BRUSSELS: The Iran war energy crisis should act as a wake-up call for Europe to redouble efforts to reduce reliance on fossil fuels, Brussels said on Wednesday warning the conflict's effects will be felt for years. The effective closure of the Strait of Hormuz has sent oil prices soaring and affected supply of jet fuel in Europe. "This must be a wake-up call and a turning point — when Europe steps away from fossil fuel dependence and steps towards clean energy autonomy," EU energy chief Dan Jorgensen told a press conference in Brussels.
Even if a diplomatic solution to the standoff between Iran and the United States was to be found, the effects of the crisis would be felt for years, he said. "Even a best case scenario is a pretty bad scenario for the next months to come and we will have effects for years," Jorgensen said. Damage to gas infrastructure in Qatar for example could take years to return be fully repaired, affecting prices of liquified natural gas, he noted.
In response the European Commission laid out steps to help the 27-nation bloc navigate current and future straits. These included relaxed state aid rules, coordination on gas storage filling, and an "electrification action plan" to further accelerate "the shift to homegrown clean energy".
A "fuel observatory" to track EU production, imports, exports and stock levels of transport fuels would also be established.
Focus would initially be on jet propellant. While the EU has said there is currently no evidence of "actual shortages", stocks are under pressure in parts of the bloc. "We can indeed end up in a situation where this will cause a real problem to us," Jorgensen said. "A lot of people are going on holiday this summer. A lot of cities and regions and member states are dependent on tourism. And of course, they are very worried". — AFP
Oman Observer is now on the WhatsApp channel. Click here
