EU Climate Commissioner Wopke Hoekstra has declared there is no financial “workaround” for soaring energy prices in Europe, warning that countries’ high debt levels limit their ability to support citizens amid the latest crisis. Speaking during a visit to cleantech firms Ecocem and Verkor in Dunkirk, Hoekstra emphasized that the only solution lies in accelerating green investments.

With the EU facing a €22bn price shock from Middle East conflict, Hoekstra called for rapid expansion of electrification, nuclear, solar, wind, battery capacity and grid interconnections. The European Commission is preparing to recommend widespread electrification plans to member states next week to tackle surging costs and fossil fuel dependence. The commission will also propose new rules to reduce electricity grid charges and ensure electricity is taxed below fossil fuels.

Despite calls from several EU finance ministers for an EU-wide windfall tax on energy companies, Hoekstra warned such measures are legally complicated with significant economic side effects. The climate commissioner, a former Shell employee, noted that 90 percent of emissions trading system revenue currently fails to fund industrial transformation. He stressed that any flexibility on extending free allowances to heavy industry must be tied to companies investing in decarbonization, arguing that support should come with the quid pro quo of cleaner operations and European investment.