report parliamentary committee draft, 14 September 2023
On gender aspects of the rising cost of living and the impact of the energy crisis
Document FEMM-PR-752947 · (2023/2115(INI))
Committee on Women’s Rights and Gender Equality · Rapporteur: Alice Kuhnke
Full text
Motion for a european parliament resolution 64 paragraphs
(2023/2115(INI))
The European Parliament,
–having regard to Articles 2, 3(1) and 3(3) of the Treaty on European Union,
–having regard to Articles 8, 9, 10, 119, 122, 127, 151, 153(2), 156, 157, 191 and 194 of the Treaty on the Functioning of the European Union,
–having regard to the Charter of Fundamental Rights of the European Union and, in particular, its provisions on social rights and equality between men and women,
–having regard to the 2030 UN Agenda for Sustainable Development, the principle of ‘leaving no one behind’, and, in particular, Sustainable Development Goal 1 on ending poverty, Goal 5 on achieving gender equality and improving living conditions for women, and Goal 8 on achieving sustainable economic growth,
–having regard to the Commission communication of 5 March 2020 entitled ‘A Union of Equality: Gender Equality Strategy 2020-2025’ (COM(2020)0152),
–having regard to the Versailles Declaration of the Heads of State or Government of 11 March 2022, and, in particular, the commitment to ‘improve our food security by reducing our dependencies on key imported agricultural products and inputs, in particular by increasing the EU production of plant-based proteins’,
–having regard to Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC,
–having regard to Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC,
–having regard to Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources,
–having regard to Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU,
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–having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility,
–having regard to Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023 to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms,
–having regard to its resolution of 19 May 2022 on the social and economic consequences for the EU of the Russian war in Ukraine – reinforcing the EU’s capacity to act,
–having regard to its resolution of 5 July 2022 on women’s poverty in Europe,
–having regard to the European Court of Auditor’s Special Report of 26 May 2021 entitled ‘Gender mainstreaming in the EU budget: time to turn words into action’,
–having regard to Commission Recommendation (EU) 2020/1563 of 14 October 2020 on energy poverty,
–having regard to the International Energy Agency’s end-use energy prices and taxes data,
–having regard to the International Monetary Fund’s report of October 2022 entitled ‘The Fog of War Clouds the European Outlook’,
–having regard to Eurostat’s 2022 study entitled ‘Living conditions in Europe’,
–having regard to Eurostat’s briefing paper of 10 February 2022 entitled ‘Energy prices on the rise in the euro area in 2021’,
–having regard to Eurofound’s report of 28 October 2022 entitled ‘The cost-of-living crisis and energy poverty in the EU: Social impact and policy responses – Background paper’,
–having regard to the European Institute for Gender Equality’s 2021 and 2022 Gender Equality Indexes,
–having regard to its Autumn 2022 Eurobarometer survey,
–having regard to the study entitled ‘Gender perspective on access to energy in the EU’, published by its Directorate-General for Internal Policies of the Union on 18 December 2017,
–having regard to the briefing entitled ‘Gender Aspects of Energy Poverty’, published by its Directorate-General for Internal Policies of the Union on 1 March 2023,
–having regard to the study entitled ‘The Gender Dimension and Impact of the Fit for 55 Package’, published by its Directorate-General for Internal Policies of the Union on 6 December 2022 ,
–having regard to the briefing entitled ‘Energy poverty in the EU’, published by its Directorate-General for Parliamentary Research Services on 18 September 2023,
–having regard to the opinion of 12 May 2022 by the Committee on Women’s Rights and Gender Equality on the proposal for a directive of the European Parliament and of the Council on energy efficiency,
–having regard to the report of 7 April 2021 by the Committee on Development on the impacts of climate change on vulnerable populations in developing countries and the opinion by the Committee on Women’s Rights and Gender Equality of 2 October 2020,
–having regard to its resolution of 10 February 2021 on reducing inequalities with a special focus on in-work poverty,
–having regard to Rule 54 of its Rules of Procedure,
–having regard to the report of the Committee on Women’s Rights and Gender Equality (A9-0000/2023),
A.whereas, since 2021, inflation has increased sharply, driven primarily by high energy and food costs, and exacerbated by the unjustified war of aggression against Ukraine; whereas wages are not projected to increase as fast as inflation, thus creating a cost of living crisis; whereas this crisis acutely threatens women’s livelihoods, health, well-being and access to housing, while limiting their purchasing power and ability to provide food;
B.whereas the Commission adopted a series of measures in March 2022 following the Versailles Declaration, aimed at supporting Ukraine’s agricultural production, strengthening the resilience of the EU and mitigating the spike in food prices for European consumers;
C.whereas women in all their diversity are disproportionately affected by the consequences of the cost of living crisis, as they tend to be among the poorest part of the population, are highly represented in precarious jobs, have lower incomes as a result of the pay and pension gaps, and are still expected to carry out the bulk of unpaid care work, leaving them with fewer resources to protect themselves against the negative impact of the crisis;
D.whereas climate change and climate-related disasters exacerbate the cost of living crisis and the risk of poverty; whereas the groups already living on the margins are being hit the hardest by the volatility of the fossil fuel energy system, while energy and food companies are making record profits;
E.whereas energy poverty represents a huge challenge for the EU, as between 50 and 125 million people are unable to afford proper indoor thermal comfort;
F.whereas women, particularly single parents and those experiencing intersectional discrimination on grounds of ethnicity, race, migration status, sexual orientation, disability or age, are more likely to fall into energy poverty; whereas this means that the ongoing cost of living crisis will exacerbate gendered energy poverty in the EU;
G.whereas there is little awareness or data available on the impact of energy poverty on women in the EU; whereas the EU Energy Poverty Observatory does not deliver gender-disaggregated data in its publicly accessible set of indicators; whereas only a few Member States have adopted definitions of energy poverty and energy poverty indicators, which usually do not take gender into account;
H.whereas the Commission has not delivered on its commitment set out in the Gender Equality Strategy to integrate a gender perspective into all major Commission initiatives, including the European Green Deal and related policies;
I.whereas the Commission is obliged to promote gender equality under the Treaties; whereas, however, the European Court of Auditors considers that a gender perspective has not been integrated into the EU budget;
J.whereas gender equality concerns are largely missing from the green transition and digital transformation pillars of the Recovery and Resilience Facility, which represents a missed opportunity to effectively integrate gender equality into climate and environmental objectives;
K.whereas a gender perspective is missing from the Member States’ and EU’s policies and measures aimed at countering and alleviating the effects of the cost of living crisis; whereas about two thirds of the measures introduced by Member States to mitigate rising inflation rates are not targeted at particular groups in vulnerable situations and only provide short-term solutions instead of responses that will contribute to a socially fair and green transition;
Feminisation of energy poverty and gender responses to the crisis
1.Calls on the Commission to deliver on the commitment made by President von der Leyen to promote gender equality in all policymaking; calls for a European Green Deal and just and socially fair transition that works for all by developing a gender-transformative intersectional strategy to address energy poverty, and by increasing public investment in social, affordable and energy-efficient housing;
2.Calls for the Member States and the EU to urgently guarantee affordable utilities and food for low-income households and, in particular, for those facing intersectional discrimination; stresses that no one should have to freeze in the height of winter or overheat in the scorching summer months and calls for the Member States and the EU to ban energy disconnections;
3.Calls on the Member States to increase public investment in policies that, directly or indirectly, aim to counteract the negative effects of the cost of living crisis on women in all their diversity, to guarantee access to high-quality public services for care, education, health, including sexual and reproductive health and rights, and housing, and to protect victims of gender-based violence;
4.Calls on the Commission to assess and propose, where appropriate, new legislative acts to counter the financialisation of housing markets and to stop speculators from making housing unaffordable;
5.Highlights that access to electricity plays a fundamental role in poverty reduction and in ensuring full and equal participation in society; calls for the EU and the Member States to recognise the right to energy;
6.Calls on the Commission’s Directorate-General for Energy to develop a gender action plan that ensures that all EU energy legislation, including the right to energy sharing as mentioned in Directive (EU) 2018/2001, integrates the gender dimension and develops specific measures and targeted funds to combat the feminisation of energy poverty;
7.Calls on the Commission and the Member States to ensure the inclusion of gender and intersectional dimensions in all schemes for energy efficiency and renewable electricity, so as to support the citizens most affected by energy poverty;
8.Calls on the Commission and the Member States to request gender-disaggregated data on energy poverty from Eurostat; calls, in this respect, on the EU Energy Poverty Observatory to use such data to develop and select gender-specific indicators that would allow evidence-based policy development in that area, in consultation with the European Institute for Gender Equality, the European Union Agency for Fundamental Rights and the European Environment Agency;
9.Calls on the Commission to require the Member States to conduct gender impact assessments in national energy and climate plans, including when reporting on energy poverty;
Towards a gender-inclusive green transition
10.Recalls that the green transition is necessary to avoid severe future crises and increased poverty; recalls, furthermore, that the green transition will only be socially fair if it includes a gender perspective and guarantees equal opportunities for women and those experiencing intersectional discrimination; calls, therefore, on the Commission to appoint an EU gender and climate coordinator with sufficient staff and funding, and to introduce gender impact assessments in all EU policies and legislation, in particular in European Green Deal initiatives;
11.Stresses that women have a strategic role to play in the green transition, as they are key actors in the development of sustainable and ecologically sound consumption and production patterns, as well as in business and policymaking;
12.Deplores the fact that women are significantly under-represented in key policymaking positions on climate change and the environment, and calls for the EU and the Member States to ensure equal and diverse representation in decision-making positions across the EU institutions, government bodies and public authorities at all governance levels;
13.Calls on the Commission to reduce the gender gap in the energy sector and to ensure that women have equal access to training courses on energy efficiency and to emerging job opportunities in the energy sector;
14.Calls on the Commission and the Council to commit to gender budgeting and to ensure that it is applied to the entire EU budget, and that the European Court of Auditor’s recommendations are fully implemented, including in the mid-term review of the current multiannual financial framework and the implementation of the Recovery and Resilience Facility;
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15.Instructs its President to forward this resolution to the Council and the Commission.
Explanatory statement 25 paragraphs
The cost of living and energy crisis – women are hardest hit
Europe is currently experiencing a cost of living and energy crisis to an extent that is almost unparalleled in recent history. Across the continent, people are struggling to make ends meet and having to choose between “heating or eating.”
At the start of 2022, after the COVID pandemic, the European Union was geared up ‘to get to work, to make Europe greener, more digital and more resilient’. However, on 24 February, Russia invaded Ukraine.
In addition to the tremendous human suffering caused by the war waged by Russia on Ukraine and its people, the war has massively impacted supply chains, causing energy and food prices to surge, and inflation to skyrocket. In 2022, the inflation rates triggered the European Central Bank to increase interest rates for the first time in 11 years.
Unfortunately, the inflation hike happened before the most vulnerable social groups could recovered from the COVID pandemic, and this further compounded the living conditions for many European citizens.
Millions of households are now in need of help due to this increase in the cost of living and energy price hikes. However, looking behind the numbers poverty has a female face.
Women across Europe are facing more socio-economic challenges and higher poverty levels than men. In general, women have jobs that are more precarious, their pay is lower, and they are more likely to do unpaid childcare work. When it comes to accessing education, healthcare, employment, and social services, some groups of women face intersecting forms of discrimination. These include women over 65, women with disabilities, and women from ethnic minorities.
Since COVID-19, the inequalities between men and women have increased and the current cost-of-living crisis disproportionately affects women due to their lower average income, poor and inefficient housing, and dependency on social benefits. In 2021, before the crisis, over 20 million more women than men lived below the poverty line index in the EU. At the current rate of progress, the EU is at least 60 years away from achieving gender equality.
Ursula von der Leyen promised to leave “no one behind” but forgot the Green Deal
We know that women are at a greater risk of falling into energy poverty – a lack of access to affordable energy resources. The problem is a recognised challenge at the EU level. According to the European Commission, “energy poverty is a widespread problem across Europe, as between 50 and 125 million people are unable to afford proper indoor thermal comfort.”
However, there is little data available on the impacts of energy poverty on men and women in the EU. Only few Member States have adopted definitions of energy poverty and energy poverty indicators, but they do not usually consider gender.
Already in 2016, the European Parliament adopted a resolution on access to energy calling for a gender dimension in all energy policies. Unfortunately, little progress has been made despite numerous calls by the European Parliament and the promise of Commission President Ursula von der Leyen that the European Green Deal would leave “no one behind”.
Despite the commitment of the current commission to mainstream gender into all its major initiatives, the links between gender equality and the European Green Deal policy areas, as well as in the Recovery and Resilience Facility, are inadequate.
In practice, what the European Commission has delivered in so far on the Green Deal, can be described as an EU-funded gender-blind green transition, threatening to magnify existing gender and intersecting inequalities.
The European Court of Auditors special report 10/2021: Gender Mainstreaming in the EU budget. Time to turn words into action also confirms the fact that the Commission is not respecting its treaty-based obligation to promote equality between women and men in all areas of policy making and implementation. The report concludes that indicators and gendered disaggregated data often are lacking in policy development and hindering analysis of gender mainstreaming. In consequence, the Green Deal initiatives and the Recovery and Resilience Facility fail to ensure gender equality.
In addition, EIGE’s Gender Equality Index 2023: Gender Equality and the European green deal, also emphasise the lack of high-quality data and states that the current indicators are not fit for purpose. Too often data is not gender-disaggregated and indicators not gender-responsive. In consequence, available EU statistics do not measure issues that are relevant from an intersectional gender perspective.
The lack of evidence is a key challenge for the Commission if they are serious about delivering on their commitment to “leave no one behind”. Having intersecting facts on the table is necessary for successfully mainstreaming the diverse needs and concerns of both women and men into the policies delivering the European Green Deal. This is imperative to ensure equal access to the historically unmatched funding and to the great opportunities that the green transition offers.
The Green Deal must prioritise social fairness to address gendered poverty
Europe is once again in emergency mode, facing a significant energy crisis due to our dependency on fossil fuels and a volatile energy market.
The social aspects of the European Green Deal and our energy policies are critical to meeting the EU climate targets and mitigating the socio-economic impacts of Russia’s war against Ukraine.
Currently the most vulnerable EU citizens are paying the price for the volatility of our fossil dependent energy system. Poverty has a female face and already in 2021, before the current crisis, over 20 million more women than men lived below the poverty line index in the EU.
Several strong statements have been made by the European Parliament relating to gender equality and the energy transition. In its resolution of 17 February 2022, the Parliament recognised that women still face structural and cultural barriers to participation in all aspects of delivering the energy and climate transition.
Structural problems require structural solutions. Therefore, intersecting data and a gender-responsive approach must be reflected in EU policy making to counter the rise of gendered poverty. The implementation of the European Green Deal provides an opportunity to deliver on the commitment to mainstream gender and an intersectional perspective in all the EU’s activities, including in the EU budgeting process.
The report presents several measures to combat the rise of gendered poverty and reiterates the European Parliament’s numerous calls on the Commission to deliver on its promise to ensure a green energy transition that works for all.
In conclusion, ensuring a socially fair green transition is an absolute prerequisite for the success of the Green Deal and for achieving gender equality in the European Union.