Balancing Energy Security, Decarbonization, and Competitiveness in Europeʼs Energy Landscape

As the European Union advances towards a low-carbon economy, crude oil and natural gas remain fundamental to ensuring energy stability, particularly for critical industries and infrastructure. However, geopolitical tensions and regulatory complexities have heightened Europe’s vulnerability to supply disruptions. With crude oil and natural gas still making up nearly 60% of the EU’s energy mix, diversifying sources, improving infrastructure resilience, and ensuring long-term investment certainty are essential for balancing security, competitiveness, and sustainability. Addressing these challenges requires strategic policy decisions that facilitate reliable energy sourcing while supporting the EU’s climate commitments.

To strengthen energy security, the EU must prioritize pragmatic decarbonization pathways, promote flexible market mechanisms, and support diversification of energy sources and supply routes. Avoiding excessive regulatory burdens and maintaining a technology-neutral approach will help attract necessary investments in both traditional and emerging energy solutions. By fostering global partnerships, enhancing infrastructure, and ensuring clear political signals, Europe can secure a more stable energy future while advancing its net-zero ambitions.

Recommendations to strengthen EU energy security in addition to sending clear and decisive political signals at the highest level, the EU should consider the following recommendations:

•  Conduct competitiveness and fitness checks of EU legislation
•  Ensure diversification of energy sources, suppliers, and routes
•  Assess and encourage the use of European crude oil and natural gas resources
•  Ensuring robust infrastructure and safeguarding its security and full utilization
• Use realistic demand outlooks and pragmatic decarbonization pathways
• Optimize market functioning and avoid the use of distortive measures

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