Fossil fuels, which include coal, oil and natural gas, have played a central role in the global energy supply since the beginning of the industrial revolution. They are rich in energy and relatively easy to extract and transport. In Europe, including Austria, the energy supply has long been based mainly on these conventional energy sources. However, their role in the energy market is changing with the increasing awareness of climate change and the drive towards sustainable energy sources.

Coal was historically the most important fuel for power generation and remains so in some European countries. However, it is the most emission-intensive fossil fuel and contributes significantly to global greenhouse gas emissions. Austria is one of the countries that decided early on to phase out the use of coal. Since 2020, there have been no more coal-fired power plants producing electricity in Austria, which represents a significant step towards a low-carbon energy supply.

Crude oil is also a central component of the energy market, particularly in the transport sector. In Austria, a large proportion of crude oil is imported, as the country itself has limited crude oil reserves. However, the share of oil in the energy mix has been declining in recent years, as electromobility and other alternative drive systems are gaining in importance. Replacing petroleum products with lower-emission alternatives remains one of the major challenges for the future.

Natural gas, on the other hand, is often referred to as a "bridging technology" in Europe, as it produces lower CO₂ emissions than coal and oil. It is used in particular to generate electricity and for heating purposes. Austria obtains a large proportion of its natural gas from abroad, particularly from Russia, which has led to discussions about dependence on fossil fuels from third countries in recent years. The Ukraine conflict has further intensified the debate on energy security and strengthened the political will to reduce dependence on fossil fuels.

The decarbonisation of the energy market is a key objective in the European Union and in Austria. While fossil fuels continue to make up a significant proportion of the global energy mix, there is growing pressure to expand renewable energies such as wind, solar and hydropower in order to achieve climate targets. Austria, with its high proportion of hydropower, is already well positioned here, but the use of photovoltaics and wind power should also be further expanded.

Another problem with fossil fuels is the finite nature of their resources. Coal, oil and natural gas are not infinitely available and their extraction is becoming increasingly complex and expensive. At the same time, there is increasing social pressure to reduce the environmental impact of the extraction and utilisation of fossil fuels. This includes not only greenhouse gas emissions, but also other negative environmental impacts such as air pollution and ecosystem damage.

In the European Union, there are a number of directives and laws aimed at reducing the consumption of fossil fuels and accelerating the transition to renewable energies. These include the European Emissions Trading System (EU ETS), which forces companies to purchase certificates for their CO₂ emissions. This makes the use of fossil fuels more expensive and incentivises a switch to cleaner technologies.

In Austria, the phase-out of fossil fuels is well advanced, particularly in the areas of electricity and heat generation. Nevertheless, the transport sector remains a challenge, as fossil fuels still dominate here. However, the Austrian federal government has set itself ambitious targets for phasing out the use of fossil fuels as far as possible by 2040 in order to achieve the goal of climate neutrality.

To summarise, fossil fuels will remain an important part of the European energy supply, but their share will decrease continuously in the coming years due to the expansion of renewable energies. Austria has already made significant progress in phasing out fossil fuels, but still faces major challenges, particularly in the transport and heating sectors.