Sylvie Willis
Europe's consumption of fossil fuels has been a topic of interest, especially with the global energy crisis and the push for climate neutrality. In 2021, fossil fuels accounted for 70% of gross available energy in the EU, a slight decrease from 71% in 2019. While there has been a general downward trend in fossil fuel consumption over the last few decades, the EU still relies heavily on fossil fuels, particularly oil and natural gas. Germany and Poland are the biggest coal producers within the EU, while Russia and Norway are the leading producers outside the EU. The energy crisis and the conflict between Russia and Ukraine have highlighted Europe's dependence on imported fossil fuels, with Russia being the main supplier until 2021. To reduce this dependence, the EU aims to increase renewable energy sources, with some countries like Denmark, Portugal, and Greece already generating over 50% of their power from renewables.
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What You'll Learn
Fossil fuel consumption in the EU fell to a record low in 2023
Fossil fuel consumption in the EU fell to a record low in the first half of 2023, with a 17% drop in electricity from fossil fuels compared to the same period in 2022. This decrease was driven by a significant fall in electricity demand, particularly in coal and gas generation, which declined by 23% and 13%, respectively. The EU has been steadily reducing its consumption of fossil fuels over the last few decades, with a notable decline in the past ten years.
In 2021, fossil fuels accounted for 70% of gross available energy in the EU, a decrease from 71% in 2019. This percentage has been steadily declining since 1990, when it was first measured, due to an increase in renewable energy sources. The EU has set a goal to reach climate neutrality by 2050, which involves phasing out fossil oil and gas and replacing them with synthetic fuels and renewable energy sources.
While the EU has made progress in reducing its fossil fuel consumption, it still relies heavily on imported fossil fuels, with a 62.5% import dependency in 2022, the highest level since 1990. This dependence on imports has been highlighted by the energy crisis and Russia's invasion of Ukraine, which disrupted the supply of oil and gas to the EU. Germany, in particular, has been heavily dependent on Russia for its energy imports.
To reduce their dependence on imported fossil fuels, the EU and Germany are focusing on expanding renewable energy sources and increasing energy efficiency. Germany has set interim greenhouse gas emission targets and plans to achieve climate neutrality by 2045. The EU's goal is to reach climate neutrality by 2050, and it will need to continue electrifying and increasing the use of renewables to meet its climate goals.
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$102 $77.5
Oil is the EU's main fuel source
Oil is largely used as a motor fuel and to produce petrochemicals in the EU. The transport sector is the main consumer of petroleum products, with road transport being the key consumer with 47.5% of consumption in 2018. Oil-based fuels power millions of automobiles, aircraft, and ships globally, 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 include heating homes and businesses, and the production of plastics and chemicals.
While the EU has been working to increase the use of renewable energy sources, oil remains the most significant energy source for the European economy. The contribution of renewable energy sources has been constantly increasing, surpassing solid fossil fuels in 2018. However, the EU's production of solid fossil fuels has been in decline over the last two decades, and the use of oil and natural gas slowly increased between 2014 and 2017.
The EU has been heavily dependent on imported fossil fuels, with Russia being the main supplier of oil and natural gas until the end of 2021. Following Russia's invasion of Ukraine in February 2022, imports from Russia decreased substantially due to sanctions and the war's impact on trade and infrastructure. The EU agreed in March 2022 to phase out its dependency on Russian fossil fuels due to concerns over energy supply security. The expansion of renewable energy sources is seen as a key solution to reducing the EU's import dependence on fossil fuels.
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The EU's fossil fuel import dependency is increasing
The European Union's (EU) fossil fuel import dependency has been increasing over the years. In 2018, the EU imported 62.5% of the energy it consumed, the highest level of dependency since 1990. This is a significant increase from 1990 when import dependency was 50.1%. The EU's prosperity and security depend on a stable and affordable energy supply, with energy representing 62% of total imports from Russia in 2022, costing €99 billion. The EU has implemented measures to reduce its dependence on Russian energy imports, such as the REPowerEU plan, which aims to diversify supplies, reduce demand, and increase green energy production.
Russia's invasion of Ukraine has further highlighted the EU's dependence on imported fossil fuels, with Russia being the main supplier of oil and natural gas to the EU until 2021. The energy crisis has also contributed to the increase in import dependency, with imports of oil, gas, and solid fuels making up about 28% of total extra-EU imports in 2022, a substantial increase from 18% in 2021. The EU has recognized the need to reduce its dependence on energy imports, with the International Renewable Energy Agency (IRENA) predicting a dramatic change in the overall dependence on energy imports as the expansion of renewable energy sources continues.
Germany, in particular, remains heavily dependent on imported fossil fuels, with its largest domestic fossil fuel source being coal, despite a decrease in consumption in recent years. The German government has introduced interim greenhouse gas emission targets and plans to achieve climate neutrality by 2045, which will likely eliminate fossil fuels from its energy mix. The EU as a whole aims for climate neutrality by 2050 and is working towards increasing its production of renewable energy sources.
While the EU has made progress in reducing its dependence on Russian fossil fuels, it still relies heavily on imports from other countries. Norway, for example, has become the largest supplier of pipeline gas to the EU. The expansion of renewable energy sources is seen as a key solution to reducing import dependency, with renewable energy sources constantly increasing and surpassing solid fossil fuels in 2018. However, the transition to renewable energy sources may require the use of synthetic fuels, which Germany and other countries may need to import due to limited space for generating electricity from renewables.
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Germany and Poland are the EU's biggest coal producers
Fossil fuel consumption in Europe has been on a downward trend over the last two decades, with renewable energy sources surpassing solid fossil fuels in 2018. Oil remains the most significant energy source for the European economy, with natural gas coming in second. Germany and Poland are the EU's biggest coal producers, and Germany, along with the EU, remains heavily dependent on imported fossil fuels.
Germany has introduced interim greenhouse gas emission targets with the Climate Action Law to reach climate neutrality by 2045. This plan should eliminate fossil fuels from Germany's energy mix. As fossil oil and gas are phased out, synthetic fuels are being used to replace them. Renewable electricity is converted into hydrogen, methane, or synthetic petrol to serve as energy sources.
The EU aims for climate neutrality by 2050. To achieve this, OECD countries must stop burning coal for power by 2030. The federal government strongly bets on green hydrogen to achieve its climate goals. However, Germany will need to import significant amounts of these green fuels due to limited space for generating electricity from renewables.
Russia was the main supplier of oil and natural gas to the EU until the end of 2021. Germany also relied on Russia as its primary source of oil, gas, and hard coal. Following Russia's invasion of Ukraine in February 2022, imports from Russia decreased due to sanctions and the war's impact on trade and infrastructure. Europe has made progress in reducing its dependence on Russian energy supplies, and renewables expansion is seen as a key solution to the energy crisis.
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The EU's top fossil fuel companies include BP and Shell
BP has promised not to hunt for oil in any new countries. The company is also equipping itself with renewable energy revenue streams to provide economic stability and encourage a sustainable outlook on energy consumption. BP's Chief Executive Officer, Bernard Looney, has stated that the company is delivering for its shareholders while transforming. BP is also building its network of services, supplying its own EV chargers through the BP Pulse name.
Shell has delayed new fields in the Gulf of Mexico and the North Sea. The company has turned its attention to sustainable solutions, including renewable energy and EV charging. Shell's CEO, Wael Sawan, has acknowledged the challenges in the transition from fossil fuels but has expressed excitement about the opportunity to rewire the entire energy system. Shell has won deals to build wind farms and is expanding its electric vehicle charging business.
Both companies are among the top five polluters, with European "green" funds investing billions in them. Despite this, there is skepticism about whether these century-old companies can successfully transition to cleaner energy.
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Frequently asked questions
In 2021, fossil fuels made up 70% of gross available energy in the EU, remaining unchanged from 2020.
In the first half of 2023, fossil fuels generated 33% of the EU's electricity demand, falling to a record low.
Oil (crude oil and petroleum products) is the most significant energy source for the European economy, followed by natural gas.
In 2021, Malta (96%) had the highest share of fossil fuels in gross available energy, followed by Cyprus and the Netherlands (89%), Ireland and Poland (88%).
Yes, Europe is gradually reducing its consumption of fossil fuels. Between 1990 and 2021, the share of fossil fuels in gross available energy decreased by 13 percentage points.
