Ukraine is accelerating its switch to renewable energy

• The International Energy Agency says Russia’s invasion of Ukraine is likely to hasten the global switch to cleaner energy sources.
• The agency’s executive director, Fatih Birol, announced this after the publication of its annual World Energy Outlook report.
• A cleaner, more economical, and more secure energy system is promised as a result of government responses from all across the world.

The International Energy Agency (IEA) stated on Thursday that Russia’s invasion of Ukraine is likely to hasten the global switch to cleaner energy sources from fossil fuels.

The agency’s executive director, Fatih Birol, announced this after the publication of its annual World Energy Outlook report. “Energy markets and policy have changed as a result of Russia’s invasion of Ukraine, not just for the time being but for decades to come,” he added.

“The energy landscape is rapidly changing in front of our eyes. A cleaner, more economical, and more secure energy system is promised as a result of government responses from all across the world, according to Birol.

The report observed that European sanctions had a negative impact on Russia, the top exporter of fossil resources, as natural gas supplies as well as imports of coal and oil had been reduced.

The IEA predicted that Russia’s share of the global energy market would decrease from roughly 20% in 2021 to 13% by 2030.

Despite the economic impact of decreased Russian oil, gas, and coal supply, the projection implied that additional investments in brand-new fossil fuel projects would not be necessary.

Prices for natural gas “have reached levels never seen before,” frequently going over $250 per barrel. According to the estimate, oil will reach $100 per barrel in the middle of 2022 as coal costs climb.

Investments are necessary to make the switch to green energy, with the IEA forecasting an increase from $1.3 trillion today to $2 trillion by 2030 and net zero emissions by 2050.

According to the report, global emissions of fossil fuels will peak in 2025 as coal use declines over a number of years, natural gas consumption reaches a plateau in 2030, and oil use plateaus in the middle of the following decade before declining.

As rising costs caused food insecurity around the world and poorer households worried about how they would pay for both energy and food, the energy crisis generated “a looming risk of recession.”

According to the IEA, over 75 million individuals who had just recently received access to power were in danger of losing it due to financial hardships. The number of people without access to electricity has increased for the first time since the organization began keeping track of it. It predicted that firewood may once more be used for cooking by about 100 million people.

Governments have already pledged more than $500 billion, primarily in industrialized nations, to protect consumers from the immediate effects, according to the IEA.

Others have increased the amount of oil and coal used to generate electricity, “extending the lifespan of some nuclear power facilities, and speeding the flow of new renewables projects,” while some nations are working to secure adequate gas storage and alternate fuel supplies.

Today’s energy shock serves as a reminder of the fragility and unreliability of our current energy system, according to the IEA, as energy markets continue to be extremely susceptible.

This winter, the European Union may enact a gas price ceiling to prevent unwarranted price increases.

The world is dealing with a crisis of unprecedented breadth & complexity

Oil & gas markets are facing major uncertainties amid today’s geopolitical upheaval

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High energy prices have stoked inflation & created a looming risk of global recession

Read more: https://t.co/xIaOetc4WN pic.twitter.com/NXzYLCdYKb

— Fatih Birol (@fbirol) October 27, 2022

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