The writer is a senior research fellow at the Centre for European Reform
Given how much time EU leaders devote to discussing gas price caps, you would be forgiven for thinking that they are the solution to Europe’s energy woes. Another favourite: fretting about industrial competitiveness — not only because high energy costs put Europe at a disadvantage, but also because the US is offering big subsidies to green technology sectors through the Inflation Reduction Act.
Europe’s leaders are right to try to protect consumers and keep business costs down, and they should lean into energy efficiency to deliver on both fronts. It is the least sexy of green investments, with less visibility than wind farms or new battery factories, but it is the only way to durably curb Europe’s reliance on fossil fuels.