EU Strikes Deal to Curb Energy Use by 2030

Houses of a residential area are pictured in Frankfurt, Germany, Friday, March 10, 2023. (AP)
Houses of a residential area are pictured in Frankfurt, Germany, Friday, March 10, 2023. (AP)
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EU Strikes Deal to Curb Energy Use by 2030

Houses of a residential area are pictured in Frankfurt, Germany, Friday, March 10, 2023. (AP)
Houses of a residential area are pictured in Frankfurt, Germany, Friday, March 10, 2023. (AP)

The European Union struck a deal on Friday to cut final energy consumption across the bloc by 11.7% by 2030, a goal lawmakers said would help fight climate change and curb Europe's use of Russian fossil fuels.

The deal was agreed after all-night talks between negotiators from EU countries and the European Parliament.

Hitting the targets will require countries to renovate millions of draughty buildings to waste less energy. Constructing and using buildings produces a third of EU greenhouse gas emissions, and with most European buildings heated by fossil fuels, the goal is crucial to the EU's efforts to combat climate change.

"This will mean real change for the benefit of the climate and disadvantage of Putin," said Niels Fuglsang, Parliament's lead negotiator.

Negotiators agreed that energy consumed by end-users in the bloc such as households and factories in 2030 should be 11.7% lower than expected use by that date.

The EU had initially proposed in 2021 that the target be a 9% saving, but hiked that to 13% last May in a bid to quit Russian fuels faster after Russia, previously Europe's top gas supplier, invaded Ukraine.

The 11.7% goal was a compromise between the EU Parliament, which had wanted a far higher goal of 14%, and some EU countries who wanted to stick to the original 9% aim.

The target will be legally binding. Countries will set their own non-binding national goals - but if they do not add up to the 11.7% goal, the European Commission will correct them.

From 2024 to 2030, countries will have to save an average of 1.49% of final energy consumption per year.

Countries will have to speed up their renovations of public buildings, renovating at least 3% of the total floor area of publicly-owned buildings each year.

The deal will now go to the European Parliament and EU countries for a final vote - which is usually a formality that approves the law with no changes.



Oil Prices Reset as Supply Uncertainty Reigns

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Reset as Supply Uncertainty Reigns

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil lost early gains on Tuesday and prices were back near their previous close in the face of uncertainty over how supply will be affected by Ukraine-Russia peace talks, international trade tariffs and OPEC+ crude output.

Brent crude futures were up only 1 cent at $75.23 per barrel by 1242 GMT, retreating from $76.07 earlier in the session.

US West Texas Intermediate crude futures were up 51 cents from Friday's close to $71.25 a barrel. There was no settlement for WTI on Monday because of the US Presidents' Day holiday, Reuters reported.

"Each rally seems to find willing sellers, whether or not it is because of neighbouring technical numbers that keep movement trapped or notions of a war settlement topped with tariffs is hard to tell," said John Evans of oil broker PVM.

"Day trading and short-term flows are ruling the fate of oil prices at present."

US and Russian officials held more than four hours of talks in Riyadh on Tuesday, their first on ending the war in Ukraine. But Moscow made a new demand: that NATO cancel its 2008 promise on Ukraine membership.

Ukraine was not at the talks and has said that no peace deals can be made on its behalf.

If a deal is reached, Washington and its allies could abandon sanctions throttling the supply of Russian oil to the world.

Oil prices were bolstered on Tuesday by a Ukrainian drone attack on a Russian pipeline that pumps about 1% of global crude supply.

The damage could reduce oil transit volumes from Kazakhstan by about 30% and take up to two months to repair, Russian oil transport company Transneft said.

Another question hanging over oil markets is whether OPEC+ is considering a delay to monthly supply increases scheduled in April.

Russian state media said the group's members were not looking to hold off from the increases after Bloomberg News reported that OPEC+ members were exploring a possible delay.