The Moscow Times reported that the European Union will seek to halve its overall fossil fuel imports by 2050 under a new strategy presented in Moscow.

The Road Map to a Carbon Neutral Economy by 2050 sets out a strategy for the EU to reduce its greenhouse gas emissions to a mere 20% of 1990 levels over the next 4 decades.

The strategy envisages annual investments of EUR 270 billion about 1.5% of Europe's gross domestic product in improving energy efficiency in buildings, transportation and the power industry including production and transmission grids.

The policy calls for saving EUR 175 billion to EUR 320 billion in fuel costs and slashing energy consumption to 70% of 2005 levels. The halving of oil and gas imports would save some EUR 400 billion about 3% of today's GDP on its bill for foreign oil and gas.

Russian analysts greeted the plans with skepticism but said that demand from emerging Asian markets should be able to pick up the slack if the goals were achieved.

Mr Alexander Yeremin an oil and gas analyst at Finam said that "The EU plans to replace fossil fuel with electricity for transportation and heating. In a worst case scenario, Russia could switch from European to Asian oil markets but fully retain the European market for natural gas thanks to the role it plays in electricity generation.”

According to the EU Energy Commission, Europe consumes the vast majority of Russia's gas exports and more than half of its oil. Russia supplied 29.7% of Europe's crude oil imports in 2010. It supplied about 30% of Europe's gas in 2008.

(Sourced from www.themoscowtimes.com)