H.R. 1616, The European Energy Security and Diversification Act of 2019, is a bill in the U.S. Senate that aims to incentivize and assist European and Eurasian countries to develop and utilize diverse energy sources. H.R. 1616, that Representative Adam Kinzinger introduced and nine other Representatives co-sponsored, focuses on European energy security that will incentivize American investment into European and Eurasian energy infrastructure and energy markets. According to the European Commission, European energy access is a problem for many Europeans.
The European Commission estimates that between 50 and 125 million people (at the highest estimation, 17 percent of the European population) in Europe are unable to afford the energy necessary for proper indoor thermal heating. H.R. 1616 would directly benefit these individuals, the energy poor, because of the introduction of more cost-effective energy infrastructure, an increase in accessibility in the energy markets.
European Energy Security
The Council of European Development Bank reports that energy poverty is a result of poor energy infrastructure and of the inaccessibility to energy markets. Because the majority of energy insecure homes are already poor, the lack of access to energy compounds the effects of poverty. The choice between energy and food, for instance, is a common choice for those in the bottom 20 percent of the income distribution. In Europe particularly, the lack of energy infrastructure across borders is detrimental; 85 percent of those who are energy insecure live in 10 of the 32 European states. Meanwhile, natural gas is 20 percent of the energy in Europe and coal makes up 20 percent of European energy markets. Both are inefficient and the grid infrastructure makes gas and coal inaccessible.
H.R. 1616 Policy Goals and Income
H.R. 1616 would increase access to energy markets by funding the transition away from natural gas and coal through aid, increasing European access to the American energy market and funding accessible infrastructure. The bill also allocates $579.5 million to help properly create supply routes throughout Europe, and between European states, which would ensure rural access to energy. H.R. 1616 would also negotiate cross-border energy infrastructure, including negotiating environmental standards and the accessibility of an array of energy sources.
The E.U. has been diversifying some forms of energy in the status quo by increasing energy production in the Baltics on the Mediterranean Sea and the Adriatic Sea. However, Europe would be unable to sustain the diversification of energy on its own due to current regulatory restrictions that the U.S. put in place, as well as the economic barrier of opening new markets. H.R. 1616 would raise the regulatory restrictions and fund the new markets, allowing for Europe to continue to decrease energy insecurity in its states.
A Lasting Effect
H.R. 1616 will decrease energy insecurity in Europe, alleviating the effects of poverty in the lowest echelons of society, and fund the transition away from unsuccessful forms of energy production. The infrastructure that H.R. 1616 would build would increase access to energy and allow cross-border energy trade, making sure that poor states have access to energy. The current European trend of diversifying energy would continue, ensuring European energy security and diversification. The House passed the bill, and the Senate has read it and referred it to the Committee on Foreign Relations for further review.
– Denise Sprimont