Green Energy Transition and War

The US and European countries have banned Russian oil and gas imports. How will this affect the energy transition?

• The US and UK announced that they would ban the import of Russian oil and gas. The EU has also come up with a plan to reduce its dependence on Russian energy by two-thirds this year.
• The EU is expected to have its gas stocks at 90% capacity by October instead of the regular 30%. The short-term perspective for the EU is to import gas from the US and Africa.
• The effects of these moves have already made their presence felt. Oil prices are hovering around $130 per barrel, a record since 2011.
• Analysts worry that this will postpone the green energy transition. Germany announced plans to start new Liquefied Natural Gas terminals, coal usage is set to go up, among other things.
• The post-pandemic energy use already led to a spike in carbon emissions. Using coal and imported gas from elsewhere and slow-moving renewable energy projects aren't going to bring emissions down.
• Would these developments put roadblocks on the green energy transition highway or is there a scope to turn this adversity into an opportunity for greener energy? We explore in this reading.