Ameer Randolph
Europe's consumption of fossil fuels has been a topic of debate, especially with the global energy crisis and Russia's invasion of Ukraine. In 2019, fossil fuels accounted for 71% of the gross available energy in the European Union (EU), a significant decrease from 1990, when data was first available, by about 11 percentage points. Oil and natural gas are pivotal energy sources for the EU, with Russia and Norway being the leading suppliers. However, due to the war, Europe has reduced its reliance on Russian fossil fuels, opting for alternative sources and renewable energy expansion. Despite progress, Europe still heavily relies on fossil fuels, and countries like Germany are planning to phase them out gradually to achieve climate neutrality by 2045.
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What You'll Learn
Europe's dependence on fossil fuel imports
In recent years, Europe's dependence on fossil fuel imports has been impacted by Russia's invasion of Ukraine, which has resulted in reduced imports from Russia due to sanctions and the disruption of trade and infrastructure. Before the invasion, Russia was the main supplier of oil and natural gas to the EU, and Germany's main supplier of oil, gas, and hard coal.
The energy crisis caused by the war has led to a focus on reducing Europe's dependence on imported fossil fuels, particularly from a single supplier. The EU has implemented reforms to protect Europeans from price shocks and is working to reduce its energy demand, diversify its supplies, and increase the production of green energy. The rapid expansion of renewable energy is expected to reduce Europe's overall dependence on energy imports and alter the geopolitical map in the 21st century.
Despite the move towards renewable energy, Germany and the EU still rely heavily on fossil fuel imports due to the depletion of domestic resources and the high cost of extraction. Germany, in particular, is expected to import significant amounts of green fuels to meet its climate neutrality goals by 2045.
In conclusion, Europe's dependence on fossil fuel imports has been a complex issue with multiple factors influencing the energy market. The recent energy crisis has highlighted the need for reducing dependence on a single supplier, and the expansion of renewable energy sources is expected to play a significant role in Europe's energy future. However, the transition away from fossil fuels will likely involve a continued reliance on energy imports, including from third countries, for the foreseeable future.
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Oil as the main fuel source in the EU
Oil is the primary fuel source in the EU, largely used as a motor fuel and to produce petrochemicals. While oil production in the European Union has decreased significantly since the early 2000s due to depleted resources in the North Sea, it remains pivotal in meeting energy consumption. In 2018, the transport sector was the main consumer of petroleum products, with road transport accounting for 47.5% of this consumption. Oil-based fuels power automobiles, aircraft, and ships, and are integral to modern life.
However, burning oil is a leading source of CO2 emissions, with the transport sector being the primary contributor. Other major sources of CO2 emissions from oil use include heating homes and businesses, and the production of plastics and chemicals. Oil can also be burned to generate electricity, although this is rare due to the high costs and emissions impacts. Most crude oil is refined into oil products such as gasoline, diesel, kerosene, and heavy fuel oil.
The EU imports a significant amount of crude oil, with Russia being the main supplier until 2021. Following Russia's invasion of Ukraine in 2022, imports from Russia decreased substantially due to sanctions and the war's influence on trade and infrastructure. The EU also imports manufactured petroleum products such as gas/diesel oil, naphtha, liquefied petroleum gas, and kerosene-type jet fuel.
The EU has set targets for reducing greenhouse gas emissions and achieving climate neutrality by 2050. As fossil oil and gas are phased out, there is a growing need to replace them with synthetic fuels and renewable energy sources. Renewable electricity can be converted into hydrogen, methane, or synthetic petrol to serve as alternative energy sources.
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The decline in coal consumption
Europe has been taking steps to reduce its consumption of fossil fuels. In 2023, 45.4% of electricity was generated from renewable sources, while fossil fuels contributed to 31.7% of energy generation. This is a notable shift from the previous century when coal was the primary source of electricity in Europe.
Several countries in Europe have been actively phasing out coal. For instance, Germany has set interim greenhouse gas emission targets with the Climate Action Law, aiming to achieve climate neutrality by 2045. In August 2023, Poland's largest energy producer, PGE, announced its plans to become carbon neutral by 2040 and to stop using coal for electricity and heat production by 2030. This aligns with the European Union's goal of achieving climate neutrality by 2050.
The transition away from coal has been influenced by various factors, including the decline of heavy industry, the push for renewable energy sources, and the impact of Russia's invasion of Ukraine on energy prices and supply. The latter has accelerated Europe's move towards energy independence and renewable alternatives.
While Europe has made strides in reducing coal consumption, it still relies heavily on fossil fuel imports. In 2022, the European Union imported 62.5% of the energy it consumed, the highest level of dependency in decades. This highlights the ongoing challenge of balancing energy security and the transition to cleaner energy sources.
Despite the overall decline in coal consumption in Europe, there are variations among countries. Poland, for example, continues to rely heavily on coal, with coal accounting for roughly 57% of its electricity production in 2025, the highest in any EU country. However, political and economic barriers have slowed Poland's progress in transitioning away from coal.
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The rise of renewable energy sources
Europe has been making a concerted effort to reduce its consumption of fossil fuels and transition to renewable energy sources. This shift is driven by the desire to reduce greenhouse gas emissions, mitigate climate change, and enhance energy security. While fossil fuels, particularly oil and natural gas, have traditionally dominated Europe's energy mix, the continent is now witnessing a rise in renewable energy sources.
In 2023, renewable energy sources accounted for an estimated 24.5% of the European Union's final energy use, with solar panels, electric cars, and wind turbines becoming increasingly prevalent across Europe. This marks a significant increase from 2005, when renewables accounted for under 2% of the energy mix. The share of renewable energy in the transport sector specifically rose from under 2% in 2005 to 10.1% in 2023, achieving the EU's 10% target for this sector.
Several factors have contributed to the growth of renewable energy in Europe. Firstly, the energy crisis and Russia's invasion of Ukraine have prompted Europe to reduce its dependence on Russian gas imports, which previously accounted for 45% of the EU's gas supplies. This has resulted in a shift towards alternative energy sources, with the EU turning to imports from the United States and Norway. Additionally, high energy prices have incentivized the expansion of renewable energy projects, with Europe investing 10 times more in clean energy than in fossil fuels.
The transition to renewable energy is also driven by policy initiatives such as the European Green Deal and its RePowerEU plan. The RePowerEU initiative, adopted in 2022, aims to reduce gas demand by building more renewable energy capacity, improving power grids and energy storage, and increasing energy efficiency. Europe has set ambitious targets for renewable energy, aiming for a 42.5% share of renewable energy in gross final energy consumption by 2030 and a 55% reduction in greenhouse gas emissions by the same year.
Some countries within the EU have made notable progress in adopting renewable energy sources. For example, Austria, Bulgaria, and Finland increased their renewable energy shares by three percentage points or more in 2023. Estonia is also embracing renewable energy, with the construction of the Sopi-Tootsi wind farm, which will provide enough green energy to power approximately 10% of the country's electricity needs. These efforts reflect Europe's commitment to accelerating the transition to a clean and sustainable energy future.
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The impact of Russia's war on Ukraine on fossil fuel prices
Europe has long been dependent on fossil fuels, with around two-thirds of primary energy consumption in the EU derived from fossil fuels. Oil is the main fuel source in the EU, largely used as a motor fuel and to produce petrochemicals. Germany and Poland are the EU's biggest coal producers, while Russia and Norway are the leading producers outside the EU.
Russia's invasion of Ukraine has had a significant impact on fossil fuel prices in the EU, especially gas prices, and consequently, on Europeans' electricity bills. This is due to the link between electricity and gas prices in the EU. The price of gas rose significantly because the reduced volumes of Russian gas imports had to be replaced by more expensive sources, mainly LNG.
Prior to the war, Russia was the main supplier of oil and natural gas to the EU, accounting for over 40% of the EU's gas demand between 2018 and 2021. Following the invasion in February 2022, Russia cut 80 billion cubic meters of pipeline gas supplies to Europe, causing an energy crisis. The EU committed to phasing out Russian fossil fuel imports, but this led to an immediate energy deficit. The energy crisis triggered by the war has accelerated the transition to cleaner alternatives, with renewable energy sources expanding rapidly.
While imports of Russian oil and gas have decreased substantially, Europe still has a significant dependence on Russian fossil fuels. In the third year of the invasion, the EU's imports of Russian fossil fuels totalled EUR 21.9 billion, only a 1% year-on-year drop in volume. This has resulted in Russia earning EUR 242 billion from global fossil fuel exports in the third year, with a total of EUR 847 billion since the start of the invasion.
The war has also caused a sharp increase in oil prices, with both major oil benchmarks trading above $110, a 15% increase. The invasion has increased pressure on the energy system, with analysts predicting further upward trends in prices. The Biden administration's ban on Russian oil imports has also contributed to the rise in oil prices.
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Frequently asked questions
In 2019, fossil fuels made up 71% of the gross available energy in the EU. This has decreased significantly over the last few decades, with an increase in renewable energy sources.
Fossil fuels used in Europe include coal, natural gas, crude oil, and petroleum products.
In 2019, Malta (97%) was the EU Member State with the highest share of fossil fuels in gross available energy, followed by Cyprus and the Netherlands (both 92%), and Poland (90%).
Europe has some of the world's biggest fossil fuel companies, such as BP and Shell, and has traditionally relied heavily on imported fossil fuels, especially from Russia. However, due to the war in Ukraine, Europe has reduced its imports from Russia and is increasingly focusing on renewable energy sources.
Europe is transitioning away from fossil fuels towards climate neutrality, with Germany aiming to eliminate fossil fuels from its energy mix by 2045 and the EU as a whole targeting climate neutrality by 2050.
