European Commission Unveils AccelerateEU Strategy to Cut Fossil Fuel Dependence

The European Commission has released its AccelerateEU strategy, outlining measures to reduce the EU's reliance on imported fossil fuels and tackle rising energy costs through accelerated electrification and domestic clean energy deployment. The plan includes a commitment to present a dedicated Electrification Action Plan with an ambitious electrification target across industrial, transport and building sectors.

The strategy was presented in response to ongoing energy price disruptions linked to the Middle East conflict and long-standing concerns about EU dependency on fossil fuel imports. The Commission noted that the EU has spent an additional €24 billion on energy imports as a result of supply disruptions. Near-term measures include income support schemes, energy vouchers, social leasing, and lowering excise duties on electricity for vulnerable households, alongside coordination among member states on gas storage and oil stock releases.

The longer-term structural elements of AccelerateEU focus on electrifying transport, industry and buildings, advancing the European Grids Package proposed in December 2025, and mobilising private investment through a planned Clean Energy Investment Summit. The strategy explicitly links energy security with decarbonisation, reflecting the Commission's argument that reducing fossil fuel dependence simultaneously reduces geopolitical exposure and climate risk. Commission Executive Vice-President Teresa Ribera noted that citizens and businesses 'are paying the price of our dependency' and called for a lasting shift to homegrown clean energy.

The AccelerateEU strategy is expected to evolve into binding legislative proposals as the Electrification Action Plan is developed. The Commission is working to bring together institutional investors, industrial leaders and public financiers to accelerate private financing for batteries, charging infrastructure and electrification technologies. Clarity on the electrification target level will be critical for supply chain investors globally, including those in India's growing clean energy manufacturing sector, which exports components to Europe and stands to benefit from rising EU demand for domestically produced clean equipment.

Key figure — €24 billion additional EU spending on energy imports