With solely weeks to go earlier than a key UN local weather convention, the German authorities is pushing EU leaders to work with nations which have the capability “to develop new fuel fields”, in line with a doc seen by EURACTIV.
Germany, itself beneath hearth for its €200 billion family and trade assist scheme, is pushing fellow EU leaders to desert the concepts of worth caps at an EU summit on 20-21 October.
“The value of fuel, of oil and coal has to come back down, the value of electrical energy has to come back down. And that’s additionally one thing that requires a joint effort from all of us in Europe,” mentioned Chancellor Olaf Scholz Mentioned earlier than getting into into the Brussels summit.
“I’m very happy that the European Fee has offered a complete collection of fine concepts and proposals, which we’ll proceed to take care of right here and definitely not solely as we speak,” he added.
On Tuesday (18 October), the European Fee proposed that EU nations collectively buy fuel forward of the 2023 winter and contemplate a “dynamic” worth cap on fuel on the Dutch TTF alternate.
The concept of introducing a worth cap is gaining traction among the many 27 EU member states however views differ sharply on the way it ought to apply whereas others like Germany and the Netherlands are opposed.
Earlier this month, a 15-country coalition urged the Fee to introduce a cap on wholesale fuel costs. France, in the meantime, is encouraging the EU government to introduce an EU-wide “Iberian mechanism” the place the state steps in to subsidise fossil fuel used for electrical energy technology.
“What we need to see included within the conclusions is the capping of fuel used to make electrical energy. I consider it would keep within the conclusions as we managed so as to add it in the course of the preliminary negotiations,” mentioned Czech Prime Minister Petr Fiala, whose nation holds the six-month rotating presidency.
No intervention
The conclusions of the EU leaders’ assembly will present steering for the EU government when drafting proposals on the right way to include fuel costs.
However as issues stand, the German delegation seems able to veto all strategies of worth caps, in line with the doc seen by EURACTIV.
A doc itemizing Germany’s feedback for the draft summit conclusions removes all mentions of worth caps.
The German authorities can also be pushing for elevated fuel manufacturing simply weeks forward of the local weather convention COP27 in Egypt.
In response to the doc, Berlin encourages the EU “to work along with nations which have the capability to develop new fuel fields, as a part of the Paris Local weather Settlement commitments.”
In 2021, the Worldwide Power Company warned that with a purpose to attain web zero emissions by 2050 and have a shot at limiting international warming to 1.5 °C, there might be “no new investments in oil, fuel and coal, from now.”
Requested about solidarity amongst EU nations going into the summit, Scholz advised reporters, “We’re the largest supporter of Europe. We’re paying 26% of the price range normally.”
Whether or not it will assist mend the fractured relationship between Paris and Germany is unsure.
Different leaders are already asking the Germans to present in. “I count on the German authorities to be prepared to compromise,” Estonian Prime Minister Kaja Kallas advised ZDF forward of the summit.
> Learn the total doc under or obtain right here.
mc-Council conclusions 20102022 DE feedback
[Edited by Frédéric Simon/Nathalie Weatherald]
