Dan Jørgensen: The new European boss of energy and affordable housing?

by | Nov 20, 2024

Leading figure in Danish climate progressivism, Dan Jørgensen has built a career on strong ecological and social values. In the “Brussels bubble,” he’s seen as a “cool, social-minded eco,” someone with a refreshing pragmatism that resonates, even among center-right MEPs. Peter Liese, a key EPP MEP on climate, has praised Jørgensen as “very, very pragmatic and communicative,” a reputation that could help him advance his projects in the European Parliament.

What the energy and housing commission achieved from 2019 to 2024

Over the last term, European energy policy was structured around key priorities: energy transition, supply security, and reducing energy poverty, all critical as the Ukraine conflict heightened energy cost pressures. The 2019 Green Deal introduced an ambitious vision for Europe to become the first climate-neutral continent by 2050. This framework led to the “Fit for 55” legislative package, aiming to cut greenhouse gas emissions by 55% by 2030. This target was reinforced by the European Climate Law in 2021. Following geopolitical tensions, the REPowerEU plan was added to accelerate the shift to renewable energy sources and ensure Europe’s independence from Russian fossil fuel imports.

Another highlight was electricity market reform, which now includes measures to protect consumers and stabilize prices by enabling long-term renewable energy contracts and introducing a pricing model that favors low-carbon sources. Specific regulations for renewable gas and hydrogen were also added, supported by a cross-border infrastructure plan. These policies, along with creating an EU-wide hydrogen market, aim to establish a clean and independent energy sector.

On housing, while the EU has limited direct jurisdiction, initiatives were launched to help member states improve building energy efficiency, encourage renovations, and reduce energy poverty. The Energy Performance of Buildings Directive, for example, now requires all new residential buildings to be zero-emission by 2030.

Plans for the next commission (2024-2029)

Dan Jørgensen faces a dual mission. On energy, he must strengthen the Union’s energy independence while achieving climate goals. His program prioritizes decarbonizing the economy, with a focus on renewable energy and new technologies like “Power-to-X.” Administrative simplifications to accelerate renewable projects are also planned.

Jørgensen is additionally tasked with developing the first “European Affordable Housing Plan.” This project aims to provide technical and financial support to states and cities to increase affordable housing supplies, including through a partnership with the European Investment Bank. It also aims to address housing challenges in major cities, where rising rents and property prices create social tensions. Special efforts will go toward training in the construction sector to support growth in construction and renovation projects.

Finally, while he has long opposed nuclear energy, Jørgensen has recently adopted a more conciliatory position, recognizing that small modular reactors could assist some states in their energy transition. However, his openness to nuclear energy is tempered by a focus on avoiding further dependence on foreign supply chains, particularly those linked to Russia.

Challenges for Jørgensen

Jørgensen faces complex challenges with significant social and economic impacts. At his European Parliament hearing, he stated that his top priority would be to make energy more affordable, acknowledging that Europe’s high prices are affecting business competitiveness compared to the U.S. and China. He emphasized that the transition to clean energy should not burden low-income households and pledged to address energy poverty. In his address to MEPs, he also argued that access to affordable, clean energy should be simplified, not by adding more rules but by reducing administrative obstacles.

On housing, pressure is high. The European Affordable Housing Plan that Jørgensen supports will need to show quick results in addressing rising rents and urban housing crises. He also faced questions on potential EU regulations for short-term rentals, which affect housing availability in major cities. Progressive parties, especially the S&D group, welcomed his social vision, seeing it as a strong commitment to housing as a human right, while Jørgensen himself declared that housing “is not a speculative asset but a human right.”

One of his main challenges will be balancing his environmental values with political compromises. Close to Greens and progressives, he will be closely watched on sensitive issues like nuclear energy, housing projects, and support for renewables. Some critics point to a perceived lack of attention to detail, as shown by his early emissions reduction targets in Denmark, whose feasibility was initially questioned. However, Jørgensen remains well-regarded for his pragmatism and his ability to communicate effectively with all parties, as Stéphane Séjourné.

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