Prior to the Russian invasion of Ukraine, the European Union took approximately 40% of its natural gas supply and over 25% of its imported crude oil supply from Russia. The war caused severe disruption of energy supplies throughout the Union.
The purpose of this resource center is to set out in one comprehensive post the panoply of initiatives and measures the EU and its member states are pursuing to address this disruption and enhance their energy security (including accelerating their use of renewables).
As further detailed in the table of contents below and in the left-pane navigation, we cover (and provide links to practical supporting materials in respect of) the following topics:
- capping prices and taxing extraordinary profits of EU energy producers and providers
- state aid issues
- assuring EU gas supplies
- efforts to diversify the EU’s energy mix
- proposals to cap the price of Russian gas
If you would like to discuss with us how your business may be affected by, and may be able to benefit from, these many initiatives, please do reach out to your usual contact at Cleary Gottlieb.
- CLEARY POST: EC Proposed Reform of the EU Electricity Market
- CLEARY POST: A New Regulation Asks To Use Less Gas for One More Year
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CLEARY ALERT MEMO: European Commission Proposes Definition of Renewable Hydrogen in the EU
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CLEARY ALERT MEMO: The Net-zero Industry Act: The European Commission’s Latest Initiative To Scale up the Clean Energy Transition
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CLEARY POST: Commission adopts State Aid Temporary Crisis and Transition Framework
- CLEARY POST: The Green Deal Industrial Plan: European Commission’s Further Initiative to Foster Green Transition in Europe
- CLEARY POST: Second Amendment to the State Aid Temporary Crisis Framework
- CLEARY POST: Investigations Into the European Fuel Market Continue: The ICA Launches an Inquiry Into the Italian Fuel Market
- CLEARY POST: Commission approved the €1.1 billion Danish scheme to support carbon capture and storage initiatives
- CLEARY POST: Council adopts Regulation to cap gas prices at €180/MWh
- CLEARY POST: Council adopts a broad range of measures to address high gas prices in the EU and ensure security of supply
- CLEARY ALERT MEMO: Commission Launches Consultation on Reform of the EU Electricity Market Design To Support a Clean and Affordable Energy Transition
- CLEARY ALERT MEMO: EU Adopts Fast-track Permit-granting Process for Renewable Energy Projects
a) Caps on revenues of EU companies producing electricity with low-carbon sources (e.g., renewables)
b) Redistribution of profits / taxation of EU fossil fuel companies
c) Retail prices discounts in favour of consumers
3. Managing, and ensuring security of, EU gas supplies
a) Reliable suppliers and diversification of the sources of gas and oil supply to the EU
b) New EU import infrastructure
c) EU Minimum filling storage obligation
4. Diversifying the EU’s Energy Mix
a) Long-term intervention: investments in renewable sources
b) Short-term intervention: reducing / capping gas consumption
c) Short-term and long-term intervention: coal-fired and nuclear power plant revamp
d) Fast-track permit-granting process for renewable energy projects
e) Investor-state arbitration in the energy sector likely as green transition accelerates
5. Mechanisms to lower the prices of gas
a) Resolving oil & gas disputes through arbitration