Over the past five years, Europe has faced two major energy price shocks linked to geopolitical conflict: first following Russia’s invasion of Ukraine in 2022, and more recently amid renewed instability in the Middle East.
Both crises have exposed how strongly Europe remains tied to global fossil fuel markets, where supply disruptions and political tensions quickly translate into higher bills for households, businesses, and public services. It is a familiar lesson first felt during the oil shocks of the 1970s, when dependence on imported fossil fuels created economic disruption across the continent.
AccelerateEU: the European Commission’s response
In response to the 2022 crisis, the European Union launched REPowerEU to reduce dependence on Russian fossil fuels and speed up the clean energy transition. Last week, the European Commission followed with AccelerateEU, a new package designed to provide immediate relief from price spikes while accelerating the shift to clean, secure and affordable energy.
AccelerateEU is built around five pillars: stronger EU coordination between Member States, protecting consumers and businesses from sudden price peaks, expanding homegrown clean energy, modernising Europe’s energy system and grids, and boosting public and private investment in the transition.
The local dimension of accelerating this shift
While many of these measures focus on national and European action, they also have a strong local dimension. Cities and towns are where buildings are renovated, district heating networks are upgraded, solar panels are installed, streets are redesigned, and vulnerable residents can be better protected.
Across Europe, local governments are proving that climate action is also protection from price volatility. By investing in clean heating, renewable power, energy efficiency, and climate-resilient urban design, municipalities are helping residents and businesses weather price shocks while building stronger local economies.
Cities detoxing heating systems
Heating remains one of the biggest sources of fossil fuel dependence in Europe – with fossil-fuelled heating, representing 72% of buildings’ heating in Europe today. Cities are changing that by replacing outdated systems with cleaner, locally sourced alternatives.
Through district heating networks, building renovation, waste heat recovery, and renewable heat sources, municipalities are reducing reliance on imported gas while improving long-term affordability and resilience.
This directly supports AccelerateEU’s goals of consumer protection, clean energy deployment, and stronger energy security.
The EU Covenant’s Cities Heat Detox inititative showcased over 50 cities’ efforts in detoxing their cities for fossil-free heating.
Cities growing energy at home
Europe’s cities are also expanding homegrown renewable energy through solar, wind, battery storage, and support for citizen-led energy communities.
These local investments help stabilise prices, keep energy revenues within communities, and give residents greater control over their energy future.
This is the local face of AccelerateEU’s push for more homegrown clean energy and faster electrification.
The EU Covenant’s Homegrown Energy initiative is gathering wide-ranging examples of municipalities promoting and supporting community-led homegrown energy in both urban and rural contexts.
Cities saving energy for the long term
Back in 2022, in response to the energy crisis provoked by Russia’s invasion of Ukraine and line with RepowerEU, the EU Covenant of Mayors launched the Cities Energy Saving Sprint. This initiative rallied local authorities in efforts to put in place measures to save energy and cushion the effects of the crisis.
Cities showcased how they were lowering thermostats, but also improving buildings, upgrading public lighting, rethinking mobility, and modernising public services to cut demand and reduce costs. This protects municipal budgets while lowering bills for residents.
However, these measures and their impacts have proven to be beneficial beyond the crisis – with a positive long-term effect on cities’ emissions, health and budgets. In many cities, emergency energy-saving measures introduced during the crisis helped them accelerate actions already part of their long-term strategies.
Such actions reinforce AccelerateEU’s objective of shielding consumers while reducing structural energy demand.
Cities refreshing for a hotter future
As heatwaves become more frequent, cities are also reducing summer energy demand through smarter urban design. Between 2010 and 2019, final energy use for cooling in residential buildings across the eurozone tripled, and forecasts suggest that by 2050, cooling alone could account for up to 9% of total energy use.
By adding nature to streets and public spaces, improving building design, adopting district cooling, and ensuring access to cool public spaces, municipalities can reduce air-conditioning demand, protect public health, and improve quality of life.
This complements wider efforts to build a more resilient and efficient energy system fit for future climate pressures.
The EU Covenant’s Cities Refresh initiative put this clearly in the spotlight by showcasing the diverse and innovative ways in which cities were working to reduce rising energy demands for cooling.
Stronger, safer, future-ready cities
The energy shocks of recent years have reinforced a lesson Europe has known since the 1970s oil crisis: dependence on fossil fuels creates vulnerability.
As AccelerateEU sets the direction at EU level, Europe’s municipalities are showing what delivery looks like on the ground: practical solutions that free cities from fossil fuel dependency and prepare communities for whatever comes next.
Details
- Publication date
- 27 April 2026