THE EUROPEAN ENERGY MARKET UNDER SEVERE DEPRESSION

Abstract

Energy transition policy is at the center of European action from 2019 and the implementation of the Green Deal for Europe. The initial challenge was simple: reduce the use of fossil fuels and advocate some form of energy sobriety, in order to achieve the goal of carbon neutrality by 2050. However, the goals of energy policy have evolved and diversified over the past five years: the health crisis has reminded all member states of the need to have European strategic autonomy in many areas, including energy. The war in Ukraine thus reinforced the need for member states to limit their dependence on Russian gas. Thus, the Union is forced to move away from a form of naivety, limiting any dependence on hydrocarbons from unreliable third countries or authoritarian regimes. Russian gas imports to the European Union fell from 40% to 9% of total gas imports during 2022. Finally, the rise in energy prices during the economic recovery after the health crisis, exacerbated by Russian aggression in Ukraine, strongly reminded of the need to have instruments to protect consumers in the face of increased fluctuations and invoices of energy prices. Energy policy must necessarily include social components, to enable the most insecure and vulnerable households and communities to meet their energy needs. The distressing situations of the winter of 2022-2023, with a tripling of energy bills and a sharp increase in unpaid bills, should not be repeated, according to European politicians.