductions on eco-friendly equipment such as heat pumps, high-efficiency boilers and solar panels. The move reflects an intent to transform the energy consumption structure itself.
Support measures for energy-efficient technologies, including electric vehicles and small batteries, are also under discussion. The EU is reinforcing its policy stance of expanding electricity use over fossil fuels, while also reviewing joint procurement cooperation among member states to lower energy sourcing costs. Some detailed measures remain at the consultation stage.
The response largely builds on policies implemented during past energy crises. Following Russia's invasion of Ukraine in 2022, the EU recommended energy-saving measures such as lowering indoor heating temperatures.
The current policy package is also likely to consist largely of recommendations. "It is important to present practical steps citizens can take to respond to the energy crisis," an EU official said, adding that the bloc "will not excessively intervene in individuals' daily lives."
The EU is also reviewing additional legislation to strengthen effectiveness. Discussions include revising market rules to lower electricity transmission costs and refining guidelines to keep electricity taxation below that of fossil fuels. Measures to ease electricity cost burdens on energy-intensive industries are also being considered.
"This is a strategy to simultaneously pursue demand management and a green transition amid surging energy prices," the Financial Times said. "A structural response to the era of high oil prices is gaining momentum."
