Reducing energy demand is back at the heart of Europe’s strategy against the crisis triggered by the conflict in the Middle East, with EU energy ministers considering a package of measures inspired by the International Energy Agency’s 10-point plan.
On the table are interventions such as boosting telework, promoting public transport, and fuel efficiency in transport, with a particular emphasis on avoiding demand-side policies such as across-the-board tax cuts on fossil fuels. As Dan Jorgensen, the Energy Commissioner, Dan Jorgensen, noted yesterday at the informal Council of Ministers, “the more we can save oil – especially diesel and aviation fuel – the better off we will be.”
Warnings of a prolonged crisis and rising prices
In particularly dramatic tones, the European official warned that Europe is facing a “very serious situation” with no clear end-time horizon. He said that even in the event of an immediate de-escalation, the destruction of energy infrastructure in the Middle East would continue to affect markets.
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