Full Title: Turning Off the Gas: Stronger and Coherent EU Policy to Accelerate the Fossil Gas Phaseout
Author(s): Duncan Gibb, Megan Anderson, Louise Sunderland and Samuel Thomas
Publisher(s): Regulatory Assistance Project
Publication Date: October 18, 2022
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Description (excerpt):
Rapidly and consequently phasing out fossil gas demand has become a top priority in Europe. Existing European legislation is expected to achieve only moderate reductions by 2030. Proposed laws under negotiation are expected to go further, yet more ambitious targets and a unified policy approach could achieve potential reductions currently left on the table.
Our analysis finds that even with full implementation of the REPowerEU plan, by 2030 natural gas demand in Europe will remain at around 150 bcm, roughly equivalent to Russian gas imports in 2021. These reductions can be faster and deeper. A stronger energy efficiency target in the EED and a higher renewable energy target in the RED could reduce gas demand below 100 bcm and eliminate Russian gas imports. Furthermore, the Hydrogen and Decarbonised Gas Market package does not adequately plan for such a drastic potential decrease in fossil gas demand. It should emphasize integrated planning and targeted applications of alternative gases to ensure its coherence with a fossil gas phaseout.