EU prepares €300 billion roadmap to ditch Russian energy

Brussels, Belgium: The European Union’s executive proposed a €300 billion ($315 billion) package to abandon Russian energy amid the Kremlin’s invasion of Ukraine. It includes efficient fuel usage and faster rollout of renewable energy.

The initiative is meant to help the 27 EU nations gradually get rid off Russian fossil fuels by the end of 2022. The goal is to dwindle Russia’s economy, who is currently the primary fuel supplier to the EU countries, and also strengthen climate policies.

Ursula von der Leyen, the European Commission President, said, “We are taking our ambition to yet another level to make sure that we become independent from Russian fossil fuels as quickly as possible,” when announcing the REPowerEU package.

With the European security shaken due to Russia’s war in Ukraine, the EU is making a long term plan to align its geopolitical and climate interests. The decision comes amid raised concerns about energy supplies that the EU depends on with no immediate replacements, with member nations Poland and Bulgaria cut off by Russia after they refused to pay in Rubles.

The bloc has pledged to try to reduce the import of Russia gas by two-thirds by the end of 2022 and the first step will be to ban Russian coal from the start of August. Meanwhile, the cost of switching to alternative sources has become a cause of concern for Hungary and other landlocked countries, hindering the proposed EU oil embargo.

The REPowerEU estimates an oil-investment funding of around €2 billion for member nations majorly dependent on Russia, in a bid to help Hungary and other landlocked nations.

The two cornerstones of the package are energy savings and renewable sources, mainly funded by an economic stimulus program put in place to ease the bloc overcome the economic crisis triggered by the COVID-19 pandemic. Von der Leyen said the package will offer grants upto €72 billion and €225 billion will be given in the form of loans.

The European Commission said the approval times for renewable projects need to fall to as little as a year or less, which usually take up to a decade to get through red tape.

Source: The Associated Press