Brussels and Washington talk cooperation at 10th EU-US Energy Council
The 10th EU-US Energy Council took place in Brussels this week. The Energy Council is an annual summit where the EU and US coordinate their stances on issues related to energy policy such as cooperation on energy security, the shift to cleaner forms of energy and cooperation on meeting the Paris Agreement targets. This was the first Council since Russia’s invasion on Ukraine, and thus, of particular importance.
Established in 2009, the EU-US Energy Council is the lead transatlantic coordination forum on strategic energy issues. The Council meets on an annual basis to deepen transatlantic dialogue and cooperation on energy security, technology and markets. Together, the EU and US work to accelerate a just transition to climate neutrality for citizens of the EU and US. The Council also works to promote research and development, innovation and deployment in related fields.
The latest Energy Council was chaired by EU High Representative/Vice President Josep Borrell, Commissioner for Energy, Kadri Simson, US Secretary of State Anthony Blinken and US Deputy Secretary of Energy David M. Tulk.
During this year’s Summit, the US confirmed it would keep sending large supplies of liquified natural gas (LNG) to the EU as the bloc continues its efforts to reduce its energy dependencies on Russia. Last year, the EU imported some 56 billion cubic metres of US LNG, over double the amount from the previous year. Now, the US has committed to send “at least 50 bcm” to the EU in 2023. This development comes as the EU and US continue to step up their combined efforts at ensuring energy security in light of Russia’s war of aggression against Ukraine. Speaking after the meeting, Secretary of State Anthony Blinken said that “over the past year, the United States and Europe have thrown their energy security cooperation into even higher gear”. In a joint statement, the EU and US recognised “the unprecedented intensification of cooperation, coordination and exchanges between the two sides in the context of Russia’s war of aggression”.
US supplies of LNG proved particularly crucial for Europe throughout winter as EU leaders feverishly worked to reduce their dependency on Russian energy supplies. Prior to Russia’s invasion of Ukraine, Russia accounted for over 40% of the EU’s gas demand. This has fallen to approximately 12%. The EU is now working to meet gas storage targets ahead of next winter. Welcoming the commitment by the US to provide the EU with further LNG, Commissioner Simson said she believed “this is not a temporary solution”, but rather “marks a structural change in Europe’s energy outlook and trade orientation.
The latest Council meeting came at a time when EU and US ties continue to deepen, despite ongoing discussions surrounding the potential impacts of the US Inflation Reduction Act on the European economy. As noted by Blinken, “US-EU relations have never been stronger or more important for advancing our shared interests” particularly after over a year of war in Ukraine, “the stakes for our partnership could not be higher for the transatlantic relationship and Ukraine itself”.