The impact of high energy prices on the agricultural sector and rural areas

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Practical information

  1. Composition of the study group
  2. Administrators / Assistant in charge : Martine DELANOY/ Nicolas STENGER / Anna KHATCHATRIAN
  3. Contact

Background

Russia's unjustified military aggression against Ukraine has triggered an unprecedented energy crisis for the EU. It has driven up energy prices and caused difficulties for people and businesses all over the EU. The hikes in energy prices and the risks of energy supply disruptions have been one of the key concerns for the EU over the past year and a wide range of measures have been taken at the EU level and by Member States. At the same time, the EU is rolling out an ambitious transition to a carbon-neutral economy.

The agricultural sector, which is a very important part of our rural areas, consumes large amounts of energy, either directly or indirectly through the use of energy-intensive inputs, especially fertilizer, and is as such especially affected by the high energy prices. This opinion aims to examine the impact of the rise in energy prices on the agricultural sector and on rural areas in greater depth, and provide recommendations. The opinion seeks to identify the key characteristics of rural areas and determine who is most affected by this crisis, what may be done to rectify the issue, and what opportunities exist, for example, with regard to the green transition. The opinion will also take into account the goals of the long-term vision for the EU's rural areas for 2040.