{"id":4804,"date":"2026-03-13T21:40:40","date_gmt":"2026-03-13T16:10:40","guid":{"rendered":"https:\/\/www.businessupturn.com\/trade-policy\/?p=4804"},"modified":"2026-03-13T21:40:40","modified_gmt":"2026-03-13T16:10:40","slug":"is-europes-green-deal-really-behind-rising-energy-prices","status":"publish","type":"post","link":"https:\/\/www.businessupturn.com\/trade-policy\/is-europes-green-deal-really-behind-rising-energy-prices\/4804\/","title":{"rendered":"Is Europe\u2019s green deal really behind rising energy prices?"},"content":{"rendered":"

Senior European lawmakers have defended the European Green Deal<\/span><\/span> against criticism linking climate policy to rising energy prices, arguing that recent price shocks were driven largely by geopolitical disruptions, fossil fuel dependence and slow investment in renewable infrastructure rather than environmental regulation.<\/p>\n

In a policy commentary published in Brussels, Iratxe Garc\u00eda P\u00e9rez<\/a><\/span><\/span> and Mohammed Chahim<\/a><\/span><\/span> said the narrative blaming Europe\u2019s climate policies for weakening industrial competitiveness and increasing electricity costs overlooks the legal and economic factors shaping the continent\u2019s energy markets.<\/p>\n

The lawmakers said the sharp increase in energy prices experienced across Europe in recent years stemmed primarily from global economic recovery after the COVID-19<\/span><\/span> pandemic. As lockdown restrictions ended, industrial production resumed and transport demand surged, leading to a rapid increase in global energy consumption while supply chains and production capacity remained constrained.<\/p>\n

They also pointed to the energy shock triggered by Russia<\/span><\/span>\u2019s invasion of Ukraine<\/span><\/span> in 2022, which disrupted long-standing gas supply arrangements between Moscow and European markets. Over two decades, many European economies had become heavily dependent on Russian fossil fuels, creating structural vulnerability within the region\u2019s energy system.<\/p>\n

According to the lawmakers, the crisis highlighted the strategic risks associated with reliance on imported fossil fuels and strengthened the policy rationale for accelerating renewable energy deployment under the EU\u2019s climate legislation.<\/p>\n

They also warned that geopolitical instability in other regions, including tensions involving the United States<\/span><\/span>, Israel<\/span><\/span> and Iran<\/span><\/span>, continues to create volatility in global oil and gas markets, further exposing Europe to price shocks linked to fossil fuel supply chains.<\/p>\n

Under the EU\u2019s climate and energy regulatory framework, the European Green Deal aims to reduce greenhouse gas emissions, expand renewable energy capacity and strengthen energy security through long-term decarbonisation policies.<\/p>\n

Policy analysts say the transition requires substantial investment in renewable generation, electricity grids, energy storage and efficiency measures. The lawmakers acknowledged that Europe has faced an investment gap in these areas, slowing the pace of energy system transformation.<\/p>\n

The issue was also highlighted in a competitiveness report by former European Central Bank president Mario Draghi<\/span><\/span>, which warned that insufficient investment in clean technologies could undermine Europe\u2019s economic competitiveness in the global energy transition.<\/p>\n

EU policymakers argue that renewable sources such as wind and solar power provide long-term price stability because they are not subject to fuel import costs or geopolitical supply disruptions. Once installed, renewable infrastructure generates electricity at comparatively low operational cost.<\/p>\n

They also pointed to policy instruments such as the Social Climate Fund<\/span><\/span>, designed to help households and small businesses adapt to the clean energy transition through building renovations, energy efficiency improvements and financial assistance.<\/p>\n

Industrial policy initiatives are also being discussed within the EU to strengthen domestic manufacturing of clean technologies. Proposals such as the Industrial Accelerator Act<\/a><\/span><\/span> seek to support European industries through public procurement policies and the development of local supply chains for renewable and digital technologies.<\/p>\n

At the same time, EU lawmakers defended the EU Emissions Trading System<\/span><\/span>, which sets a price on carbon emissions and is widely regarded as one of the bloc\u2019s key market-based climate policies. Supporters say weakening the system would shift the cost of pollution from companies to taxpayers and reduce incentives for industrial decarbonisation.<\/p>\n

Energy policy experts say the broader debate reflects tensions between climate objectives, industrial competitiveness and social affordability. Governments must balance long-term decarbonisation commitments with short-term measures to shield consumers from energy price volatility.<\/p>\n

As Europe continues to adjust its energy policies in response to geopolitical tensions and market instability, policymakers say accelerating renewable investment and strengthening energy independence remain central to the EU\u2019s legal and policy framework for achieving climate neutrality and economic resilience.<\/p>\n","protected":false},"excerpt":{"rendered":"

Senior European lawmakers have defended the European Green Deal against criticism linking climate policy to rising energy prices, arguing that\u2026<\/p>\n","protected":false},"author":482,"featured_media":4808,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,1],"tags":[2380,2379,2382,2383],"class_list":["post-4804","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-european-union","category-news","tag-emissions-trading-system-ets","tag-industrial-accelerator-act","tag-iratxe-garcia-perez","tag-mohammed-chahim"],"reading_time":"4 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/posts\/4804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/users\/482"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/comments?post=4804"}],"version-history":[{"count":3,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/posts\/4804\/revisions"}],"predecessor-version":[{"id":4836,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/posts\/4804\/revisions\/4836"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/media\/4808"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/media?parent=4804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/categories?post=4804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/trade-policy\/wp-json\/wp\/v2\/tags?post=4804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}