Presidential statement - Reducing Europe’s fossil fuel dependence

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In response to the unprecedented situation, European political leaders should:

  1. Prioritize even faster electrification to achieve decarbonization and energy independence
    1. Accelerate the deployment of renewables & other carbon-neutral energy sources
    2. Enable faster permitting as a matter of utmost urgency to accelerate deployment
    3. Fast-track the roll-out of electrical heat pumps in buildings and Electric Vehicles in transport
    4. Develop incentives to boost building renovation & district heating system modernization and phase out subsidies for individual gas boiler whenever economically and technically feasible
    5. Incentivize solutions for the conversion of clean electricity into hydrogen and other energy vectors
    6. Keep focus on massively reinforcing our electricity grid infrastructure

  2. Guard investor confidence and reinforce markets especially now in the current crisis
    1. Deepen competitive integrated EU electricity markets
    2. Assess market design and enhance long-term price signals
    3. Avoid distortive claw-back measures and retail price caps
    4. Retain the EU ETS cap aligned with long-term objectives, while carefully exploring increased short-term liquidity via the Market Stability Reserve without undermining overall CO2 pricing coherence
    5. Address the challenges caused by extreme price volatility in the energy commodities derivatives markets by allowing emergency/temporary funding to provide liquidity facilities to clearing banks

  3. Take necessary short-term actions to protect customers
    1. Prioritize measures recommended by the initial EC Toolbox
    2. Reduce taxes and levies on electricity bills to reduce pressure on retail power prices
    3. Address the root cause of price increases by considering how to best cap the wholesale price of gas at a level which truly protects consumers
    4. Take short-term emergency measures to moderate gas demand across key use sectors by implementing firm energy efficiency and saving measures

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