An energy crisis sounds like hitting the world hard. The global energy crunch could stoke inflation and catapult food prices to new highs. It’s threatening supply chains and could probably stir geopolitical tensions as governments vie to secure their needs of energy at any cost before winter grinds.
However, there seems to be a bad timing aspect of this crisis. For it surfaced just as the global economy is seeking to recover from Covid-19 pandemic and also at a time when world leaders are preparing to gather for a landmark conference on climate change.
Taking place at the backdrop of a series of climate-change-related disasters, COP 26 which is scheduled to convene in Glasgow next month, was meant for radical decisions that can save humanity by limiting global warming to 1.5 degrees Celsius-ceiling compared to pre-industrial levels.
However, the current energy crisis accompanied with higher rates of inflation may diminish such hopes and constrain the politicians’ ability to make decisions that may put more burdens on their citizens.
The world today is facing a very unpleasant situation involving natural gas production problems, geopolitical tensions, and unfavourable weather for renewable energy production which are all combined with an unexpectedly strong rise in demand as much of the world is recovering from the pandemic.
The situation is leaving many governments scrambling to get subsidies in place to avoid political backlashes. Haunted by the likelihood of a possibly chilling winter with skyrocketing heating bills, several countries may find retreating from the use of coal and other fossil fuels less palatable – at least for now.
The crisis has also highlighted the volatility that can accompany renewable energies. Some officials even go as far as to blame renewable energies and green policies for the recent surge in energy prices.
Clean energy skeptics have also delved in, seizing of the chance to raise questions about whether the world is ready for the green energy revolution when it’s already having trouble powering itself right now.
More serious still, even the most enthusiasts of green energy-supporting politicians will find it difficult to convince voters of the necessity to curb what may seem to be a long-term danger while opening the door for an imminent one.
Adding insult to injury is this anxiety about what may happen this winter under the new norms imposed by the climate change effects and the uncertainty over whether the energy price spikes are temporary, or reflective of a new shift in global energy production.
And, there are experts who warn that a wrong response to the current energy crisis would slow down the transition to renewable energy, but what might be the right response in this case?
How can we keep momentum and perhaps even look for ways to bolster the momentum for energy transition under such circumstances? One possibly plausible answer is that promoting progress on climate change simultaneously with finding ways to assure people about their household budgets seems to be the logical alternative for the time being.
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