The EU Puts RePowerEU Plan into Action

The EU Rolled Out its RePowerEU Plan According to a new report prepared by the Oxford Sustainable Finance Group, affiliated with the Smith School of Enterprise and the Environment at Oxford University, the EU launched an emergency measures package called the RePowerEU plan to eliminate its dependence on Russian gas by 2028, following the war Russia started in Ukraine. For the EU to end its dependence on Russian gas by 2028, EUR 811 billion in capital is needed. This total includes EUR 299 billion in spending planned for clean energy as part of the European Green Deal, and an additional EUR 512 billion in investment required for renewable energy and heat pumps. According to the report's calculations, approximately 90 percent of the additional EUR 512 billion investment is projected to eliminate the need for gas purchases over the next 30 years and thus ensure a return on investment. To implement the necessary investments in clean energy, the report recommends ensuring the availability of public and private funds to enable large-scale installation of renewable energy sources and heat pumps, improving grid-scale solar and wind energy tenders and streamlining permit processes, rapidly expanding rooftop solar panels, and increasing support for insulation and heat pump installation. Gireesh Shrimali, Head of Transition Finance Research at the Oxford Sustainable Finance Group, stated in his assessment of the report that the transition from Russian gas to clean energy would bring many benefits, saying: "Replacing natural gas with wind and solar energy eliminates the need for future gas payments. By eliminating dependence on the import of a fossil fuel with volatile prices and supply, the EU can ease energy security concerns, address the cost-of-living crisis through energy costs, and advance its goals of reaching net-zero emissions and combating the climate crisis."

The EU paid EUR 5 billion for gas to Russia in the first 4 months of 2023

European Climate Foundation Chief Executive Laurence Tubiana stated that renewable energy sources and energy efficiency are an economical, secure and ethical way to move away from expensive Russian gas, saying: "The political leaders of Germany, Italy and France, Europe's largest gas importers, should undermine Russia's war efforts and provide their citizens with inexpensive, secure and clean renewable energy." Lauri Myllyvirta, Senior Analyst at the Centre for Research on Energy and Clean Air (CREA), shared information that the EU's imports of gas from Russia have declined by three-quarters compared to pre-war levels, continuing as follows: "However, importing much of this gas from other countries leaves the EU's energy supply vulnerable to future geopolitical and supply shocks and continues to fuel climate change. LNG and pipeline gas imports from Russia continue at low levels: CREA estimates that the EU paid EUR 5 billion for gas to Russia in the first four months of 2023. This report demonstrates that solutions to replace imported gas with clean energy not only exist but are also economically viable compared to signing long-term, expensive LNG contracts or investing in new fossil fuel infrastructure."   Source