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EU says energy plan could cut 45 billion euros off fossil fuel import bill
Published by Global Banking & Finance Review®
Posted on February 26, 2025
3 min readLast updated: January 25, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on February 26, 2025
3 min readLast updated: January 25, 2026
The EU's energy strategy aims to reduce fossil fuel imports by €45 billion by 2025, focusing on renewables and energy savings.
By Kate Abnett
BRUSSELS (Reuters) - Plans due to be published by the European Commission on Wednesday could shave 45 billion euros ($47.3 billion) off the EU's fossil fuel import bill this year, according to the EU executive's analysis.
The Commission is due to propose a raft of measures to support European industries struggling with weak demand, cheap imports and higher energy costs than those in the U.S. and China.
A draft of the EU energy measures, previously reported by Reuters, included proposals to speed up permits for renewable energy projects, change how energy tariffs are set, and increase state aid for clean industries and more flexible power generation.
Taken together, the Commission's analysis indicated the measures could lower the EU's bill for imported oil and gas by 45 billion euros in 2025, and rise to an annual saving of 130 billion euros by 2030.
Most of the savings would come from a faster expansion of renewable energy and increased energy savings, to curb countries' demand for oil and gas.
"They (renewable energy projects) also entail a lot of investments, that goes without saying. But we have to remember that it's also expensive not to do anything," EU Energy Commissioner Dan Jorgensen told Reuters in an interview.
"So we save money by not buying fuel from outside," he said.
The Commission cannot force member states to take up all of the plans - including its recommendation to quickly cut national taxes that inflate energy bills. But Jorgensen said if governments are serious about curbing energy prices, they would need to step up.
"That means implementing rules and regulations that have already been made and exploit the possibilities that they actually have for lowering the prices," he said.
Europe's energy purchases have fluctuated in recent years. The EU's spending on imported fossil fuels plunged to 163 billion euros in 2020 during COVID-19 lockdowns, then peaked at 604 billion euros in 2022 after Russia cut gas deliveries and prices spiked, according to Commission data.
Europe plans to ultimately curb its gas use to meet climate targets. But it also has the challenge of high energy prices and threats from U.S. President Donald Trump, who before taking office in January warned the EU to buy more U.S. oil and gas or face tariffs.
($1 = 0.9510 euros)
(Reporting by Kate Abnett; Editing by Marguerita Choy)
The EU could save 45 billion euros on its fossil fuel import bill this year according to the European Commission's plans.
The Commission plans to propose measures including speeding up permits for renewable energy projects and changing energy tariff structures.
The measures could lead to an annual saving of 130 billion euros by 2030, primarily through increased renewable energy and energy savings.
No, the Commission cannot force member states to adopt all its proposals, but it encourages them to implement existing rules to lower energy prices.
Europe's spending on imported fossil fuels fluctuated significantly, dropping to 163 billion euros in 2020 during COVID-19 lockdowns and peaking at 604 billion euros in 2021.
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