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The European Commission will encourage remote working and public transport subsidies to cut fossil fuel use, as countries grapple with the energy price shock from the war in the Middle East.
The Commission will present member states with a string of measures next week to reduce demand, improve energy efficiency and help move to clean power, according to a document seen by the FT. The steps are intended to offer “immediate relief” on high energy prices.
The recommendations are based on measures implemented during the previous energy crisis sparked by Russia’s invasion of Ukraine. They are part of efforts to cut reliance on fossil fuels and encourage green energy use.
Businesses should be encouraged to ensure at least one day of compulsory remote working where possible, the commission said in annexes to a draft communication. It also recommended subsidising public transport and lowering VAT on heat pumps, boilers and solar panels.
Brussels will also set “ambitious” but undisclosed targets for electrification, according to the document, which contains numerous gaps and has yet to be finalised.
In order to achieve electrification targets, Brussels will help member states develop “social leasing schemes for clean and efficient technologies”, including heat pumps, electric cars and small-scale batteries.
Several officials stressed that the measures were recommendations rather than instructions. “If we face energy shortages, it’s our responsibility to make sure citizens know what they can do to cut back usage,” said one EU official. “We’re not micromanaging people’s lives.”
The Commission issued similar advice in 2022, when it encouraged businesses and consumers to lower thermostats by one degree.
The recommendations to cut oil and gas consumption are part of a package to tackle higher energy costs, including electrifying the energy system and increased co-ordination on buying fossil fuels. Other measures, including tackling shortages of jet fuels, are still to be developed, according to the document.
The communication, which will be presented to heads of state next week, is largely nonbinding. But the Commission will bring forward two pieces of legislation to lower costs.
These include laws to tweak electricity market rules in order to drive down the cost of the transportation of electricity. This would include tracking the cost-effectiveness of different grid operators and recommendations on charges for heavy industry.
It will also seek to amend a directive to ensure electricity is taxed at levels below those of fossil fuels. A more ambitious proposal was dropped in 2025, but officials are optimistic the energy crisis will help kick-start discussions on the measure.
The document states that member states will have the flexibility to zero-rate the level of electricity taxes paid by energy-intensive industries.
The latest document also states that the Commission will help member states design price cap and income support schemes, and assess windfall taxes from member states, falling short of requests from some member states for an EU-wide windfall tax.
The two legislative proposals linked to the communication were first reported by Bloomberg.