The great energy shock is a calamity. But it could also be the moment when better government policy triggers the investment needed to resolve the conflict between having a safer supply of energy and a safer climate
Save time by listening to our audio articles as you multitaskIn Europe what was long imagined as a nightmare of freezing midwinter nights has instead erupted as a midsummer fever dream. A heatwave forced Spanish gas demand to near-record highs, even as, on June 14th, Russia began to lower the flow of gas along the Nord Stream 1 pipeline to western Europe, sending prices soaring by 50% and raising fears that rationing may be introduced later this year.
This improvised chaos is understandable but potentially disastrous, because it could stall the clean-energy transition. Public handouts and tax-breaks for fossil fuels will be hard to withdraw. Dirty new power plants and oil- and gasfields with 30- to 40-year lifespans would give their owners more reason to resist fossil-fuel phase-outs. That is why, even as they firefight, governments must focus on tackling the fundamental problems confronting the energy industry.
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