The Energy Price Crises: A Reality Check for Europe’s Green Deal Briefings de l'Ifri, November 10, 2021
On its path to carbon neutrality, the European Union (EU) will be exposed to growing energy price volatility and vulnerable to Russian and Chinese pressure on supply and demand.
• For the sake of climate and energy security, the EU must use energy more efficiently and enable an equally attractive framework for investment in renewable energy (REN) and nuclear power.
• The strong dependency on gas imports will persist for at least a decade and the EU must focus on price stability to avoid derailing its climate policy, while actively promoting the deployment of alternative flexibility solutions.
• Introducing carbon price management tools would reduce consumer pain and improve the investment framework for low-carbon products.
• Europe’s industry is at risk from too high energy prices and too slow decarbonization, at a time when carbon havens could become the new tax havens.
• The EU should better prepare for future crises and consider the global implications of the energy price crunch.