A plan has been agreed to reduce the European Union's over-reliance on Russian gas, which will require countries to find other supplies and accelerate the reduction in use of fossil fuels in homes, buildings, industry, and power networks.
The European Commission issued a statement where it set out broad proposals designed to “make Europe independent from Russian fossil fuels well before 2030”, saying the invasion of Ukraine meant “the case for a rapid clean energy transition has never been stronger and clearer”.
Currently, the EU imports 90% of its gas consumption, with Russia providing around 45% of those imports, as well as 25% of oil imports and 45% of coal imports.
“We must become independent from Russian oil, coal and gas,” said EC President Ursula von der Leyen.
She said the EU needed to “act now to mitigate the impact of rising energy prices, diversify our gas supply for next winter and accelerate the clean energy transition.
“The quicker we switch to renewables and hydrogen, combined with more energy efficiency, the quicker we will be truly independent and master our energy system.”
While Russia's invasion of Ukraine has aggravated the security of supply and sent energy prices soaring, the EC said Europe has sufficient amounts of gas for the remainder of this winter.
Due to the “urgent” need to replenish reserves for next year, the EC proposes that by the start of next October, EU gas storage facilities would need to be filled at least 90%.
Proposals for price regulation, state aid and tax measures have also been made “to protect European households and businesses against the impact of the exceptionally high prices”.
The new plans are in addition to a new set of climate change policies that EU leaders are negotiating in order to try and cut emissions faster by 2030, including slashing EU gas use by 30%.
Frans Timmermans, executive vice-President for the European green deal, said: “It is time we tackle our vulnerabilities and rapidly become more independent in our energy choices. Let's dash into renewable energy at lightning speed. Renewables are a cheap, clean, and potentially endless source of energy and instead of funding the fossil fuel industry elsewhere, they create jobs here.”
Clean energy stocks climbed higher, having already rebounded as speculation about the agreement emerged.Hydrogen-focused companies were notable risers, with Ceres Power Holdings PLC (AIM:CWR, OTC:CPWHF) was up 12% (also boosted by its own news), ITM Power jumped almost 14%, Norway-listed Nel leapt 16% and AFC Energy PLC (AIM:AFC, OTC:AFGYF, ETR:QC8) (AFC Energy PLC (AIM:AFC, OTC:AFGYF, ETR:QC8), AFC Energy PLC (AIM:AFC, OTC:AFGYF, ETR:QC8), AFC Energy PLC (AIM:AFC, OTC:AFGYF, ETR:QC8)) rose 2%.
London newcomer ATOME Energy PLC (AIM:ATOM), which is centered on green hydrogen and bio-methane, has gained 14% over the past two days.
Some wind power and solar power companies also were lifted, with Greencoat UK Wind PLC (LSE:UKW) and Bluefield Solar Income both up 1.5%.