The European Union is preparing a sweeping set of emergency measures that could fundamentally reshape how Europeans travel and consume energy, as geopolitical tensions in the Middle East send shockwaves through global fuel markets. At the heart of the plan is a controversial call for companies to sharply reduce work-related air travel, alongside a broader push to make rail and public transport more affordable and accessible.
The European Commission’s draft Energy Action Plan, expected to be formally presented next week, reflects growing alarm in Brussels over the economic and strategic consequences of the conflict involving the United States, Israel, and Iran. The crisis has disrupted key energy supply routes, most notably the Strait of Hormuz, through which roughly one-fifth of the world’s oil and gas flows. The closure of this vital corridor has already cost European economies more than €22 billion in additional fossil fuel imports, according to Commission estimates.
Faced with rising prices and looming supply shortages, the EU is urging both public institutions and private companies to rethink travel habits. The draft proposal explicitly calls for avoiding air travel for work whenever possible, and for minimizing flights by public sector employees. Instead, the Commission is advocating a shift toward rail and other lower-emission transport options, supported by state subsidies to reduce ticket prices and encourage adoption.
The urgency of the situation is underscored by warnings from European airports, which have signaled that jet fuel shortages could emerge within weeks if supply routes remain blocked. Nearly 40 percent of aviation fuel used in Europe is sourced from the Middle East, leaving airlines particularly vulnerable to ongoing disruptions.
In response, Brussels is promoting a broader transformation of mobility patterns. The plan emphasizes increased teleworking, with companies encouraged to implement at least one mandatory remote workday per week where feasible. At the same time, governments are being asked to expand public transport networks, invest in electric mobility, and incentivize workers to commute using buses, trains, and shared systems rather than private cars.
Electric vehicles are a central pillar of the strategy. The Commission argues that, at current oil prices, driving an electric car is significantly cheaper per kilometer than using a gasoline-powered vehicle. To accelerate this transition, the EU is calling for stronger public support for electric vehicle purchases and a rapid expansion of charging infrastructure, which remains uneven across member states.
Urban mobility is also a focus. The plan includes measures to support bike-sharing systems, promote micromobility solutions, and expand car-free zones in cities. Local authorities are encouraged to organize car-free days and to develop dedicated lanes, parking, and reduced tolls for high-occupancy vehicles, aiming to reduce congestion and fuel consumption simultaneously.
Beyond transport, the Commission is proposing structural changes to Europe’s energy system. A key element is the reduction of electricity taxes to make it more competitive with fossil fuels. By lowering the cost of electricity, policymakers hope to accelerate electrification across industries and households, thereby reducing reliance on imported oil and gas.
Current figures highlight the potential impact of such reforms. In 2024, network charges accounted for 27 percent of household electricity bills and 21 percent for businesses, while taxes and levies made up an additional 24 percent and 16 percent respectively. Harmonizing and reducing these costs, the Commission argues, could significantly improve affordability and competitiveness.
The proposal also includes the possibility of allowing zero-rate electricity taxation for energy-intensive industries, providing relief to sectors struggling with high operating costs. At the same time, Brussels is working on revising the Energy Taxation Directive to ensure that electricity is taxed at lower rates than fossil fuels, reinforcing the economic logic of the green transition.
Financing this transformation will require massive investment. The Commission estimates that around €660 billion per year will be needed through 2030 to meet energy transition goals. While substantial EU funds are already available—including €184 billion from the Recovery and Resilience Facility and €38 billion from cohesion policy funds—officials are also looking to unlock private capital. Institutional investors in Europe manage more than €12 trillion in assets, much of which remains untapped for energy projects.
The draft plan draws on examples from member states to illustrate potential pathways forward. Spain’s widespread reductions in public transport fares, in some cases up to 100 percent, are highlighted as a model for encouraging mass transit use. France’s large-scale subsidies for heat pumps, geothermal, and solar energy, along with a €500 million industrial heating fund, are also cited as best practices.
Spain, in particular, is closely aligned with the Commission’s approach. Its government has made electrification and reduced fossil fuel dependence central to its energy strategy, implementing measures such as VAT reductions on electricity and fuel, cuts to electricity taxes, and direct subsidies for sectors like transport and agriculture. While some of these policies are short-term responses to immediate price pressures, others are designed to support long-term decarbonization.
Despite the ambitious scope of the plan, European officials acknowledge the challenges ahead. Balancing short-term crisis management with long-term climate goals remains a delicate task, especially as some emergency measures—such as fuel subsidies—can run counter to decarbonization efforts.
Nevertheless, the Commission insists that the current crisis underscores the urgency of reducing Europe’s dependence on fossil fuels, not only for environmental reasons but also for strategic autonomy. As negotiations between Tehran and Washington remain uncertain, Brussels is betting that a combination of behavioral changes, technological investment, and policy reform can help shield the continent from future shocks.
