The EU’s Foreign Policy for a Low-Carbon and Energy-Secure Future

The European Union (EU) is facing a dual challenge of tackling climate change and ensuring energy security in a turbulent world. The EU has set itself ambitious targets to reduce greenhouse gas emissions by at least 55% by 2030 and achieve climate neutrality by 2050, as part of its European Green Deal¹. At the same time, the EU is grappling with an energy crisis that has exposed its vulnerability to external shocks and dependence on Russian energy imports². How is the EU addressing these interrelated issues and what role does foreign policy play in achieving its climate and energy objectives?

Diversifying energy sources and routes

One of the key pillars of the EU’s energy security strategy is to diversify its sources and routes of energy supply, especially for natural gas, which accounts for about a quarter of the EU’s energy consumption³. The EU imports about 40% of its gas from Russia, mainly through pipelines that cross Ukraine and Belarus⁴. This exposes the EU to geopolitical risks, such as disputes over transit fees, sanctions, or military conflicts, that could disrupt gas flows and cause price spikes⁵.

To reduce its reliance on Russian gas, the EU has been pursuing several initiatives to diversify its gas supply sources and routes, such as:

• The Southern Gas Corridor, a pipeline infrastructure that brings gas from the Caspian Basin to the EU via Turkey, Greece, Albania, and Italy⁶. The project, which was commissioned in 2020, delivered 8.1 billion cubic meters (bcm) of gas to Europe in 2021, and 11.4 bcm in 2022, representing 2.4% and 3.4% of total EU gas imports, respectively⁶. The EU is supporting the further expansion of the corridor, which could potentially bring gas from other regions, such as the Eastern Mediterranean, Central Asia, or the Middle East⁶.
• The Baltic Pipe, a pipeline that will connect Poland with Norway’s gas fields via Denmark, and increase the gas supply to Central and Eastern Europe⁷. The project, which is expected to be completed by 2023, will have a capacity of 10 bcm per year, and will also enable reverse flows from Poland to Denmark⁷.
• The liquefied natural gas (LNG) terminals, which allow the EU to import gas from various sources around the world, such as the US, Qatar, Algeria, or Nigeria⁸. The EU has increased its LNG import capacity from 196 bcm in 2014 to 246 bcm in 2020, and plans to further expand it to 280 bcm by 2023⁸. The EU’s LNG imports reached a record high of 108 bcm in 2020, accounting for 28% of total gas imports⁸.

These projects, along with others, have increased the EU’s resilience and flexibility in the face of external shocks and market fluctuations. According to the European Commission, the EU’s gas supply diversification index, which measures the number and size of alternative suppliers, increased from 0.67 in 2012 to 0.76 in 2019, on a scale from 0 to 1, where 1 represents the highest level of diversification⁹.

Leveraging foreign policy for climate goals and energy security

The EU’s efforts to diversify its energy sources and routes are not only driven by economic and security considerations, but also by environmental and climate objectives. The EU recognizes that natural gas, while being a fossil fuel, can play a transitional role in its low-carbon future, as it emits less carbon dioxide than coal or oil when burned for power generation¹⁰. The EU also supports the development of renewable and low-carbon gases, such as biogas, biomethane, or hydrogen, which can be blended with or replace natural gas in the existing infrastructure.

The EU’s foreign policy plays a crucial role in advancing its climate goals and ensuring its energy security, as it seeks to engage and cooperate with partners worldwide on these issues. The EU has made climate change a central element of its external policy and has been at the forefront of international agreements on climate policy, such as the Paris Agreement. The EU also shares its expertise and encourages its partners to take bold action against global warming, providing targeted support, where necessary, to those most affected, to assist the transformation of their economies.

The EU’s external energy policy also aims to support, intensify, and accelerate the global energy transition, as a key element towards achieving climate neutrality. The EU promotes the development and integration of renewable energy sources, energy efficiency, and clean technologies, both within and outside its borders. The EU also fosters regional cooperation and dialogue on energy issues, such as the Energy Community, the Union for the Mediterranean, or the Clean Energy for EU Islands initiative.

The EU’s foreign policy also involves addressing the geopolitical implications of the energy transition, such as the potential conflicts over scarce resources, the impact on trade and investment flows, or the human rights and social aspects of the green transition. The EU strives to promote a rules-based and multilateral approach to global governance on energy and climate issues, and to ensure a level playing field and fair competition for its businesses and consumers.

Conclusion

The EU is facing a complex and interrelated challenge of tackling climate change and ensuring energy security in a turbulent world. The EU has set itself ambitious targets to reduce greenhouse gas emissions and achieve climate neutrality, while also diversifying its energy sources and routes to reduce its dependence on Russian energy imports. The EU’s foreign policy plays a key role in achieving these objectives, as it seeks to engage and cooperate with partners worldwide on climate and energy issues, and to address the geopolitical implications of the energy transition. The EU’s success in balancing its green and geopolitical interests will depend on its ability to maintain its unity and leadership, and to foster trust and dialogue with its allies and adversaries.