From threat to opportunity: Redefining energy security in Central and Eastern Europe

This article was co-authored with Dr. Paweł Czyżak, Regional Lead – CEE, Ember

2025 GLOBSEC Forum redefines energy security

On June 12-14, political and business leaders from all over the world met in Prague at the 20th anniversary GLOBSEC Forum  – one of the biggest security and geopolitics events in Europe.

The Forum took place in a particularly volatile moment, with Israel’s attack on Iran driving the biggest oil price increase since 2022, political turbulence across the Atlantic raising questions about Europe’s reliance on U.S. liquified natural gas (LNG) supplies, and Russia’s continued attacks on Ukraine’s energy infrastructure exposing the direct link between military and energy objectives.   

In light of these developments, Ukrainian President Volodymyr Zelenskyy called for more economic pressure on Russia and the complete stop of Russian fossil fuel purchases by European countries. Czech President Petr Pavel highlighted the need to strengthen Europe’s defenses and continue supporting Ukraine, while already planning Ukraine’s reconstruction. While security took center stage, discussions about AI, industrial policy and Europe’s competitiveness remained high on the agenda as well. 

Ember and Clean Air Task Force hosted a high-level roundtable on the sidelines of the GLOBSEC Forum, bringing together stakeholders from: the European Parliament, European Bank of Reconstruction and Development, ČEZ, and other major utility groups, governments, tech companies, political groups, business associations, and think-tanks. The discussion highlighted the following themes:

1. Fossil fuel imports remain a threat to energy security

Already in the mid 2000s, Russia demonstrated its willingness to leverage fossil fuel exports strategically, culminating in the 2021-2022 energy crisis that is still impacting Europe today. Diversification to other suppliers has limitations as well: long-term contracts for gas or oil no longer guarantee deliveries, with price volatility inducing frequent renegotiations. Even sourcing liquefied natural gas from trusted partners like the U.S. has already backfired, diminishing Europe’s negotiating power in discussions around trade policy.

In light of the above, clean firm power and electrification present an opportunity to stabilise energy prices and reduce geopolitical vulnerabilities. Yet, decarbonisation efforts are still being undermined by fossil fuel subsidies, such as Feed-in Tariffs (FiTs) currently supporting gas Combined Heat and Power (CHP) systems in Slovakia. These subsidies should be redirected to clean energy projects that require them to reach economies of scale, such as geothermal power and district heating. Loopholes for fossil fuel imports from Russia need to be eliminated as well, including the imports of gas through the TurkStream pipeline or via LNG supply chains.

2. Europe needs a new energy security strategy

The energy and digital transitions introduce new vulnerabilities, including cybersecurity threats, hybrid warfare tactics, misinformation campaigns and challenges related to critical raw material supply chains. Tackling them requires a new approach to security: one that connects regulators, industries, and military entities through joint risk assessment frameworks. 

Russia’s attacks on energy infrastructure in Ukraine highlighted the need to urgently strengthen the security of electricity grids. As with the EU Toolbox for 5G security, a grid security framework needs to be established which encompasses hardware and software solutions. 

Critical raw material supply requires action as well. In 2025, the EU selected 47 priority projects that can strengthen raw material supplies. Yet the key tactic, recycling, is still underutilized: on average, only 12% of raw materials used in the EU came from recycling in 2023. The upcoming Circular Economy Act, announced under the Clean Industrial Deal, aims to bring this number up to 24% by 2030. Additional raw material supply can be accessed by proactive trade policies and international partnerships, though these come with many of the risks associated with fossil fuel imports.

3. Market integration and collaboration are the foundation of Europe’s security

Protecting the unity and integrity of the EU single energy market is essential to avoid detrimental nationalistic approaches that fragment market effectiveness. Integration must expand into all areas, including capacity markets, system services markets, Contracts for Difference (CfDs), and auction schemes, or even critical raw material markets that would provide price benchmarks alternative to Chinese products. These markets require coherent pan-European frameworks and harmonized permitting processes across Member States. First-of-kind projects such as small modular reactors (SMRs) illustrate the need for standardized designs and coordinated business models at an EU-wide level. 

Increased investment in interconnectors is key for resilience, as proven by the Synchronization of Baltic States with the EU electricity system or the Romania-Moldova power connection. These have already ensured the steady supply of electricity despite disruptions caused by Russia. Further development of connectivity in Central and Eastern Europe can unlock economic benefits as well, enabling the flow of cheap wind energy from coastal areas to demand centres in Central Europe. Strengthening CEE’s voice in Brussels and increasing the European Commission’s involvement in facilitating cross-border projects are both essential to make these investments a reality. 

4. Europe needs to amplify investments to maintain global competitiveness

The private sector is essential in driving the energy transition, and it’s therefore important to maintain an attractive investment environment in Europe. However, unlike the proactive, incentive-based approach of the U.S. Inflation Reduction Act (IRA), the EU currently emphasizes restrictive measures that can potentially hinder innovation. The EU Taxonomy and its national implementations pose challenges for utilities in the CEE region, pushing the latter to explore financing from non-EU sources like China. 

An incentive-based approach that supports “made in EU” products should be considered instead, driving research, development and European jobs. Institutions such as the European Bank of Reconstruction and Development can have a key role in incubating new projects e.g., piloting CfD and offshore wind frameworks in Romania, Croatia, and the Western Balkans.

The GLOBSEC Forum made clear that energy policy is now inseparable from broader questions of security, sovereignty, and competitiveness. With the right strategy, Europe can lead the clean energy transition—not just as a climate imperative, but as a cornerstone of its long-term security and economic strength.