Belgium, Brussels: European Union leaders are seeking rapid measures to address soaring energy prices caused by the Iran war, as the continent remains heavily dependent on imported fuels. The closure of the Strait of Hormuz, a key route for roughly 20 % of global oil and liquefied natural gas, has triggered sharp price increases.
European gas prices have risen more than 60 % since the conflict began on 28 February. “This confirms that the EU’s long-term strategy must focus on decarbonising industry,” said Lithuanian Energy Minister Zygimantas Vaiciunas, emphasising the shift to locally-produced low-carbon energy. However, in the short term, he added, “there is no single solution that can easily address this challenge.”
Draft summit conclusions instruct the European Commission to quickly propose a “toolbox of targeted temporary measures” to curb the price spikes. Options under consideration include minor adjustments to the EU emissions trading system (ETS) and encouraging governments to reduce national energy taxes or provide additional state aid for struggling industries.
Any solution carries trade-offs. Increasing state aid risks widening gaps between wealthier and poorer member states, while tax cuts may clash with higher defence spending. The ETS, a central EU climate policy, is a key point of debate: some leaders, including Italy’s Giorgia Meloni and Poland’s Donald Tusk, want more free CO2 permits for industry, while Spain and the Netherlands oppose weakening the system.
Summit discussions will also accelerate the ETS review to July, aiming to balance short-term price relief with long-term climate goals. Additional measures to improve EU competitiveness, including a simplified framework for startups, are also expected.
Source: Zawya
