Energy Prices Remain High in Europe: Low-Carbon Production Seen as Solution

Energy prices in Europe continue to remain at critical levels, impacting both industry competitiveness and household well-being. European Commission President Ursula von der Leyen addressed the issue in a recent speech to the European Parliament, highlighting the region’s dependence on imported fossil fuels and global energy fluctuations as significant drivers behind the high costs. She stressed that leaders gathering at the upcoming European Council meeting in Brussels will prioritize topics like competitiveness, affordable housing, and energy.

Von der Leyen argues that Europe’s solution to soaring prices lies in boosting the generation of low-carbon and domestic energy sources such as solar, wind, hydro, geothermal, and nuclear power. However, she also pointed out that outdated infrastructure and high taxes are further fueling the energy cost crisis, not just the reliance on fuel imports. According to Commission data, taxes make up 34% of business energy expenses and 42% of household bills, with industry paying especially high taxes on electricity compared to natural gas.

She emphasized the need for a coordinated EU-wide and national response, stating, “We can’t continue like this.” The Commission is preparing new initiatives to modernize and interconnect power grids, and plans to steer cohesion policy investments toward energy infrastructure. While von der Leyen acknowledged that a rapid move away from gas and oil is not feasible in the short term, she insisted these fuels should not provide a competitive edge for industry given their broader economic and environmental costs. She concluded with a call to action, underlining that both industry and families can’t wait any longer for affordable energy.