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81. The EU’s Plan to Scale up Renewables by 2030: Implications for the Power System

Author:
Susanne Nies
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
The climate and geopolitical crises call for speeding up the implementation of the European Green Deal around two main pillars: reducing energy consumption and investing in low-carbon alternatives. The swift and massive deployment of renewable energies (REN) is a major industrial challenge for the European electricity system. • Scaling up renewable energy (REN) is paramount for climate protection and energy security, but it is also a major industrial challenge for the European Union (EU). The REPowerEU plan requires multiplying the installed capacity for solar photovoltaic (PV) power by a factor of 3 and raising wind capacity by a factor of 2.5 in less than 8 years from now. • To achieve such ambitious targets, permit-granting and administrative processes need to be streamlined, while greater consistency between environmental and climate legislation is required for both REN and related infrastructure. • The precondition for massive REN deployment is an efficient and flexible energy system. The latter needs to be enforced throughout the Fit for 55 Package, and through European and national energy “system” development plans. • The EU’s REN ambitions – those related to offshore wind in particular – are disruptive in terms of technology needs, investments, as well as governance. Interim steps as well as regional and national strategies must be developed accordingly.
Topic:
Climate Change, European Union, Renewable Energy, and Energy
Political Geography:
Europe

82. Environment in Times of War: Climate and Energy Challenges in the Post-Soviet Region

Author:
Aldo Ferrari and Eleonora Tafuro Ambrosetti
Publication Date:
06-2022
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
The impact of Russia’s war against Ukraine has been devastating both politically and environmentally. On top of the environmental damage directly caused by military operations, the invasion has put an abrupt end to the EU-Russia “green cooperation”, which had previously raised many hopes. At the same time, it has also shifted international attention away from climate and environmental concerns, which are particularly acute in the post-Soviet region. This Report analyses some of the main climate change and environmental issues in the post-Soviet space, providing an initial assessment of the invasion’s impact. The bulk of the latest scholarly and policy production on these matters focuses on Russia — given the country’s geopolitical and energy relevance. However, this analysis finds that environmental disasters such as the desertification of the Aral Sea transcend state borders and require a broader approach both from an analytic and policy standpoint.
Topic:
Climate Change, Environment, War, European Union, Post-Soviet Space, and Energy
Political Geography:
Russia, Europe, and Ukraine

83. Decarbonisation of the energy system

Author:
Georg Zachmann, Alexander Roth, Ben McWilliams, Franziska Holz, Robin Sogalla, Frank Meissner, and Claudia Kemfert
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Three quarters of the European Union’s greenhouse gas emissions stem from burning coal, oil and natural gas to produce energy services, including heating for buildings, transportation and operation of machinery. The transition to climate neutrality means these services must be provided without associated emissions. It is not possible today to determine tomorrow’s optimal clean energy system, largely because the cost, limitations and capability developments of competing technologies cannot be predicted. Energy systems with widely diverging shares of ‘green fuels’, in the form of electricity, hydrogen and synthetic hydrocarbons, remain conceivable. We find the overall cost of these systems to be of the same order of magnitude, but they involve larger investments at different stages of value chains. A large share of synthetic hydrocarbons would require more investment outside the EU, but less in domestic infrastructure and demand-side appliances, while electrification requires large investment in domestic infrastructure and appliances. Current projections show an overall cost advantage for direct electrification, but projections will evolve and critical players may push hard for alternative fuels. Policy will thus play a major role in shaping this balance. Political decisions should, first, push out carbon-emitting technology, primarily through carbon pricing. The more credible and predictable this strategy is over the coming decades, the smoother will be both divestment from brown technologies and investment in green technologies. Second, policy needs to help ensure that enough climate-neutral alternatives are available in time. Clear public support should be given to three system decisions about which we are sufficiently confident: the massive roll-out of renewable electricity generation; the electrification of significant shares of final energy consumption; and rapid phase-out of coal from electricity generation. For energy services where no dominant system has yet emerged, policy should forcefully explore different solutions by supporting technological and regulatory experimentation. Given the size and urgency of the transition, the current knowledge infrastructure in Europe is insufficient. Data on the current and projected state of the energy system remains inconsistent, either published in different places or not at all. This impedes the societal discussion. The transition to climate neutrality in Europe and elsewhere will be unnecessarily expensive without a knowledge infrastructure that allows society to learn which technologies, systems, and polices work best under which circumstances.
Topic:
Climate Change, European Union, Carbon Emissions, Decarbonization, and Energy
Political Geography:
Europe

84. How to make the EU Energy Platform an effective emergency tool

Author:
Walter Boltz, Klaus-Dieter Borchardt, and Thierry Deschuyteneer
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Uncertainty about the supply of Russian natural gas is causing extremely high and volatile European gas and electricity prices. European Union countries may struggle to import sufficient volumes of natural gas at reasonable prices. During the summer, the imperatives are to fill storage sites sufficiently in a coordinated manner and to organise sufficient import volumes to replace a substantial share of gas that might no longer come from Russia. Coordination is essential to ensure that disruptions during difficult winter months do not lead to a break-up of the EU internal gas market with potentially serious political repercussions. One part of the EU response is establishment of an EU Energy Platform for the purchase of gas, LNG and hydrogen. This aims to pool demand to leverage the bloc’s economic clout, international outreach to reliable partners and efficient use of existing infrastructure. EU leaders have backed the plan but it has not yet been translated into a feasible scheme. The platform should be developed into an effective emergency tool to safeguard gas supply in case Russian flows stop. We detail two complementary proposals to achieve this. First, there should be EU-wide auctioning of remuneration for filling storage sites in specific regions. Companies would remain responsible for all stages of the value chain, benefitting from remuneration and in return offering the market operator some control over how this gas is released during winter months. Second, EU demand for additional LNG quantities, and the sourcing of this on international markets, should be coordinated through a platform, creating a transparent market for these volumes. These mechanisms would resolve the prevention paradox and prevent free-riding. If EU countries buy gas jointly, they will find it much easier to let markets allocate scarce volumes across borders in case of a complete stop to Russian supplies. . This would reduce the risk of energy market fragmentation, as well as the subsequent energy security, economic and political impacts of a shock that would hit member states very differently.
Topic:
Oil, European Union, Gas, and Energy
Political Geography:
Russia, Europe, and Ukraine

85. Legal options for a green golden rule in the European Union’s fiscal framework

Author:
Zsolt Darvas
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Achieving the European Union’s climate goals and decoupling from Russian energy will require a massive increase in green public spending, which will be difficult when EU fiscal rules requiring fiscal consolidation are reinstated. The two major proposals to address the conflicting goals of fiscal consolidation and increased green public investment needs are a possible new European climate investment fund and a green golden rule. The latter would exclude any increase in net green public investment from the fiscal indicators used to measure compliance with fiscal rules, for countries with sound public finances. An EU climate fund and a well-designed green golden rule would be equivalent in terms of project selection, implementation and control procedures. If the climate fund does not involve redistribution across member states, then the treatment of related spending and consequent borrowing in national fiscal indicators and in the EU’s fiscal framework would be the same. New regulations would be needed to set up both the climate fund and the green golden rule. Special legislation would be needed to exempt the subsequent climate expenditures from EU fiscal rules in both cases. A climate fund financed by EU borrowing with redistributive effects across countries would likely result in the exclusion of the fund’s activities from national fiscal indicators and EU fiscal rules without any legislative changes. There are question marks about the desirability and political feasibility of redistribution across the EU for climate purposes. An EU climate fund, irrespective of whether or not it involves redistribution, would mainly benefit southern and eastern EU countries. An instrument is needed to foster green public investment in western and northern EU countries as well. The green golden rule would be such an instrument. While there are some pragmatic options to mimic a green golden rule in the current EU fiscal framework, such as amending the so-called ‘investment clause’ and adjusting the medium-term objective for the structural balance, ultimately, elements of the 2011 Six-Pack legislation and the 2012 Treaty on Stability, Coordination and Governance should be revised to include a green golden rules.
Topic:
Climate Change, Law, European Union, Fiscal Policy, and Energy
Political Geography:
Europe

86. Cutting Putin’s Energy Rent: ‘Smart Sanctioning’ Russian Oil and Gas

Author:
Ricardo Hausmann, Agata Łoskot-Strachota, Axel Ockenfels, Ulrich Schetter, Simone Tagliapietra, Guntram Wolff, and Georg Zachmann
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Following the Russian aggression against Ukraine, major sanctions have been imposed by Western countries, most notably with the aim of limiting Russia’s access to hard international currency. However, Russia remains the world’s first exporter of oil and gas, and at current energy prices this provides large hard currency revenues. As the war continues, European governments are under increased pressure to scale-up their energy sanctions, following measures taken by the United States, the United Kingdom, Canada and Australia. This piece argues that given the inelasticity of Russia’s oil and gas supply, for Europe the most efficient way to sanction Russian energy would not be an embargo, but the introduction of an import tariff that can be used flexibly to control the degree of economic pressure on Russia.
Topic:
Economics, Oil, Sanctions, Exports, Currency, Energy, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, and North America

87. Energy in the Eastern Mediterranean

Author:
Karen E. Young, Emily Stromquist, and Colby Connelly
Publication Date:
05-2022
Content Type:
Video
Institution:
Middle East Institute (MEI)
Abstract:
Karen Young, director of MEI's Program on Economics and Energy, is joined by Emily Stromquist and Colby Connelly for a discussion on gas and energy developments in the Eastern Mediterranean.
Topic:
Development, Gas, Investment, and Energy
Political Geography:
Europe, Middle East, Israel, Algeria, Egypt, and Eastern Mediterranean

88. Are Small Modular Reactors Europe’s Energy Salvation?

Author:
Manuel Herrera
Publication Date:
11-2022
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Nuclear power has never lived up to expectations due to its enormous development, construction and maintenance costs, as well as safety concerns. However, governments committed to ambitious climate change targets have taken a second look at it. In Europe, for instance, in January this year, the European Commission added nuclear power to the list of projects eligible for green financing and, in July, included it in its taxonomy.[1] Russia’s invasion of Ukraine, meanwhile, has sent fossil fuel prices soaring and put energy security at the top of the political agenda in Europe.
Topic:
Climate Change, Nuclear Power, and Energy
Political Geography:
Europe and Eastern Europe

89. Putin vs Monnet: European Resilience, Energy and the Ukraine War

Author:
Nathalie Tocci
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
As the Ukraine war escalates with no end in sight, Europe’s resilience is put to test. Nowhere is this clearer than in the energy sphere, where the crisis first created the perfect timing for Russia’s invasion and then became weaponised against Europe in the broader confrontation with the West. In this confrontation, two interpretations of resilience come to the fore: Vladimir Putin and Jean Monnet’s, with the former emphasising pain endurance and the latter transformation through crisis. The jury is out on whether Putin or Monnet will win the day, and whether and how the European Union will prove and strengthen its resilience. But at the height of this crisis, my bet today is squarely on Jean Monnet.
Topic:
Climate Change, Politics, European Union, Institutions, Energy, and Russia-Ukraine War
Political Geography:
Russia and Europe

90. Sense and Nonsense behind Energy Price Caps

Author:
Daniel Gros and Nathalie Tocci
Publication Date:
07-2022
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
In official circles at the highest level, from the G7 to the European Council, a tense debate is taking place on what to do about spiralling gas and oil prices, which have either broken or have come dangerously close to breaking record territory. In Europe, a special meeting of the European Council on energy was originally scheduled for the fall, but is now being brought forward, while the European Commission is working on an emergency plan to prepare for a complete cut-off of Russian gas. Energy prices dominate the agenda of our leaders. Yet it is a confused and often confusing debate that is worth unpacking.
Topic:
Climate Change, Oil, Gas, and Energy
Political Geography:
Russia and Europe