Written by Nicolas d’Hanis
Dear reader,
Europe is trying to deal with sustained high energy prices over recent weeks, which some experts warn could develop into one of the most significant energy challenges the EU has faced in decades, driven by escalating geopolitical tensions in the Middle East. In this context, the EU seeks to cope with this challenge by advancing a dedicated roadmap to strengthen the Energy Union and accelerate the shift toward cleaner, domestically produced energy in Europe. This and much more will be explored in our monthly update.
The spotlight
AccelerateEU: Europe’s answers for the Hormuz energy crisis
The European Commission has launched AccelerateEU, a dynamic toolbox designed to further reduce the continents dependence on volatile fossil fuel markets and strengthen the Energy Union by accelerating EU produced clean energy.
Its goals are threefold: accelerating the shift to homegrown clean energy and electrification, protecting both households and industry from volatile energy price shocks, and boosting investment to build a more resilient European energy system.
The initiative comes at a time when the conflict in the Middle East is affecting global markets and pushing up oil and gas prices. This is similar to 2022, when REPowerEU was launched in response to the energy crisis caused by Russia’s invasion of Ukraine.
Curious to know what is in the Communication? Keep reading to find out!
Industrial relief and emergency support
To protect the competitiveness of European industry, the Commission is introducing a suite of timely and temporary measures. A new State Aid Temporary Framework will be adopted to support the economic sectors most exposed to current price spikes. Furthermore, the Commission will assist Member States in designing targeted interventions, such as income support and tax incentives, while clarifying that Member States may implement taxation on windfall profits to ensure social fairness. On 13 May, at the Informal Energy Council in Cyprus, a dedicated catalogue of replicable energy savings and efficiency measures will be presented to help businesses rapidly reduce oil and gas consumption.
Strengthening EU energy system
A resilient energy system requires replacing imported fossil fuels with domestic alternatives, including renewables, nuclear, and biomethane. Central to this shift is a massive increase in storage capacity; the EU aims to expand from 55 GW to 200 GW by 2030, with batteries playing a leading role in managing system flexibility. To support this, the Commission will set formal electrification targets and propose measures to lower the price ratio between electricity and fossil fuels, making clean power the more competitive choice for industrial heating and cooling.
Boosting financial incentives for clean technology
The financial pillar of AccelerateEU focuses on de-risking projects to mobilise the unprecedented levels of private capital required for the transition. In Q2/Q3 2026, the Commission will host a Clean Energy Investment Summit, bringing together institutional investors, industrial leaders, and public financiers. This summit will target immediate, high-impact solutions such as large-scale batteries and industrial electrification. Additionally, Member States will receive support to develop social leasing schemes and financial incentives, such as targeted tax credits, to accelerate the uptake of clean and efficient technologies.
What’s next?
For businesses, AccelerateEU represents a fundamental shift in the European regulatory and financial landscape. The move towards a more geologically and technologically sovereign energy system provides a clearer long-term horizon for industrial planning and investment. By participating in these new de-risking platforms and adopting the upcoming efficiency measures, companies can mitigate their exposure to future energy crises while securing a lead in the clean tech market.
Publyon is closely monitoring these developments to help clients navigate the evolving financial and regulatory landscape of the European energy market. Curious what this means for your organisation? Send us a message and we can discuss!
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Policy updates
Closure of the Strait of Hormuz to have lasting impacts on EU energy markets
On 24 April, the International Energy Agency (IEA) published its Gas Market Report for Q2-2026. In it, they find that the closure of the Strait of Hormuz has led to a fall of almost 20% in global LNG supply, with impacts to infrastructure projected to exceed two years. This has critical impacts on the EU, as more than half of the European energy consumption is dependent on imported fossil fuels.
EU Commissioner Dan Jørgensen expects the high prices to last several years and has argued that the current crisis serves as a stark reminder of the risks of gas dependency and the need to accelerate the rollout of clean energy to reduce Europe’s exposure to fossil fuel imports.
EU institutions agree to Competitiveness Roadmap
On 24 April, European leaders adopted the “One Europe, One Market” roadmap, during an informal meeting of heads of state or government. This roadmap sets out a political and operational commitment to strengthen European competitiveness through 5 priorities: (i) simplifying rules, (ii) integrating the Single Market, (iii) championing strong trade, (iv) reducing energy prices and decarbonising, and (v) supporting the digital and AI transformation.
More specifically, among other initiatives, the Commission foresees in Q2 2026 an adjustment of network charges and taxation to support electrification and lower costs for consumers, alongside the introduction of an Energy Security Package which is expected to tackle security of supply and energy resilience. In Q3 2026, the Commission commits to presenting its review of the EU Emissions Trading System (EU ETS), updating its benchmarks, and proposing new frameworks for renewable energy and energy efficiency. By the end of 2026, the Energy Union governance structure will be updated to facilitate the stepping up of cross-border electricity infrastructure deployment.
MEPs publish their Draft Report on the European Competitiveness Fund
As part of the next Multiannual Financial Framework (MFF 2028-2034), co-rapporteurs Christian Ehler (EPP, Germany) and Dan Nica (S&D, Romania), published their draft report on the European Competitiveness Fund (ECF) on 20 April. The ECF will consolidate industrial and innovation funding and serve as the main fund for decarbonisation projects in the next MFF.
The co-rapporteurs propose increasing the ECF budget to €257 billion (up from €234 billion), with a clearer orientation towards industry, energy, digital, and security. The report earmarks €14.73 billion for energy infrastructure, covering domestic transmission and distribution networks, energy storage, carbon and hydrogen capture, and alternative fuels, and a further €10 billion for industrial decarbonisation and clean technologies.
The presentation of the report is scheduled to take place in the Industry, Research and Energy Committee (ITRE) on 6 May, with an 11 May deadline for amendments. In the meantime, the Cypriot presidency commences discussions within the Council of the EU. The new MFF 2028-2034 is expected to be adopted in 2027.
Commission enforces binding Member State sector-specific emission quotas
In two implementing acts, the European Commission officially established binding annual emission quotas and land-use carbon removal targets for Member States through 2030 to ensure consistent progress toward EU climate goals. These updates define linear reduction trajectories for sectors outside the primary carbon market, including transport, buildings, and agriculture.
Implementing Regulation 2026/893 specifically sets net greenhouse gas absorption limits for 2026–2029, requiring, for example, the Netherlands to manage targets reaching over 3.9MtCO2e annually, compared to over 48MtCO2e/year for France. Simultaneously, Implementing Decision 2026/895 adjusts annual emission allocations based on a comprehensive review of 2021–2023 inventory data to reflect updated environmental performance. For example, the Netherlands’ effort-sharing quota is set to decrease from approximately 79.8 million tonnes in 2026 to 66.6 million by 2030. The framework incorporates flexibility for methodological changes in national inventories, with a major compliance audit scheduled for 2032.
These regulations are now directly applicable across all Member States.
Member States and MEPs intensify calls to adjust EU ETS rules ahead of key reform
Several EU Member States and political groups are pushing for significant adjustments and delays to the EU Emissions Trading System (ETS) to safeguard industrial competitiveness and social stability. For example, France opposes the use of international carbon credits, while Germany favours their inclusion as a safeguard and calls for a slower post-2036 phase-down of allowances, alongside a delayed phase-out of free allocations. Italy has also requested a temporary freeze on updating ETS benchmarks to protect energy-intensive sectors such as cement and aluminium.
In the European Parliament, the ECR and Patriots for Europe groups are calling to postpone or scrap ETS2 for road transport and buildings until 2030, a position backed by several Central and Eastern European countries, including Czechia, Hungary, and Slovakia. The new system would cost too much and be too large a burden on Europe’s competitiveness according to them.
A review of the ETS is expected to be presented on 15 July.
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