On the way to EU’s clean energy transition: new approaches and challenges for Gas Regulation in the EU

Abstract

Gas has long been omnipresent in EU energy mix. The challenges created by Russia’s war on Ukraine, coupled with the Union’s decarbonization objectives, place gaseous fuels overall into a new perspective. On the one hand, the use of natural gas, a fossil fuel, mainly imported until recently from Russia, needs to be alleviated. On the other hand, natural gas has acquired an interim but still important status until the anticipated ‘green transition’ is finally achieved. Hydrogen for its part, which can range from relatively ‘dirty’ to ‘green’, is an energy carrier set to play a fundamental role in the process. The EU energy regulatory framework is rapidly expanding and evolving addressing the ‘trilemma’ of energy efficiency, energy security, and climate challenges, at times of financial constraints. The endgame and strategic objective is efficient full deployment of renewables. Gas cannot be presently abandoned, but rather sustainably utilized, in a cost-effective manner. Ideas put forward include repurposing existing pipelines, enhancing financial support for clean gases, rationalizing disinvestments, diversifying supply and employing Carbon Capture, Utilization and Storage. If such policy options are properly applied, gaseous fuels will continue to be pivotal in the EU’s energy mix in the road to a fully sustainable future for the European peoples. The present article analyses the above aspects as well as legal and regulatory challenges that lie ahead.