BAKU, Azerbaijan, February 16. Europe’s quest for energy security and decarbonization hinges on three pivotal levers, reads the 2024 Global Energy Agenda issued by the Atlantic Council, Trend reports.
“The first, which may seem counterintuitive, is gas. The rise of shale and liquefied natural gas (LNG) has reshaped geopolitics significantly in the twenty-first century. It has diminished the influence of pipeline gas suppliers and displaced coal in the United States and numerous developing nations. While LNG reduces Europe’s dependence on both Russia and coal, this lever is decidedly “Made in America”,” says the Atlantic Council.
The second lever, more apparent, is renewable power. Although renewables curb emissions and reduce the dominance of fossil fuel exporters, their production dominance lies elsewhere. Seventy-six percent of lithium-ion battery cell production, seven out of ten best-selling electric vehicles, and soon 95 percent of solar photovoltaic manufacturing originate from China — this lever is “Made in China”. However, this dynamic might shift under the United States’ Inflation Reduction Act (IRA).
Nevertheless, achieving European renewable energy autonomy remains a challenge, according to the Atlantic Council.
The third lever, and perhaps the most contentious within Europe, is nuclear energy.
“Despite its potency in decarbonization, its utilization remains limited in the West, contrasting with its prominent role in the East. Russia leads as the top nuclear technology and fuel exporter globally, with China rapidly catching up. While European nations debate the role of nuclear energy in their transition, prospects for its indigenous production languish (“Made in Europe”),” the report says.
Europe finds itself sandwiched between three energy powerhouses, lacking the abundant oil and gas resources of the United States or Russia and the industrial prowess of China. Moreover, its energy constraints render European industry increasingly uncompetitive. Political choices by certain member states have hindered a cohesive approach to nuclear power, further exacerbating Europe’s challenges.
“Europe risks being left behind if it does not take swift action to ensure its energy future is “Made in Europe” where necessary, and “Made with Europe” where possible, stabilizing and encompassing its neighborhoods and trade partners. To do so, it must create a compelling complement to the IRA and create the fiscal space to finance it. This requires renewed European leadership and a clear vision on energy security and its vital role in the future of Europe,” reads the report.
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