The European Union is considering backing investments in overseas fossil fuel infrastructure and shifting to long-term contracts to cut the high energy prices damaging European industries, according to a leaked proposal seen by POLITICO.
The move would mark a major change in the bloc’s energy policies, strengthening the continent’s links to the carbon-intensive liquefied natural gas it eventually wants to phase out. Currently, the EU only signs short-term LNG contracts and has worked to limit the use of public money to expand fossil fuel extraction.
Notably, the plan also raises the prospect that European government funds could help finance American LNG projects — just as Brussels officials try to hammer out a deal with United States President Donald Trump to buy more American energy and avoid a trade war.
The proposal is part of an upcoming Action Plan for Affordable Energy, due out Feb. 26. The draft shows the EU also wants new laws to fast-track power grid upgrades and will encourage lower electricity taxes and swift permits for emerging nuclear technologies. The offerings are a central part of Brussels’ response to industry complaints that soaring energy costs are leaving them trailing their U.S. and Chinese competitors.
