EU Plans to Mandate at Least One Day of Remote Work Per Week to Address Energy Shock
The European Commission will encourage remote work and offer public transport subsidies to reduce fossil fuel consumption. Countries are currently under pressure from energy price shocks triggered by the Middle East conflict. A document reveals the Commission will present a series of measures next week to lower energy demand, improve energy efficiency, and promote the transition to clean energy, aiming to provide "immediate relief" from high energy prices.
The proposals reference measures taken during the energy crisis caused by the Russia-Ukraine conflict and are part of the EU's efforts to reduce reliance on fossil fuels and promote green energy.
In a draft communication, the European Commission proposes encouraging companies to mandate at least one day of remote work per week where feasible. It also suggests subsidizing public transport and reducing VAT on heat pumps, boilers, and solar panels.
The document shows the EU will also set “ambitious” but yet-to-be-published electrification targets, with several sections of the document still blank and not yet finalized.
To achieve these electrification goals, the EU will assist member states in establishing a “social leasing scheme for clean and efficient technologies,” covering areas such as heat pumps, electric vehicles, and small batteries.
Several officials emphasized that these measures are recommendations, not mandatory directives. “If there is an energy shortage, we have a responsibility to let people know how to reduce energy use,” said one EU official. “We are not micromanaging people’s lives.”
The European Commission issued similar recommendations in 2022, urging businesses and consumers to lower their thermostats by one degree.
These recommendations to reduce oil and gas consumption are part of a package of measures to address high energy prices, including the electrification of energy systems and improved coordination of fossil fuel procurement. The document indicates that other measures, including addressing potential shortages of aviation fuel, are still under development.
The communication document, to be submitted to national leaders next week, is not legally binding overall. However, the European Commission will propose two pieces of legislation to lower costs.
These include revising electricity market rules to reduce electricity transmission costs, such as assessing the cost-effectiveness of different grid operators and making recommendations on electricity charges for energy-intensive industries.
The EU will also revise a directive to ensure that electricity taxes are lower than those on fossil fuels. A more radical proposal was shelved in 2025, but officials are optimistic that the current energy crisis will restart discussions.
The document notes that member states can flexibly implement a zero tax rate on electricity for energy-intensive industries.
The document also mentions that the European Commission will assist member states in designing price caps and income support schemes and assess windfall taxes imposed by member states, but does not meet calls from some member states for a unified EU-wide windfall tax.