Climate change is the defining challenge of our time. Adequately responding to it requires a profound transformation in the way we produce and consume energy, as well as a wider reorganization of our economic model. Bruegel scholars contribute to this difficult but fascinating task by providing timely analysis on the European climate policy developments, as well as on the evolution of global climate governance. All of this with a special attention to the macroeconomic and geopolitical implications of the European and global decarbonisation process.
Energy is at the core of the climate challenge, and at the same time it represents a fundamental driver of global geopolitical and geoeconomic dynamics. Bruegel scholars work on all the three elements of the energy policy triangle (sustainability, security, and competitiveness), with a view that keeping it in balance alongside the decarbonisation journey represents a key challenge for policymakers in Europe and beyond. This task got even more difficult in 2022, as the Russian invasion of Ukraine ignited a major energy crisis that has pushed Europe to rapidly re-design its energy map. Bruegel contributes to this difficult endeavour by providing policy insights, as well as reliable data on energy flows and policies to better inform policy choices.
Despite high prices, China’s substantial spare oil refining capacity remains restricted.
Challenges of an energy independent Europe.
A price cap on Russian oil might improve the current western sanctions regime, but effectiveness will depend on the west’s willingness
Without Russian gas, the European Union would have to reduce demand by approximately 15%, with big differences between different parts of Europe
The platform could become an effective emergency tool to safeguard Europe’s gas supply, but policymakers need to address challenges to make it work.
The ban on most Russian oil significantly scales up the EU response to aggression against Ukraine, but the bloc should stand ready for retaliation.
A timely reflection on the EU’s latest round of sanctions banning Russian oil imports.
The transition to climate neutrality requires the reallocation of production factors from polluting activities to non-polluting activities.
A stronger adaptation governance framework would benefit adaptation efforts.
A review on green growth and degrowth arguments.
The EU needs to address through public and private funds the lack of private climate finance being channelled to low- and middle-income countries
By acting together, the European Union can optimise its response to the energy crisis in all scenarios but each country will have to make concessions.
The EU lacks the coordination structure and transparent data necessary to most effectively navigate an embargo on Russian oil.
The European Union should apply a tariff on imports of Russian oil; it can be accompanied by a quota for a gradual, conditional phase-out.
To keep European Union capital markets open and integrated, new international standards should be reflected in future European law and accounting prac
While uncertain, studies suggest that climate change will cause significant internal and international migration over the next century.
A requirement for gas to be paid for in rubles is a way for Russia to side-step central bank sanctions.
Even before Russia’s invasion of Ukraine, high natural gas prices triggered an estimated European Union demand cut of about 7%.