AccelerateEU: The consequences of Europe’s fossil fuel dependency

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AccelerateEU is the EU’s latest response to yet another avoidable energy crisis. While it rightly prioritises reducing our economies’ dependence on fossil fuels, accelerating renewables and grid deployment, and strengthening consumer protection, it only ‘manages’ the crisis rather than addressing its root causes. Ultimately, it fails to ensure a fair clean energy transition, particularly for people in vulnerable situations, as it does not secure the necessary financing or binding social and environmental safeguards. 

Right diagnosis, weak action

In recent years, the European Commission has repeatedly responded to soaring energy prices and growing security risks. The €300 billion REPowerEU plan, launched in May 2022 after Russia’s invasion of Ukraine, aimed to end dependence on Russian fossil fuels while speeding up the clean energy transition. In February 2025, the Affordable Energy Action Plan introduced measures to bring down costs for households and businesses, while just a few weeks ago the Citizen Energy Package sought to empower people to take part in the transition. 

Now, against the backdrop of what the International Energy Agency has called ‘the largest energy crisis in history’ following the US-Israel war with Iran, the Commission has introduced AccelerateEU. In its Communication, the Commission shows that it fully understands the problem: this is a fossil fuel crisis, and dependence on fossil fuels is a structural vulnerability. The solution lies in a green transition built on electrification, grids, heat pumps, renewables and energy savings. The document sets out five areas of action and lists measures that could bring relief to consumers facing energy price spikes while accelerating the shift to clean energy. 

But the level of ambition falls short of what the moment requires. There is no clear pathway to phase out fossil fuels, nor any proposal for a permanent tax on the windfall profits of fossil fuel companies to generate public revenue for the transition, as we and other civil society organisations have recently called for. More broadly, it avoids the deeper question of our economic model, still driven by overconsumption and endless growth, and therefore fundamentally incompatible with planetary boundaries. 

People in vulnerable situations largely overlooked

While the AccelerateEU Communication acknowledges the need to protect households from large price increases, it does not explicitly state that this protection should primarily target communities most affected, such as those living in poverty or at risk of social exclusion. Nor does it set out specific, practical actions to ensure vulnerable households benefit from electrification, renewable energy and increased funding. Targeted short-term relief should prioritise the most vulnerable households, including measures such as cheaper public transport tickets, energy vouchers for households in energy poverty, and regulated energy prices (social tariffs) for vulnerable groups. Measures should also include reducing electricity taxes for low-income and energy-poor households, either fully or partially, as well as temporarily banning energy disconnections to ensure everyone retains access to essential services. 

However, short-term support alone is insufficient. Structural, long-term measures and investments must also prioritise those most in need and be made conditional on binding social and environmental standards. This requires a clear shift in how funding is allocated and implemented. Financing should be fast-tracked and scaled up for social housing retrofits, public transport services, energy communities and community-managed renewable energy projects, ensuring that affordability is combined with democratic control over energy systems. At the same time, consumers must be genuinely empowered to benefit from the energy transition. This means enabling them to easily switch to more affordable energy contracts and ensuring access to independent, transparent price comparison tools that support informed choices. 

A comprehensive approach should also include targeted measures such as providing vulnerable households with up to 100% subsidies to replace fossil fuel boilers, permanently reducing public transport fares or making them free for the most vulnerable groups, and introducing dedicated financial support and fiscal incentives. Instruments such as social leasing schemes can play a key role in accelerating the uptake of accessible, clean technologies, including heat pumps, solar PV panels, plug-in batteries and high-performance windows. Importantly, some of these measures are already being implemented in several countries and are recognised as good national practices in Annex I of the AccelerateEU Communication. 

A central question remains: where will the necessary funding come from? The Commission estimates that around €132 billion per year is needed to deliver the energy transition. However, it does not clearly identify any sufficient and fair sources of revenue, such as windfall profit taxes or broader measures to ensure that higher-income groups contribute proportionately. At the same time, the EU already has significant financial resources at its disposal. Revenues from the Emissions Trading System (ETS1 and the forthcoming ETS2) are expected to generate approximately €30–40 billion annually. These funds should be rapidly and systematically channelled into an increased Social Climate Fund to support vulnerable households through deep energy renovations and improving access to affordable public transport. To maximise available resources, free emission allowances should be phased out more quickly to increase auction revenues. Continuing large-scale free allocations risks significantly limiting the funding available for social and climate measures. 

It’s time for bold action!

In conclusion, while AccelerateEU sets the right strategic direction, it risks remaining more promotional than transformational unless backed by concrete financing and strong social measures. Redirecting existing ETS revenues, phasing out generous free allocations and prioritising targeted support for the most vulnerable are all essential steps. If implemented correctly, these measures could ensure that the energy transition accelerates decarbonisation and delivers lasting social fairness, making this the last ‘energy crisis’ disproportionately borne by those least able to afford it.