Fuel Fix: The Unintended Consequences of Going Green
The Ukraine crisis and the possible use of natural gas as a weapon against the Ukraine and Western Europe is an unintended consequence of EU excessive focus on emissions reduction and green energy. By focusing on its green agenda to the exclusion of energy and economic security, European nations have made their current energy problem much worse. Dieter Helm of Oxford recently observed, “The curious feature of the energy policy that emerged from the middle of the last decade is just how little serious effort has been put into security – in particular Eastern security,”
Twice in the past 10 years, Russia has curtailed gas to the Ukraine and in doing so gas to the Western Europe. This should have been a wake up call to Western European nations. Although some steps have been taken to by-pass the gas pipeline through the Ukraine, there has been no high priority strategic plan to diversify away from excessive dependence on Russia. Europe depends on imports for more half of its energy consumption. Russia provides about 30% of its gas and 35% of its oil. It takes time to change the pattern of imports but Europe has not used the past 8 years since the first cut-off wisely.
For well over a decade, Europe led by Germany has pursued programs to move toward renewable energy and away from fossil energy and nuclear. Germany for example shut down seven nuclear plants in 2011 and the EU has adopted a policy that leads to shuttering coal fired plants that do not meet very strict emission requirements. The Green Policy adopted by the EU has been a disaster as is evident before the current crisis by countries moving away from it because of its impact on electricity prices and domestic industrial investment going elsewhere.