Stop the EU funding Putin’s war; fast track a fossil free future

This week marks a pivotal moment for Europe in both its stand against Russia and the future of its energy system. The EU has a rare opportunity to undermine Putin’s war effort and to simultaneously transform our broken fossil-fuel dependent energy system, itself a cause of the war, which is also driving widespread energy poverty and the climate crisis.  

The European Commission is negotiating a ban on Russian oil imports in its sixth sanctions package and is set to announce its new energy strategy, “REPowerEU”, designed to end the dependency on Russian fossil fuels. Three months into the invasion, the week ahead could finally see the EU deprive Putin of his huge oil and gas revenues and accelerate energy savings and renewable energy build out – key measures to wean the continent off fossil fuels that the likes of Putin can switch on and off at a whim.  

But all the signs point to a lack of ambition and a failure to agree sanctions to protect the people of Ukraine. And REPowerEU risks deepening EU’s deepening Europe’s fossil fuel dependency with new infrastructure to support the import of new gas from anywhere but Russia. 

At the sixth attempt, it’s time to make sanctions work 

So far, EU countries have failed to end the flow of cash into Putin’s war chest. Russia has doubled fossil fuel revenues since the invasion, and European countries continue to send Putin over €1 billion every day. European companies have continued to ship Putin’s oil, gas and coal round the world, helping him find new customers and profit from spiralling prices.   

As negotiations continue and Hungary continue to destabilise the talks, preventing even the most basic of agreements. To be truly effective the sixth package must: 

Unequivocally ban the imports of all oil from Russia into the EU 

 Ban key European enablers such as maritime insurers, ship owners and technology providers from facilitating the trade of Russian oil to ensure that European companies cannot do Putin’s bidding and help him find new customers 

Avoid lengthy implementation timetables that will only continue to put funds into Putin’s pockets and will keep prices high to further benefit Russia. 

Oleg Ustenko, Chief Economic Advisor to President Zelensky, said: 

“Three months, multiple rounds of so-called sanctions and yet Russian soldiers continue to murder innocent Ukrainian civilians. At what point will the European Union and its leaders wake up to the fact that is simply is not going far or fast enough in targeting Putin’s cash cow fossil fuel industry? We must move beyond rhetoric; it’s time for action. Every drop of oil Europe buy from Russia has a price in Ukrainian blood. Banning Russian fossil fuels is an act not just of solidarity with Ukraine but of self-preservation for the whole of Europe” 

REPowerEU: A safer Europe means a genuine energy transition 

While European countries have failed to wean themselves off Russian oil and gas as innocent civilians are slaughtered in Ukraine, it has also failed to prepare itself for a future in which Putin can switch off the taps at any moment and in which climate chaos beckons. The same companies that are fuelling the climate crisis and funding Putin’s war are trying to use this moment to lock in new fossil fuel infrastructure, like new LNG terminals for huge imports from the US, that will put Europe’s climate targets at risk. 

In phasing out Russian fossil fuels, the EU has the tools to put renewable energy on a war footing, insulate homes across Europe, and reduce demand among the richest energy consumers – yet energy companies and commodity traders have been allowed to squirrel away record profits while millions fall into energy poverty. In seeking alternatives to Russian gas, the EU is looking to other autocrats and countries with troubling human rights records to fill the gap. Yet we can go much faster and further on renewables and are choosing not to.   

An announcement on the EU’s new energy strategy, RePowerEU, is expected on Wednesday. Leaked versions suggest a plan that will prioritise supply diversification over cutting Europe’s gas demand. At a minimum REPowerEU must: 

Accelerate the immediate buildout of key programmes to cut gas demand, focussing on building renovations, rooftop solar PV and replacing gas boilers with heat pumps. These proposals should prioritise the most vulnerable, living in the most energy inefficient housing. 

Mobilise current EU funds, including the Recovery and Resilience Facility and the Cohesion Fund, to support these programmes. 

Propose legal changes to its “Fit for 55” policies, including: 

An increase in the EU’s 2030 energy savings target to at least 45% and the 2030 renewable energy target to at least 50%. 

An overhaul of the proposed reform of the EU’s gas market rules to reflect the rapid phase out of fossil gas. 

Frontload measures proposed in the Energy Performance of Buildings Directive and Energy Efficiency Directive, including starting local heating and cooling plans now 

Ensure no public money or policy support is provided to new gas import pipelines or LNG terminals. 

Murray Worthy, Gas Campaign Leader at Global Witness, said: 

“Europe doing what is right to protect the people of Ukraine absolutely must not be a justification for the building of new fossil gas infrastructure that would lock Europe into decades more of polluting, expensive gas that is the currency of autocrats like Putin. Now is not the time to shift the deck chairs on the Titanic; instead, we need to see ambitious plans to boost renovations and renewables to end Europe’s fossil fuel dependency for good.”  

Hydrogen plans set to undermine climate targets 

In a separate announcement on Wednesday the European Commission will adopt new rules on green hydrogen that look set, according to leaked drafts, to include a major concession to the fossil fuel industry by delaying their implementation until 2027. This will mean companies will not be forced to build new renewable electricity installations to produce green hydrogen and instead will be allowed to use electricity from existing installations. This will divert precious green electricity away from decarbonising the grid, slowing the speed of energy transition.  

This would then need replacing from the grid, most likely with coal or gas fired electricity, meaning the push for green hydrogen would in fact increase rather than decrease emissions.  

It follows extensive lobbying from business groups like Hydrogen Europe, whose members include the likes of BP, Shell and Total, pushing for this delay.  

Dominic Eagleton, Senior Gas Campaigner at Global Witness, said: 

“Corporate lobbyists’ fingerprints are all over these rules, which are meant to ensure green hydrogen is good for the climate. Instead, we’ve ended up with a policy that turns this supposedly green fuel into a polluting one. This defeats the hydrogen industry’s purpose, which now risks gaining the reputation of a climate slayer not saviour.” 

Protect the most vulnerable, make the big polluters pay for their crisis 

The climate crisis and Russia’s war in Ukraine takes place alongside a deepening energy crisis that is causing poverty across Europe, as populations are forced to choose between heating and eating. Whilst some may offer alternate sources for oil and gas, such as the US, to plug the gap it’s clear that this is not a solution in the long run. Building new infrastructure, will entrench expensive gas for longer and will take several years to increase flows. Instead, a real and serious investment in renewables will reap rewards in the same time frame and come without both a huge cost to the climate, as well as global security.