Action Plan for Affordable Energy: Cities and regions call for more targeted support

Local and regional leaders have welcomed that the European Commission is stepping up efforts to tackle energy poverty, strengthen energy resilience and deliver clean energy to EU citizens and businesses, but regret that the European Commission's Affordable Energy Action Plan lacks tailored measures for cities and regions and doesn't take fully into account their crucial role in the energy transition. The opinion led by the Mayor of Łódź Hanna Zdanowska (PL/EPP) was adopted by the European Committee of the Regions on 10 December.

Energy production and consumption account for over 75% of the EU’s greenhouse gas emissions, meaning that decarbonising the EU’s energy system is essential for the EU's climate targets. At the same time, high energy costs currently affect more than 47 million Europeans. The CoR opinion underlines that access to affordable, stable and clean energy is a cornerstone of economic and social development and cohesion, and that the energy transition must take place in a cost-efficient, technology-neutral and socially fair way.

Amid the current geopolitical tensions, the CoR stresses that the EU must safeguard accessible, reliable and predominantly domestic clean energy sources and ensure that regions are energy-independent and self-reliant in cases of blackouts and supply disruptions. The resilience of energy infrastructure must be prioritised against possible military threats and extreme weather events.

Regions and cities recall their pivotal role in providing stable and affordable energy, developing energy infrastructure and engaging communities in the transition. The opinion urges to develop a multilevel governance model where cities and regions act not only as implementers but also as co-designers of EU and national energy policies. This requires equipping local and regional authorities with the competences, skills, resources and targeted support according to their specific constraints, infrastructure gaps and resource availability. The CoR also believes it should be involved in the Energy Union Task Force established by the European Commission earlier this year.

The CoR considers that energy transition must be one of the priorities in the next multiannual EU budget and that local and regional authorities must remain fully empowered in the implementation. It calls on the Member States to adjust their fiscal and budgetary rules so that investments in energy transition at local and regional level are exempted or treated more flexibly. There's also a need to establish new mechanisms to mobilise significant private investment and to boost workforce skills for the energy transition.

Rapporteur Zdanowska welcomed the presentation of the European Grids Package on 10 December, with which the European Commission aims at modernising European grid infrastructure, speeding up permitting procedures and ensuring a fairer division of costs regarding cross-border projects. The CoR is also looking forward to the European Commission's upcoming Citizens’ Energy Package, which it expects to prioritise the development of renewable energy communities and prosumer models, promote consumer-oriented electrification and support the decarbonisation efforts of coal regions in transition.

Considering that the necessary energy efficiency improvements and building renovations disproportionately affect low-income and energy-poor households, the CoR calls for targeted local measures such as municipal renovation programmes, zero-interest loans, support for community-driven energy projects and housing cooperatives, social tariffs and direct financial assistance.

The opinion calls for a binding EU framework to gradually phase out all direct and indirect fossil fuel subsidies, while ensuring energy security, affordability and competitiveness. At the same time, it warns that implementing the ETS2 its current form risks generating a sharp increase in energy poverty and could undermine public trust in climate policy and the EU. It also stresses that the EU’s 2040 emission reduction target, agreed on 9 December, should be accompanied by the enabling conditions for citizens and industry and must be pursued in a way that safeguards competitiveness and long-term stability in the EU.

Quote:

Rapporteur Hanna Zdanowska (PL/EPP), Mayor of the City of Łódź: “No citizen in Europe should have to worry about whether they can heat their home or keep the lights on. Affordable, secure, and clean energy is a basic condition for dignity, development and social cohesion. When discussing the energy transition, we should consider national challenges, opportunities, needs, and socio-economic contexts, as well as the specific characteristics of the regions. And we – local governments, but also our residents and businesses – face many challenges in this transition, from limited financial and organizational resources to legislative and bureaucratic obstacles.” of

More information:

The Affordable Energy Action Plan presented by the European Commission in February 2025 aims to reduce energy costs for households and businesses, complete the Energy Union, strengthen energy security and attract investment in the clean energy sector.

On 10 December, the European Commission presented the European Grids Package and the Energy Highways initiative. The Grids Package aims to bring a truly European perspective on infrastructure planning, while accelerating permitting procedures and ensuring a fairer division of costs regarding cross-border projects. The Commission also announced 8 Energy Highways to address the most urgent infrastructure needs that require additional short-term support and commitment for implementation. 

A recent CoR study on the energy transition provides detailed insights into existing barriers and regional disparities across all Member States in the implementation of the Fit for 55 directives. It highlights that local and regional authorities face significant challenges linked to financial resources, administrative capacity, local community engagement, and regulatory alignment, with significant disparities between the Member States.

Contact:

Lauri Ouvinen
Tel. +32 473536887
lauri.ouvinen@cor.europa.eu