The European Commission is preparing countermeasures centered on encouraging remote work and supporting public transportation use, as concerns over an energy crisis grow in Europe in the wake of the Iran war.
According to the Financial Times on Wednesday, the European Commission plans to soon propose measures to member states aimed at curbing energy demand, improving efficiency, and accelerating the transition to clean energy. The plan is seen as an effort to reduce dependence on fossil fuels and expand the use of renewables to cushion the energy shock, as the period of high oil prices drags on.
According to the draft so far, the Commission plans to encourage companies to introduce mandatory work-from-home arrangements of at least one day per week where possible. The measure is intended to reduce fuel consumption from commuting. Along with this, the Commission plans to recommend expanding public transportation subsidies and cutting value-added tax (VAT) on eco-friendly equipment such as heat pumps, boilers, and solar panels.
In addition, the package is expected to include policies to expand electricity use in place of fossil fuels, along with measures to strengthen joint purchasing cooperation among member states. Some detailed measures, such as responses to instability in jet fuel supply, are still under review.
This is not the first time the European Commission has implemented energy-saving measures or presented crisis response guidelines. When Russia's invasion of Ukraine triggered an energy crisis in 2022, the Commission rolled out similar measures, including a recommendation to lower indoor temperatures by 1 degree.
However, the policy package to be reported to EU leaders is expected to consist largely of non-binding recommendations. Accordingly, the Commission plans to separately pursue additional legislation to achieve tangible results. Under consideration are a revision of electricity market rules to lower power transmission costs, along with amendments to relevant guidelines to keep taxation on electricity lower than that on fossil fuels.
"The measures build on energy crisis response policies introduced after the Ukraine war," the Financial Times said, adding that they are "aimed at reducing dependence on fossil fuels and accelerating the transition to green energy."
