Media: EU faces energy dependency risks in US trade deal

While much attention has been given to the headline 15% tariffs in the new trade deal between the European Union and the United States, experts warn that the devil is in the details — and these finer points could tie Europe into a costly and risky energy dependency on America.

The agreement commits the EU to spending $750 billion over three years on US oil, liquefied natural gas (LNG), and coal imports, Caliber.Az reports, citing foreign media.

But analysts from the Washington-based Institute for Energy Economics and Financial Analysis (IEEFA) say this target is unrealistic and threatens the bloc’s energy security.

“To meet the $250 billion annual commitment, Europe would need to source nearly 70% of its energy imports from the US,” said IEEFA’s Europe analyst Ana Maria Jaller-Makarewicz. She added that American LNG is more expensive than supplies from other countries, while European gas demand is declining due to ongoing decarbonisation efforts.

Since sanctions cut off Russian gas supplies after the Ukraine war, the US has become Europe’s largest gas provider, accounting for 55% of imports — a figure expected to rise. Critics argue the deal simply replaces one form of energy dependence with another.

Environmental groups, including Greenpeace, have warned that the deal risks locking the EU into fossil fuel imports instead of investing in renewables. François Gemenne, a co-author of the latest UN climate report, accused Brussels of “submission” to the fossil fuel agenda pushed by the US.

Long-term energy contracts in Europe, which carry heavy penalties if broken, further complicate the prospect of redirecting imports swiftly.

IEEFA calculates that the $750 billion could instead nearly double Europe’s solar and wind energy capacity, boosting local industry and reducing reliance on imports.

Despite these concerns, EU leaders argue the deal is necessary to ensure stable energy supplies amid global uncertainties.

By Aghakazim Guliyev