Speed limits and more home office: Brussels appeals to member states

EU citizens should work more from home and use public transport more often. The EU Commission called for this on Tuesday. It also appealed to the member states to reduce their own energy consumption and expand renewable energies.

Under the motto “Better to be prepared than to be sorry”, Dan Jørgensen, the EU Commissioner for Energy and Housing, referred to a ten-point plan from the International Energy Agency (IEA) at a corresponding press conference. This is intended to help reduce European energy demand in the face of rising oil and gas prices due to the war in Iran. Meanwhile, the Commission is also working on its own package of measures, which it will present soon.

“What we are recommending to the member states is to look at the IEA’s ten-point plan to find inspiration,” said Jørgensen. In addition to increased home office work and the use of public transport, the IEA also proposes refraining from air travel. It would like to reduce the maximum speed on motorways by 10 km/h; and promote car sharing and efficient driving.

Only on Monday, Jørgensen is said to have sent a letter to the responsible ministers of the member states, as Euronews reports. In it, he asked the governments to develop measures to reduce gas and oil consumption. An informal virtual meeting with the ministers followed on Tuesday.

No oil shortage for now

According to the Commissioner, member states do not need to worry about an immediate oil or gas shortage. The EU Commission is working to secure supply and fill reserves. However, higher electricity prices and shortages in the markets – especially regarding diesel and aviation fuel – are to be expected. The effects of the war on the energy market are likely to be felt for a long time to come, according to Jørgensen. An end is not currently in sight.

However, to address the EU's “fundamental vulnerability to external energy shocks”, the dependence on fossil fuels must be overcome and investment made in “homegrown clean energy” instead.

Just a few weeks ago, EU Commission President Ursula von der Leyen advocated for meeting European energy demand through a mix of renewable energies and nuclear power. A proposal that met with a lot of criticism in this form.

Blockade drives up prices

Since the attack by Israel and the USA on Iran, the situation on the global energy market has been tense. The airspace over the country is closed and the Iranian armed forces are blocking the Strait of Hormuz.

Normally, about a fifth of the world's traded oil passes through the strait, which connects the Persian Gulf with the open ocean. It is considered one of the most important trade routes in the world. The IEA expects a loss of production of almost eleven million barrels of oil per day (about 1.7 billion liters). Oil prices have risen by about 50 percent since the start of the war, and gas prices by as much as 70 percent, according to EU information. Brent crude oil recently cost around 119 US dollars per barrel – before the war, the price was around 70 US dollars.

(mho)