In response to the unprecedented situation, European political leaders should:
- Prioritize even faster electrification to achieve decarbonization and energy independence
- Accelerate the deployment of renewables & other carbon-neutral energy sources
- Enable faster permitting as a matter of utmost urgency to accelerate deployment
- Fast-track the roll-out of electrical heat pumps in buildings and Electric Vehicles in transport
- Develop incentives to boost building renovation & district heating system modernization and phase out subsidies for individual gas boiler whenever economically and technically feasible
- Incentivize solutions for the conversion of clean electricity into hydrogen and other energy vectors
- Keep focus on massively reinforcing our electricity grid infrastructure
- Guard investor confidence and reinforce markets especially now in the current crisis
- Deepen competitive integrated EU electricity markets
- Assess market design and enhance long-term price signals
- Avoid distortive claw-back measures and retail price caps
- 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
- 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
- Take necessary short-term actions to protect customers
- Prioritize measures recommended by the initial EC Toolbox
- Reduce taxes and levies on electricity bills to reduce pressure on retail power prices
- 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
- Take short-term emergency measures to moderate gas demand across key use sectors by implementing firm energy efficiency and saving measures