EU cuts Russian gas but struggles to break fossil fuel dependence
Europe still spends around €111 billion each year on fossil fuel subsidies. Yet efforts to cut reliance on Russian gas have seen mixed results. While imports from Russia dropped sharply after the 2022 invasion, broader targets for clean heating remain off track. Before the war in Ukraine, Russia supplied 45% of the EU's gas. By 2025, that share had fallen to just 12%. Despite this shift, the bloc continues to depend heavily on foreign gas, with 90% of supplies coming from outside the EU.
The EU's REPowerEU Plan aims to ban Russian gas imports permanently and accelerate clean heating solutions. However, progress has been slow. No member state has yet introduced laws to cut fossil gas use by 60% by 2030. The plan also set targets for heat pump installations, but current trends suggest only half will be met. Heating remains a major energy drain, with space and water heating making up 77.6% of an average household's energy use. Around a third of EU homes still rely on gas. To meet climate goals, the bloc needs an extra €78 billion annually until 2050 for clean heat solutions. One key policy, ETS2, was meant to price emissions from buildings and transport to fund renewable heating. But its launch was delayed by a year, pushing implementation to December 2026.
The EU has cut Russian gas imports significantly but still faces challenges in reducing fossil fuel dependence. Without stronger national policies or increased funding, clean heating targets risk falling short. The delay of ETS2 adds further uncertainty to the transition timeline.
