Tony Blair Institute Report Calls for Balanced European Energy Strategy

Sir Tony Blair and Matteo Renzi wrote a foreword to a new report from the Tony Blair Institute, urging European leaders including Sir Keir Starmer to overhaul energy strategies to prioritize supply and affordability. The former prime ministers stressed that geopolitical shocks like the conflict in the Middle East have left Europe exposed.

They argued that while decarbonisation is essential, it cannot be pursued in isolation, and future global leaders in energy will be those providing abundant, secure and affordable energy at scale.

The Bank of England predicted the average household annual energy bill will rise from £1,641 to close to £1,900 in July and stay at that level for the rest of the year. The National Institute of Economic and Social Research warned that the energy crisis triggered by a prolonged conflict in the Middle East could plunge the UK into recession during the second half of this year.

European energy costs are up to three times higher than competitors, according to the Tony Blair Institute report.

A row erupted last spring over Sir Tony Blair arguing that limiting fossil fuels in the short term was doomed to fail, as reported by The Independent. The UK and Denmark decided to phase out fossil fuel production, a move the report cites as having made the region more exposed to international markets in increasingly unstable times.

Europe’s long-standing reliance on Russian fossil fuels has now been slowly replaced by dependence on Middle Eastern and American supplies, according to Tone Langengen, the report's author.

The Tony Blair Institute report recommends that the UK and EU move towards a common market relationship in the long term. It argues that Britain should be allowed to opt in to a continental system planner designed to coordinate Europe’s electricity sector. In their foreword, Sir Tony and Mr Renzi said: “Europe has led the world in climate ambition and made real progress in reducing emissions.

That achievement matters. But the global centre of gravity has shifted. ” They added: “For years, the energy transition has been understood primarily as a climate challenge, one defined by targets, timelines and emissions reduction.

But that framing is no longer sufficient. ” The pair emphasized that this is not an argument for weakening climate ambition but for embedding it within a more effective strategy that recognizes clean energy succeeds when it delivers abundant and affordable power. Data centre capacity is set to grow by 20 per cent per year to 2030, according to Tone Langengen.

AI is predicted to consume nearly three per cent of global power by 2030, she noted. These trends underscore the need for a shift from a climate-first approach, the report states, to avoid Europe falling behind in energy systems and economic order. Tone Langengen said Europe has extraordinary energy assets, including decades of nuclear expertise, the world’s strongest offshore wind resources and a highly interconnected electricity system.

But she warned that the continent must deliver abundant, affordable and secure power at scale, or risk falling behind in prosperity and geopolitical standing. The report points to mistakes in past energy policies, such as deprioritizing fossil fuels while dependence remained high.

A Department for Energy Security and Net Zero spokesperson stated: “Net zero is the economic opportunity of the 21st century, with clean power being the route to energy sovereignty, lower bills for good and thousands of good jobs in our communities.

” Jess Ralston of the Energy and Climate Intelligence Unit said moving away from fossil fuels helps avoid volatile oil prices and supports both climate and energy security.