Europe’s current energy crisis is one of the most significant challenges faced by countries in the region. The spike in energy prices was mainly caused by geopolitical tensions, especially Russia’s invasion of Ukraine, which resulted in gas supply disruptions. The impact of this crisis goes far beyond Europe, affecting global energy markets and fueling inflation in many countries. Soaring energy costs affect households, businesses, and governments, creating economic uncertainty. One of the immediate effects of the crisis is an increase in energy prices, which has doubled electricity and heating bills. Many industries have been forced to reduce production or even close facilities because operational costs are unaffordable. This not only impacts European economies, but also countries that depend on exports to Europe, such as countries in North Africa and the Middle East. In a global context, the European energy crisis affected global energy markets, triggering a surge in oil and natural gas prices internationally. Energy producing countries, such as the US and OPEC member countries, see opportunities to increase production. However, this step is not enough to stabilize prices which continue to soar. On the other hand, countries with a high dependence on fossil energy face additional pressure to switch to renewable energy sources. Short-term solutions include diversification of energy sources and strategic storage. Europe is now trying to increase imports of LNG (liquefied natural gas) from countries such as the US and Qatar. Additionally, exploration of domestic energy sources in European countries is increasing, although environmental challenges are often hampered by strict regulations. On the long term side, the energy transition is the main focus. Investment in renewable energy, such as wind and solar, is accelerating. European countries are committed to achieving carbon neutrality by 2050, and for this, the development of efficient energy storage technologies and the implementation of green policies are essential. Adoption of energy efficiency technology is one of the pillars in mitigating this crisis. Companies are now focusing more on innovations that can reduce energy consumption and costs. The Internet of Things (IoT) and artificial intelligence (AI) are used to manage energy use more efficiently. International cooperation is also an important aspect in dealing with this crisis. Europe is seeking closer ties with energy-producing countries to ensure stable supplies. The global green deal is seen as a crucial step to face the challenge of climate change while addressing the energy crisis. Financial innovations, such as green finance, enable investment in sustainability projects. With soaring uncertainty, countries around the world are looking for ways to adapt their economies to a new, cleaner and more sustainable energy paradigm. Collaboration between the public and private sectors on renewable energy projects can accelerate the transition. Public education regarding energy saving also needs to be improved. Awareness of the importance of minimizing energy consumption is not only beneficial for the environment, but also helps reduce energy bills. Changes in consumer behavior are part of a more comprehensive solution to facing the energy crisis. Facing this challenge, it is important for the private sector and government to collaborate in formulating policies that support innovation and sustainability. While Europe’s energy crisis presents significant challenges, it also brings to life opportunities for a transition to a better energy future.