Speech by President von der Leyen at the European Parliament Plenary on the conclusions of the European Council meeting of 20-21 October 2022

Thank you Madam President, dear Roberta,

President Michel, dear Charles,

Honourable Members,

The magnitude of the energy crisis calls for both a sense of urgency and strategic foresight. We have made more progress than we thought ever possible. Since the beginning of the war, Putin has cut 80% of his exports of pipeline gas to Europe. In only eight months, we have managed to replace most of it. For instance, we have more than doubled our imports of LNG from the US – from 22 bcm last year, to 48 bcm this year so far. This has made it possible to fill our storages by 95%. And at the same time, we have reduced our gas consumption by 15%. I have not forgotten how Putin tried to put pressure on us, how some feared for blackouts in Europe when the war started. Not only did this dark scenario not materialise but now we are fully prepared for the winter. And crucially, gas prices have dropped by roughly two-thirds compared to August. We have all played our part to make this happen – and I think we can all be proud of it.

Meine Damen und Herren Abgeordnete,

in den zurückliegenden Wochen, haben wir an einem ganzen Bündel von Maßnahmen gearbeitet, um die Preise zu drücken. Eine Preisbremse im Gasmarkt ist auf dem Weg. Wir haben Mitgliedsstaaten ermöglicht, Zufallsgewinne von Energieunternehmen abzuschöpfen, um einkommensschwache Haushalte und besonders energieintensive Betriebe zu unterstützen. Der gemeinsame Einkauf von Gas. Und natürlich die Arbeit an einem besseren Design unseres Elektrizitätsmarktes.

Dennoch ist schon heute absehbar, dass die nächste Füll-Periode für unsere Gasspeicher eine noch größere Herausforderung wird. Denn spätestens ab Frühjahr müssen wir drei weitere Faktoren zu unseren Ungunsten einkalkulieren: Zuerst ist da das Risiko, dass Russland die Gasversorgung nach Europa vollständig einstellt. Zweitens steht schon heute fest, dass weltweit die zusätzlichen Flüssiggas-Kapazitäten nächstes Jahr nicht ausreichen werden, um diese Lücke zu füllen. Drittens müssen wir damit rechnen, dass Asien – wenn die Wirtschaft wieder anspringt – den Löwenanteil dieses zusätzlichen Flüssiggas-Angebots aufsaugen wird. Im Ergebnis können diese Faktoren zu einem erheblichen Risiko führen, dass Europa am Ende des kommenden Sommers etwa 30 Milliarden Kubikmeter Flüssiggas fehlen, um die Speicher auf die aktuellen Füllstände vor dem Winter zu bringen. Wir müssen handeln.

Honourable Members,

We are getting prepared to tackle these risks – and in doing so we are setting the right course for the future. Because our choices today will determine whether we have the energy we need for 2023 and beyond. But we have to act now.

This is why today I would like to focus on two topics that will be crucial. First, on renewables. It is no exaggeration to say that we stand at a crossroads. Either we ignore the lessons of this crisis and fall again into the trap of a carbon lock-in for the future. Or we use this crisis to leapfrog to clean energy. This is not only good for the climate, but also for our energy security at a time when gas is and will stay a scarce commodity. The good news is that we are ready to accelerate. By the end of the year, we will have achieved the largest growth in renewables in the history of our European Union. A further 50 gigawatts – which is double what we added last year. And we could accelerate even more. There are countless renewable projects that are just waiting to be approved. Some could deliver cheap energy immediately, in a matter of weeks or months. I am thinking, for instance, about solar panels on existing buildings, or the repowering of wind parks.

But too many of these projects are stuck because of long permitting procedures. Our new Renewable Energy Directive – that you have already voted in Plenary – will address this. But it will take time – well over a year – before it is translated into national law by all Member States. With the extraordinary circumstances our citizens and industries are facing, we do not have the luxury of time.

This is why today we are proposing a new emergency regulation under Article 122 to immediately speed up permitting for renewable energy projects with a rapid impact. This proposal will be limited in time and scope. And it will be in line with what you have voted on. It will bridge the gap until the new Renewable Energy Directive comes into force. And by doing so, we can unblock a myriad of renewable projects already in the next 12 months. According to calculations by the IEA, we could replace 14 bcm of gas already next year. That is almost half of our potential gap, just by speeding up the permitting of these projects. This is realistic and we can pull this off together.

Mesdames et Messieurs les Députés,

Mon deuxième point: nous devons sauvegarder la compétitivité de l'industrie européenne. Ce travail commence chez nous, en Europe. Nos industries intensives en énergie, comme la chimie, l'acier et le verre, ont besoin d'un accès sûr à une énergie bon marché. Mais dans ces temps exceptionnellement durs, les prix ont augmenté considérablement, comparés à nos principaux concurrents. Beaucoup de nos entreprises sont en grande difficulté.

C'est pourquoi nous avons mis à jour notre Cadre temporaire de crise en matière d'aides d'État. Et nous avons augmenté les plafonds d'aides d'État pour les PME et les industries intensives en énergie. Mais pas tous les États membres ont les moyens d'accorder des aides d'État, alors même que tous les États membres ont besoin d'augmenter et d'accélérer leurs investissements pour réduire la demande d'énergie et pour accroître la production de renouvelables.

Honourable Members,

This is where REPowerEU comes into play. If we boost the financial firepower of REPowerEU, we will ensure that all Member States have the possibility to realise these critical investments. In other words, this would give every Member State the same opportunity to prepare for the future, and, at the same time, some fiscal space to support vulnerable businesses and households. This work is also helpful against the background of an intensifying global clean tech race. Because it will keep Europe attractive for industry.

Let me clear: I welcome global competition. This drives innovation, enhances efficiency and ensures progress. At the same time, in order to be effective, this global competition needs to be fair. We need a level playing field. We do not want to see market distortions or discrimination against our companies. Let us make sure this is a race to the top, both for the climate and our industry. That is what Europe stands for and I know also this Parliament.

Long live Europe.