On February 26, 2025, the European Commission presented the "Action Plan for Affordable Energy", which aims to reduce annual energy costs in the EU by 260 billion euros by 2040. This plan is a central component of the "Clean Industrial Deal" and is intended to strengthen Europe's competitiveness, complete the Energy Union and drive forward decarbonization.
Core measures of the plan
The action plan is based on four pillars:Representation in Germany
Reduction in energy costs: The reduction in grid fees, taxes and levies is intended to ease the burden on consumers and companies. The aim is to bring energy prices to a globally competitive level.Representation in Germany
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Completing the Energy Union: The expansion of cross-border energy connections and the integration of energy markets should increase security of supply and ensure price stability.
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Promotion of investments: Targeted measures are intended to attract investment in renewable energies and infrastructure projects in order to accelerate the energy transition.
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Preparing for energy crises: The plan includes strategies to strengthen the resilience of the energy system against future price shocks and supply bottlenecks.
Expected savings and economic impact
The Commission forecasts savings of 45 billion euros in 2025, rising to 130 billion euros by 2030 and 260 billion euros by 2040. These savings correspond to around 1.2 % of EU GDP and are intended to ease the burden on both households and companies.European Commission
Integration with existing initiatives
The action plan complements existing programs such as the "REPowerEU" plan, which aims to reduce dependence on fossil fuels and diversify the energy supply. By combining these initiatives, the EU aims to achieve its climate targets and at the same time ensure economic competitiveness.
Challenges and next steps
The implementation of the plan requires the cooperation of all member states, especially in the harmonization of regulations and the mobilization of investments. The Commission plans to present concrete measures to speed up approval procedures for renewable energy projects and improve market integration by the end of 2025.
Conclusion
The "Action Plan for Affordable Energy" represents a significant step towards a sustainable, secure and competitive energy system in Europe. By combining cost reduction, market integration and investment promotion, the EU is sending a strong signal for its long-term energy and economic policy.
Sources:
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European Commission: New action plan to reduce energy costsRepresentation in Germany+4European Commission+4European Commission+4
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EUR-Lex: Action Plan for Affordable Energy - COM(2025) 79 finalEUR-Lex
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Reuters: EU Commission proposes measures to aggregate LNG demandReuters+1Reuters+1
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Clean Air Task Force: Europe's Clean Industrial Deal and the Affordable Energy Action PlanClean Air Task Force+1European Commission+1
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The Guardian: EU presents plan to reduce greenhouse gas emissions by 90 % by 2040The Guardian
Drivers of the price increase
Several factors are contributing to this increase:
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Energy transition and electromobility: Copper is a key component in the manufacture of electric vehicles, solar panels and wind turbines. An electric car requires around 80 kg of copper, while a conventional vehicle only uses around 23 kg. The International Energy Agency forecasts that almost half of the world's electricity will come from renewable energies by 2030, which will further drive demand for copper. metal.comviridianmetals.com
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Increase in investments: Institutional investors and hedge funds are increasing their exposure to the copper market in anticipation of further price increases due to the ongoing shortage.
Challenges on the supply side
While demand is increasing, there are several challenges on the supply side:
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Decrease in ore content: Many existing copper mines are experiencing falling ore grades, which is making production more expensive and slowing it down.
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Delays in new projects: The development of new mines requires considerable investment and time. According to UNCTAD, around 80 new mines and investments amounting to 250 billion US dollars could be required by 2030 in order to meet rising demand. UN Trade and Development (UNCTAD)
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Geopolitical risks: In countries such as Peru, Chile and Indonesia, which together account for over 40 % of global copper production, political uncertainty and regulatory changes are leading to production shortfalls and delays in projects. streetwisereports.com
Outlook
Experts predict that the price of copper could rise to up to USD 5.44 per pound by 2026, which corresponds to an increase of around USD 11 % compared to the current price. The combination of rising demand and limited supply could shape the copper market in the coming years.euronews
For investors and companies, this means that copper is playing an increasingly strategic role in the global economy. Developments on the copper market should therefore be monitored closely, as they harbor both opportunities and risks.
Note: This article is based on current market analyses and forecasts. Actual developments may differ from the scenarios presented here.
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