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161. Winter is Coming: The Baltics and The Russia-Ukraine War

Author:
Leon Hartwell, Agnė Rakštytė, Julia Ryng, and Ēriks Kristiāns Selga
Publication Date:
12-2022
Content Type:
Special Report
Institution:
LSE IDEAS
Abstract:
In this LSE IDEAS Special Report, the authors focus on the impact of the Russia-Ukraine war on the Baltics. The report highlights both collective and country-level impacts and responses to the conflict. It is argued that Estonia, Latvia and Lithuania have been among the top supporters of Ukraine, not merely in terms of military aid, but also with regards to providing substantial diplomatic and humanitarian support during Ukraine’s darkest hour since the breakup of the Soviet Union. Moreover, it is argued that this literal and metaphorical winter will be a key challenge, not only for Ukraine, but also for the Baltics. Given how closely the fate of Ukraine is intertwined with Estonia, Latvia, and Lithuania, the manner in which the Baltics and NATO respond to the winter could significantly influence the Russia-Ukraine war. A key strategic priority for the Baltics and NATO should be to promote resilience of everything from defense to energy security. Accordingly, the Report concludes with a variety of key policy recommendations aimed at the Baltics, EU and NATO.
Topic:
Security, NATO, European Union, Conflict, Resilience, Energy, and Russia-Ukraine War
Political Geography:
Russia, Ukraine, and Baltic States

162. The Waning India-Russia Partnership is an Unexpected Effect of the War in Ukraine

Author:
Patryk Kugiel
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
The Polish Institute of International Affairs
Abstract:
twitter The Waning India-Russia Partnership is an Unexpected Effect of the War in Ukraine 174 08.11.2022 India has not condemned Russia for its aggression against Ukraine, which stems from historical ideological ties, as well as their strategic and military cooperation. However, the war has led to unfavourable changes from India’s point of view—the weakening of Russia, the collapse of its cooperation with the West, and a growing dependence on China. As a result, Russia is diminishing in importance as a key partner of India, including a supplier of weapons and technology. In the long run, closer cooperation between India and the U.S. and EU countries in the field of security and energy will help to move India away from Russia.
Topic:
Security, Foreign Policy, Partnerships, Energy, and Russia-Ukraine War
Political Geography:
Russia, South Asia, Eurasia, Ukraine, and India

163. A grand bargain to steer through the European Union’s energy crisis

Author:
Ben McWilliams, Giovanni Sgaravatti, Simone Tagliapietra, and Georg Zachmann
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Europe’s energy system faces unprecedented physical and institutional stress. The policy response so far has been excessively nationally focussed and could undermine the goals of calming energy markets over the next 18 months and achieving ambitious decarbonisation targets. At the basis of the crisis is a post-COVID-19 global energy imbalance. While demand bounced back quickly as economies re-opened, supply did not. A particular challenge is that the reducing supply of fossil fuels in line with climate targets has not been matched by a commensurate reduction of fossil-fuel demand. Russian manipulation of European natural gas markets since summer 2021, exploiting its significant market power, has deepened the crisis. Finally, events including weak French nuclear output and the ongoing drought, which has cut hydropower generation, have further escalated the situation. In response to high and volatile prices and forced demand reduction, European governments have tended to opt for narrow and uncoordinated measures that prioritise national security of supply and affordability over an integrated European approach. Subsidising energy consumption instead of demand reduction has been a common and misguided approach. Governments run the risk that energy consumption subsidies become unsustainable, eroding trust in energy markets, slowing action in sanctioning Russia and increasing the cost of the net-zero transition. An integrated European approach and a coordinated plan is essential to address the crisis. European Union leaders must strike a grand energy bargain based on four broad principles: (i) all countries bringing forward every available supply-side flexibility, (ii) all countries making comprehensive efforts to reduce demand, (iii) a political committing to maintain energy markets and cross-border flows, (iv) compensation for the most vulnerable consumers. This grand bargain can be the first step on a new course towards united energy policy at EU level.
Topic:
Markets, European Union, Crisis Management, Energy, and Russia-Ukraine War
Political Geography:
Europe

164. China’s National ETS and the Power Market: How the ETS Can Achieve Significant Emission Reductions

Author:
Yan Qin, Alistair Ritchie, and Yi Chen
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
China’s newly established national emissions trading system (ETS) is intended to serve as the primary tool in assisting China in meeting its "dual carbon" target of CO2 peaking before 2030 and carbon neutrality by 2060. It is the largest ETS globally, accounting for 40 percent of China's CO2 emissions and more than 10 percent of worldwide emissions, with the potential to double its current size once industrial sectors are added. In its initial phase, it covers the power sector, particularly more than 2,000 enterprises operating coal- and gas-fired power stations. However, some critical challenges need to be overcome before the ETS can fulfill its emissions reduction potential in the power sector by driving fuel switching away from coal and toward renewables and low-carbon fuels through the carbon price. China's National ETS and The Power Market: How the ETS Can Achieve Significant Emission Reductions examines these challenges in relation to both the ETS itself and its interactions with the power market. It also proposes a policy pathway to address these challenges and unlock their potential to drive significant and cost-effective CO2 emissions reductions in the power sector and raise large amounts of revenue to fund the transition to carbon neutrality across the expanding ETS sectors.
Topic:
Climate Change, Markets, Carbon Emissions, and Energy
Political Geography:
China and Asia

165. The Risk Pivot: Great Powers, International Security and the Energy Revolution

Author:
Felix Shihundu
Publication Date:
08-2022
Content Type:
Journal Article
Journal:
Conflict Trends
Institution:
The African Centre for the Constructive Resolution of Disputes (ACCORD)
Abstract:
The Risk Pivot: Great Powers, International Security and the Energy Revolution shows a good understanding of conflict trends in Africa. The book highlights and provides evidence for the dangers existing in the energy revolution from fossil fuels to much-needed environmentally friendly, sustainable, and renewable energy that has become the next frontier in great power rivalries. Both the United States (US) and China are valuable stakeholders in this area and command geopolitical influence on the African continent. The book brings into perspective the geopolitical consequences of the revolutionary energy supply, demand and flow and how it is transforming the global economy, international security, and the order of states. According to the authors, the emergence of global middle-class countries, such as the Asian giants, a fast-growing source of energy demand, combined with security-challenged energy producers and exporters, such as Algeria, Libya and Nigeria in Africa, represents geopolitical instability. The authors lay out the foreign policy and security implications of dramatic changes in energy production, distribution and consumption. The danger, what the authors refer to as risk pivot, in international security is caused by a number of factors. The first factor is the increasing dependence of rising Asian powers, such as India and China, on Middle East oil and gas supplies. The second factor is the new energy partnership between China and Russia, a leading fossil fuel producer. The third factor is the shifting centre of global energy markets as a result of energy revolutions in the US. The fourth factor is the increased energy demands due to the rising global middle class, which poses challenges for governance and development. The final factor is the role of the US in securing energy flows from the Middle East following its Asia re-alignment.
Topic:
International Security, Power Politics, and Energy
Political Geography:
Africa

166. Combining Technology-Push and Demand-Pull Policies to Create More and Better Energy Jobs

Author:
Alejandro Nuñez-Jimenez, Christof Knoeri, Joern Hoppmann, and Volker H. Hoffmann
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Policymakers guiding their economies to a low-carbon, prosperous future must strike the right balance between technology-push and demand-pull. The rapid build-out of solar photovoltaics (PV) in recent years has revealed the benefits of generous demand-pull policies, but also their limits. Here, we show why combining robust demand-pull and technology-push policies results in more effective policy mixes that go beyond innovation and deployment to help competitive domestic industries create more and better jobs.
Topic:
Energy Policy, Science and Technology, Carbon Emissions, and Energy
Political Geography:
Global Focus

167. With energy at play in the Ukraine war, everybody pays

Author:
Izabela Surwillo and Veronika Slakaityte
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Despite sustained efforts to turn towards the West, as a major transit country dependent on cheap gas, Ukraine has been particularly vulnerable to Russian pressure. Now, with the outbreak of war in Ukraine, the EU’s problematic dependence on the Russian petrol state is under stress, as diversification of energy supply from non-Russian sources in the wake of war will incur high economic costs for the EU in the near future. The Russian attack on Ukraine has put the EU’s lenient policy towards Russia into question and has highlighted its problematic overdependence on Russian oil and gas. On the 12th day of the war in Ukraine, with Russia under tough Western sanctions, Russian Deputy Prime Minister Alexander Novak stated: ‘We have every right to take a matching decision and impose an embargo on gas pumping through the Nord Stream 1 gas pipeline.’ The International Energy Agency (IEA) has urged the EU neither to extend nor to sign new contracts with Gazprom. Meanwhile the EU is exploring policy options for diversification of gas supply. Russia currently supplies over 40% of the EU’s gas and nearly a third of its oil, leaving the EU exposed to economic and political pressure. Energy blackmail primarily concerns gas supply, as replacing Russian gas with other sources cannot be executed immediately due to insufficient gas infrastructure and market conditions (i.e. limited availability of liquified gas). While oil can be transported by land and sea, meeting the EU’s energy demand will nevertheless require both diversification of energy supply routes and speeding up of its energy transition. This process will prove challenging and costly. Phasing out the EU–Russia energy cooperation after the Russian invasion of Ukraine also marks a major shift in continental energy politics that affects all the parties. For Russia, the loss of the European market implies a huge loss of revenue and a deepening future dependence on China. Ukraine finds itself once again caught in the middle. For years Ukraine increasingly sought greater energy independence from Russia and deeper integration with the EU energy market. Meanwhile, the construction of pipelines such as Nord Stream 2, circumventing Ukraine as a transit state for Russian gas, made Ukraine even more vulnerable because it sent a clear signal to Moscow that energy trade with Europe would not cease, even following the annexation of some Ukrainian territories by Russia in 2014. During the current war, Moscow is claiming that Russia is doing ‘everything in its power’ to keep the flows through Ukraine to the EU stable. However, the damage being done to Ukrainian energy infrastructure and its economy at large is still hard to estimate.
Topic:
Oil, European Union, Gas, Energy, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

168. Reciprocal Pressures: Are Israel-Lebanon maritime border talks doomed to fail?

Author:
FARAS
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
The future of talks between Israel and Lebanon on delineating a shared maritime border, mediated by US Special Envoy and Coordinator for International Energy Affairs, Amos Hochstein remains uncertain following an exchange of escalatory statements from Israel and Lebanon’s Hezbollah about the disputed Karish natural gas field. Both sides suggested that the tensions can escalate into an all-out war unless their conditions are met. However, Lebanese officials including President Michel Aoun stated that the negotiations to demarcate the border are in the final stages.
Topic:
Oil, Treaties and Agreements, Maritime, and Energy
Political Geography:
Middle East, Israel, and Lebanon

169. Gas and Energy Security in Germany and Central and Eastern Europe

Author:
Guntram Wolff and Alexandra Gritz
Publication Date:
12-2022
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Russia’s weaponization of gas supplies caused a shock to the energy security of Central and Eastern Europe. Countries responded by increasing alternative gas supplies and LNG import capacity. Gas flows shifted from the east-west axis to west-east and north-south axes. In the short term, the usage of coal is rising; in the longer term, renewable and nuclear energy. Mitigating the effects of this shock requires the EU to prioritize policies that foster the integrity and security of its energy market.
Topic:
Security, Natural Resources, European Union, Gas, Energy, and Russia-Ukraine War
Political Geography:
Europe, Eastern Europe, Germany, and Central Europe

170. Green Jobs in Cities: Challenges and Opportunities in African and Asian Intermediary Cities

Author:
Wolfgang Scholz and Michael Fink
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Cities account for approximately 70 per cent of global energy consumption and about 75 per cent of greenhouse gas emissions due to the density of economic activities and infrastructure and their often path-dependent development patterns. Cities adopting a green transformation process can minimise their environmental impact and maximise opportunities to improve and support the natural environment. Topics to address are energy efficiency and reduction of non-renewable energy sources to reduce their carbon footprint; actively support waste reduction and management; establish green and resilient infrastructure; encourage nature-based solutions; enhance the efficiency of new buildings; encourage low-carbon transport; and improve water cycle management. Also, these fields will lead to a greener urban economy, create more green jobs – or respectively change jobs towards becoming green – and deliver improved quality of life outcomes for residents. The aim of this discussion paper is to address the challenges, opportunities and fields of actions – respectively interventions – of these economic, but also social transformations on the job market on the level of cities. The regional focus is on African and Asian cities in developing countries. A special focus is on intermediary cities with between 1 to 5 million inhabitants since they constitute the fastest-growing urban areas today and more importantly, they have both the capacity and expertise to guide an economic transformation while still being, at the same time, not too large to be managed effectively, as outlined above. The fields of action for cities in a transformation towards a green economy, thereby creating green jobs, can be clustered into: • land use planning • green buildings and construction • sustainable mobility and urban transport • green and blue urban infrastructure services with nature-based solutions (NBSs) as a cross-cutting issue • renewable energy and energy efficiency The employment effects of a transformation towards a green economy play an important role. The opportunities for cities in Africa and Asia to create green jobs under their own local mandates of decision-making in urban planning and within their own service providers, and/or to support the “greening” of the private sector, will obviously create more green jobs, and respectively shift current jobs into green jobs.
Topic:
Development, Cities, Carbon Emissions, Opportunity, Energy, and Green Jobs
Political Geography:
Africa and Asia