EU Launches AccelerateEU Package Amid Iran-War Energy Shock

On Wednesday the European Commission unveiled AccelerateEU, measures that create a Fuel Observatory, coordinate strategic releases of jet fuel, diesel and gasoline, and provide income support, energy vouchers and reduced electricity taxes for households and vulnerable industries.

Oil Price

The crisis follows the 2022 Russian gas disruption after the Ukraine war and the February 2024 US-Israeli attack on Iran, which blocked oil and LNG shipments through Strait of Hormuz, pushing oil above $100 per barrel and raising European gas and jet-fuel costs.

Carbon Brief

Since the war began the EU has spent an extra €24 billion ($28 billion) on energy imports—without receiving “a single extra molecule of energy.” About 70 % of EU jet fuel is imported; jet-fuel prices have doubled, prompting Lufthansa to cut 20,000 flights. BASF reports up to 30 % price hikes.

CNN

The Commission called the crisis “a stark reminder that accelerating the shift to clean, secure energy is an economic and security imperative.” Energy Commissioner Dan Jørgensen said the EU must “coordinate more and better to secure supplies.” President Ursula von der Leyen pledged AccelerateEU will provide immediate relief and a long-term shift to home-grown clean energy.

Carbon Brief

Lufthansa cut flights to curb fuel costs; EU fisheries received aid after fishermen halted work due to soaring fuel prices. BASF’s price hikes affect feed additives and products. A mothballed bioethanol plant was re-started to secure carbon-dioxide for medical and food production, while fuel theft at pumps has risen.

CNN

Oil prices fell below $100 after a cease-fire but spiked again after a later attack in Strait of Hormuz, underscoring volatility. The timeline for tax reforms, fertilizer plan and other measures remains pending legislative approval, leaving short-term relief uncertain. Carbon Brief also noted AccelerateEU “stops short” of a windfall tax on oil- and gas-company profits and that many actions need unanimous member-state approval, raising concerns about speed and equitable burden sharing.

Carbon Brief

• “For the second time in less than five years, Europeans are paying the price of Europe's dependency on imported fossil fuels,” — European Commission

Oil Price

• “No airport in Europe is currently facing jet fuel shortages, and flight operations are proceeding normally,” — Olivier Jankovec, Director General, ACI Europe

Oil Price

• “This is just the first wave of the energy shock, primarily showing up in higher prices at the pump,” — Adam Deasy, Economist, PwC United Kingdom

CNN

• “We must accelerate the shift to homegrown, clean energies. This will give us energy independence and security, and mean we are better able to weather geopolitical storms.” — Ursula von der Leyen, President, European Commission

Carbon Brief

EU leaders will discuss AccelerateEU at the European Council in Cyprus (23-24 April) and at a ministers meeting on 13 May. The Commission will publish the electrification action plan by summer, a fertilizer plan on 19 May, and is evaluating US jet-fuel imports.

Carbon Brief