INDUSTRY REPORT
“ Driven by renewables and energy efficiency , as well as rising costs , today ’ s levels of capital spending are still far from sufficient to tackle the energy and climate crises . The second part of our energy report examines the issues reported by the IEA .”
INDUSTRY REPORT
THE POWER PRINCIPLE
Image : Shutterstock . com .
Energy prices have a significant impact on household expenditures , industrial costs and business competitiveness . Governments around the world are seeking to bring greenhouse gas emissions down to net zero and limit the worst effects of climate change . This is set to redefine global energy security to include the supply of the minerals , materials and manufacturing capacity needed to deliver clean energy technologies .
“ The pressure on these supply chains from COVID-related lockdowns has been compounded by Russia ’ s invasion of Ukraine , with supply disruptions and soaring prices affecting a wide range of key commodities . This turmoil risks undermining the pace of clean energy transitions , such as by hindering the production of EVs or the deployment of renewables , calling for astute action by governments to counter these challenges ,” commented the IEA ( International Energy Agency ).
“ To durably address the challenges we are facing from today ’ s global energy crisis , we need an immediate and massive expansion of clean energy technologies to build a resilient and affordable energy system . Establishing secure and sustainable supply chains for these technologies is essential ,” it added .
A global energy crisis
The International Energy Agency ( IEA ) has been warning for many months that the world is experiencing “ the first truly global energy crisis in history ” – and the coming months will be particularly challenging .
The International Energy Agency has been warning for many months that the world is experiencing the first truly global energy crisis in history – and the coming months will be particularly challenging .
The natural gas crisis in Europe has been building for a while . In September 2021 – five months before Russia ’ s invasion of Ukraine – the IEA pointed out that Russia was preventing a significant amount of gas from reaching Europe . The Agency raised the alarm further in January , with executive director Fatih Birol highlighting that Russia ’ s large and unjustified reductions in supplies to Europe were creating “ artificial