EU Launches "Accelerate Europe" Plan to Address Energy Crisis
To address the surge in energy prices triggered by the Iran war, the European Commission launched the "Accelerate Europe" package on April 22, 2026. The plan aims to alleviate the fuel cost crisis caused by disruptions in shipping through the Strait of Hormuz by releasing strategic reserves, coordinating gas storage, and implementing electricity tax cuts. Currently, EU natural gas prices have risen by 48%, crude oil by 41%, and there is a risk of aviation fuel shortages, with natural gas inventories also at low levels.
As a core measure, the EU will implement the 400 million barrel strategic oil reserve release plan coordinated by the International Energy Agency, which is the largest action taken by the IEA to date. At the same time, the EU will coordinate with member states to replenish natural gas storage to 80% before winter and plans to issue guidance to address aviation fuel shortages, recommending increased imports from the United States and promoting the production of sustainable aviation fuels.
Unlike in 2022, the EU is avoiding direct market intervention this time, instead focusing on fiscal support. The plan includes revising tax rules to ensure electricity taxes are lower than those on fossil fuels, and allowing member states to implement electricity tax cuts and income subsidies for energy-intensive industries and vulnerable households.
In addition, the plan also focuses on long-term energy transition. The EU has pledged to present an electrification action plan before summer, but faces a funding gap of trillions of euros. Meanwhile, the price of the first-quarter certificates for the EU's Carbon Border Adjustment Mechanism (CBAM) has been announced, which will pose a significant carbon cost challenge for export products from countries such as China.