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Investing.com -- The European Commission is expected to publish a new energy policy package titled "AccelerateEU" on April 22, according to media reports cited by Jefferies. The plan aims to reduce European demand for oil and gas through increased electrification and fiscal support for low-carbon technologies.
The package is being developed in response to recent energy disruptions linked to Middle East instability and the Iran conflict, which have caused price spikes and supply concerns, particularly around the Strait of Hormuz.
According to a draft of the plan, the European Commission is framing the initiative as economic and energy security infrastructure rather than incremental climate policy. The draft states that the benefits of the transition outweigh its costs and that Europe cannot afford to remain exposed to increasingly frequent energy shocks.
The reported measures include efforts to tax electricity below fossil fuels, with potential pathways toward zero-rate power for energy-intensive industries. The Commission is also expected to propose an EU-wide electrification target before summer.
Additional elements include a catalogue of fiscal support for energy-saving measures and clean technologies, covering heat pumps, geothermal systems and smart grids. These measures are designed to accelerate the replacement of oil and gas demand.
Brussels is also expected to increase coordination of gas storage filling to prevent price spikes caused by uncoordinated procurement. While tax changes require unanimous approval from member states, the Commission is positioning electrification as the primary tool to avoid future energy crises.
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