Keynote speech by Commissioner Simson at an event on the EU's energy transition and cooperation with Argentina on energy matters 'Dialogue on Energy Transition and Green Hydrogen'

Speech on EU energy transition & cooperation with Argentina

Ladies and Gentlemen,

Good afternoon to you all.

I'm so pleased to be here to talk about the EU's energy transition and our cooperation with Argentina on energy matters.

Over the past three years, the EU and Argentina have strengthened cooperation on energy policy, in particular on renewable energy, energy efficiency, interconnections, hydrogen and critical raw materials.

But before I get to that, I will briefly explain the EU's energy situation and our efforts to transform our energy system over the past few years.

This is important context in understanding the EU's energy diplomacy and our energy relations with partners around the globe.

Ladies and Gentlemen,

These past few years have been truly defining for the EU's energy system.

Nearly five years ago, at the start of this European Commission's mandate, we presented an ambitious agenda of reform and modernisation called the Green Deal.

In a very short time, we've made impressive progress in putting our economy on a pathway to decarbonisation.

We changed all our climate and energy legislation, we set up new funding instruments at EU level, we redefined how our electricity and gas markets work, we redesigned our energy infrastructure policy.

Then, in February 2022, Russia invaded our ally and neighbour, Ukraine.

This illegal and unjustified aggression brought the horror of war back to Europe.

It also sent our markets into turmoil.

We faced market manipulation and blackmail when the Kremlin began weaponising energy supplies.

At the time, Europe was still very dependent on Russian gas, so this was a pivotal moment for our energy system.

It was not easy.

Energy prices soared.

Inflation rose.

And for the first time in a long time, many Europeans faced the prospect of not being able to pay their next energy bill.

But we withstood the pressure.

We introduced a series of short-term, emergency measures to ease the burden on consumers.

We also resolved to put an end to our dangerous overreliance on Russian fossil fuels.

Under a plan called REPower EU, we united around three common goals: save energy, diversify energy suppliers, and accelerate our clean energy transition.

Two years on, we still face the sad reality of an ongoing war, but the EU continues to give its full support for victory and peace for Ukraine.

Just recently, we began accession talks with Ukraine on EU membership.

As for the energy crisis, we are now on the other side of it.

We spearheaded a radical and deep transformation of our energy system, cutting our dependence on Russian gas and speeding up our energy transition.

Russian gas pipeline imports dropped dramatically from a 45% share of overall EU imports in 2021, to only 15% last year.

In contrast, since 2019, EU wind and solar capacity grew by 65%

Wind capacity climbed by 31%

Solar capacity surged even faster, more than doubling from 120 to 257 Giga Watts.

This is equivalent to installing more than two hundred and thirty thousand solar panels every day during these four years.

Simply put, we have accelerated the energy transition at a much faster pace than anyone predicted.

The direction we had set under the Green Deal did not change.

It only confirmed that we had taken the right strategic decision: decarbonising our energy sector is also the best way to ensure our energy security and drive economic growth and innovation.

Dear friends,

The lesson we learned is that clean energy transition needs a network of partnership. That's why the EU has revived its energy diplomacy, deepening energy relations with many partners around the world.

We are determined to engage with partners and support them in their economic, green, and digital transitions.

We also want to establish long-term relationships that are mutually beneficial, in particular in the area of energy, to accelerate the global green and just transition.

One such relationship is Argentina.

We already have a good foundation.

European business is the source of about 40% of Foreign Direct Investments in Argentina, and the EU is the second biggest importer of Argentine goods and third most important exporter to Argentina.

Now momentum is building to deepen these ties in the energy sector.

Last year, two new Memoranda of Understanding were signed between the EU and Argentina.

This includes one on energy where we agreed to work together to develop and promote renewable energy, energy efficiency and hydrogen.

I am here in Argentina to follow up on these commitments.

We don't come empty handed.

This memorandum is backed by a solid investment package.

Under the Global Gateway Investment Agenda, the EU will be investing more than EUR 45 billion in the whole region.

This will be key for mobilising further private capital and ensuring projects get off the ground also here in Argentina.

Renewable hydrogen will be one sector that will benefit from this.

For example, EU funding will support feasibility studies and analysis of projects that will be soon deployed in Argentina.

This is the first brick in building together a solid framework for hydrogen market in Argentina.

But more is to come.

We're looking into how we can replicate here a EUR 200 million funding platform currently being rolled out in Chile for developing projects for producing and using renewable hydrogen.

This is being led by the European Investment Bank and KfW, a German development bank.

We're also fostering closer ties between our two business communities with for example business to business events in Brussels with companies interested in deploying hydrogen in Argentina.

Dear friends,

Argentina and the EU already collaborate well at multilateral level.

You joined us in adopting the Global Targets on Renewables and Energy Efficiency that were launched at COP28.

You are also member of the Global Methane Pledge, aiming to reduce 30% of methane emission by 2030.

We'll also be aligning and joining forces on initiatives at upcoming meetings at the G20 and COP30.

But we are capable of so much more together.

We see so much potential for Argentina to position itself as a leader in green energy and climate change solutions.

And I want to be clear in underlining the EU's readiness and interest in working closely with you as you go down this path.

In the coming years, we're set to become a huge demand centre for renewable hydrogen.

As I explained in the first part of my remarks, we are all in on the energy transition.

We now have an almost complete legal framework for Europe's hydrogen economy in place and a clear direction of travel for industry and business.

And we have set ourselves the goal of producing 10 million tonnes of hydrogen and importing another 10 by 2030.

I am confident that we can seize these opportunities for jobs and growth and at the same time take EU-Argentina energy relations to greater heights.

Thank you for your attention.