Joint statement on the US-EU Energy Security Task Force
April 3, 2023
1. ACHIEVEMENTS AND MILESTONES
A year ago this week, the United States and the European Union (EU) established a joint US-EU Energy Security Task Force created by Presidents Biden and von der Leyen. The task force has made great progress towards its goals of reducing the EU’s dependence on Russian energy, including by diversifying its gas supply in line with its climate targets and reducing its overall demand for gas.
The United States has more than doubled its goal of securing the delivery of an additional 15 billion cubic meters (bcm) of liquefied natural gas (LNG) to the EU. Last year, US exports to the EU were 56 bcm, up from 22 bcm in 2021. The EU was the top destination for US LNG exports, accounting for more than 52 percent of shipments. At the end of 2022, Russian gas accounted for just 16 percent of EU gas imports, down from 37 percent in March 2022.
Between August 2022 and January 2023, the EU reduced its overall demand for natural gas by 19 percent, including by reducing electricity consumption, improving energy efficiency in the residential sector, identifying new digital solutions that can save consumers money, and complementing other demand-side funds.
The US-EU Energy Security Task Force builds on long-standing transatlantic cooperation within the US-EU Energy Council and is the result of a shared commitment to reducing the EU’s dependence on Russian energy and accelerating the world’s clean energy transition an unjustified and unprovoked Russian military aggression against Ukraine. The United States and the EU have pledged to meet the Paris Agreement goals of achieving net-zero emissions by 2050 and keeping a 1.5-degree limit on temperature rise within reach.
The Task Force provides an important platform for regular information exchange between the United States and the European Commission. To this end, the task force monitors the energy security situation in the EU and neighboring countries and progress in reducing dependence on fossil fuels. The task force discussed global LNG markets and market forecasts, the regulatory environment and permitting prospects in the United States and the EU, the development of US LNG export capacities, the strengthening of EU LNG infrastructure, and the EU energy platform and common Purchasing discussed. In addition, the task force has helped find solutions to meet EU emergency energy security goals to ensure adequate levels of gas storage ahead of the winter season.
Recognizing that clean energy, energy efficiency policies and demand flexibility policies are essential to improve energy security and accelerate the energy transition, the task force shared information on policy and market solutions to accelerate the deployment of energy efficiency technologies, heat pumps and smart Thermostats and related awareness-raising activities among consumers and relevant stakeholders. The task force also discussed solutions to reduce gas and electricity consumption and costs through flexible demand-response mechanisms that reward customers for reducing or switching their energy consumption.
Task Force meetings will be chaired by Björn Seibert, Head of Cabinet to the President of the European Commission, and Amos Hochstein, US Senior Advisor for Energy Security. Ditte Juul Jørgensen, the European Commission’s Director-General for Energy, and Sarah Ladislaw, the President’s Special Assistant and Senior Director for Climate and Energy at the White House National Security Council, are also leading. The task force reports to President von der Leyen and President Biden. The task force meetings are also attended by senior officials from the US Department of State, the US Department of Energy, the European Commission’s Directorate-General for Energy, and representatives from the European External Action Service. These meetings are also attended by representatives of the private sector and NGOs to hear different perspectives relevant to these issues.
2. NEXT STEPS AND OUTLOOK
In 2023, the task force will continue to focus on the energy market shocks and high energy prices caused by Putin’s war of aggression against Ukraine. Russia uses energy as a weapon to undermine European security. The task force’s priorities for 2023 include: 1) Continued assessments of LNG markets and securing $50 billion US LNG shipments.
In the coming months, the task force will continue to work to maintain a high level of US LNG shipments to Europe in 2023 of at least 50 billion cubic meters. This is necessary in view of the challenging supply situation and to ensure that the storage tank is filled for the next winter of 2023/24.
The EU Energy Platform will launch its first joint tenders in May 2023 under Aggregate EU, a new means of demand aggregation and joint purchasing. Such tenders are open to all non-Russian gas sellers. The task force has facilitated cooperation with the US LNG industry on the EU Energy Platform and its forthcoming implementation to bring US LNG to Europe.
In addition, the task force will help implement US and EU efforts to reduce methane emissions, both in bilateral trade and at the global level, by supporting national and international actions to promote increased monitoring, reporting and verification, and transparency, z Data on methane emissions in the fossil fuel sector. As discussed at the November 2022 task force meeting, both sides also plan to pursue initiatives to reduce flaring, venting and leakage in oil and gas value chains, including through innovative procurement frameworks to incentivize the extraction of this gas create to bring it to market like the ‘you collect, we buy’ approach proposed by the EU. The task force will continue to facilitate these efforts to reduce methane emissions and increase the liquidity of natural gas, thereby minimizing flaring, methane and CO2 emissions throughout the value chain.
Recognizing the importance of energy efficiency and demand flexibility as key factors in improving energy security, the United States and the European Commission are preparing a series of other sub-dialogues in the Energy Savings Workstream. Beginning in early 2023, the sub-dialogues will explore deeper collaboration and ways to encourage utilities and consumers to implement short- and medium-term energy efficiency solutions to reduce electricity and gas consumption, shift demand from peak to off-peak hours, and target digital solutions that Helping consumers save money on their bills.
The task force will also facilitate the exchange of best practices on energy saving and energy efficiency programs and organize a dedicated discussion on implemented and planned demand response measures by EU Member States. These actions will build on Europe’s impressive success in reducing its energy consumption as a means of improving its energy security. Europe has shown remarkable progress in completing large-scale clean energy infrastructure projects in an accelerated timeframe to respond to the energy crisis, and the task force will examine ways to exchange best practices to ensure the continued rapid deployment of large-scale clean energy technologies across the EU. In addition, both sides intend to organize a high-level business roundtable on energy conservation and renewable energy on April 3, 2023 in conjunction with the task force and back-to-back with the US-EU Energy Council on April 4, 2023.
The task force will continue its work as determined by President von der Leyen and President Biden at their March 10, 2023 meeting.
