Global energy crisis could dim climate hopes

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A worldwide energy crisis is affecting homes and manufacturers who were already struggling to recover from the global pandemic.

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why it matters: This is a perfect storm of crises. There is a shortage of supplies, especially from China; inflation; slow growth; labor shortage; Russia’s continued geopolitical muscle-resilience and, of course, the fear that the world would become a crisp.

running news: A combination of weather-related issues (many of which are related to climate change), unpredictable demand and planned outages have sent natural gas and coal prices through the roof.

  • of china energy Shortage Already hi-tech manufacturing centers have had to close their doors.
  • India is in even worse shapeThere is little potential to bring new power sources online.
  • in uk, Rise in natural gas prices saw many companies go bust, while the EU has been reminded how uneasy Dependent It is on Vladimir Putin’s Russia for its energy needs.
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big picture: Inflation is bad, but energy-price inflation is terrible. It hurts the poorest the most and evokes memories of a 1970s-style recession, where rising prices are combined with anemic growth.

  • global energy transition is for renewable energy well underway, but did not come soon.
  • pressure on the energy system Not going to bow down in the coming decades.” writing The International Energy Agency released its latest World Energy Outlook on Wednesday.

By numbers: Worldwide the demand for coal far exceeds the supply. The price of coal hit $274 a tonne on October 5 on the Nymex exchange in New York. A year ago it was $57.

  • Between the beginning of May and the beginning of October European natural gas prices increased by about 500% and then decreased slightly.
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What will happen next: The United Nations Climate Summit in Glasgow begins on 31 October.

  • this crisis This is likely to make China and India more reluctant to phase out coal-fired power plants in the near future. The current crisis shows that they can get as much energy as possible, whatever the source.

Bottom-line: The world is dependent on fossil fuels for much-needed development. The problems with this aren’t just intergenerational. They are here, now.

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