The war in Ukraine threatens the climate. Also, the resulting energy crisis is the factor that threatens the climate goals. Some say it posed an existential threat to countries’ climate plans. It is difficult to keep up the sustainability in such hard times when fuel became more important than climate.
The truth is that the European Union’s energy crisis has turned upside down the green transition. It undermined efforts to keep global warming below 1.5 degrees Celsius. Business leaders and environmental activists warned energy crisis threatens climate goals.
With regions throughout Europe potentially facing a fuel shortage this winter, discussants at the Reuters IMPACT sustainability conference in London talked about the challenge of keeping the energy on. One of the options is by producing and using more coal. But eventually, it must not jeopardize the region’s climate goals.
Coal threatens climate goals
Prices for brown coal, used to produce energy, as well as other fossil fuels have risen since many European countries reduced their reliance on Russian gas.
While coal demand was expected to fall in the long run, there has been a revival in Europe in previous months as coal-powered plants have restarted.
Christian Rynning-Tonnesen, CEO of Statkraft, Europe’s largest renewable energy generator said we need coal in the short term during the energy crisis. He added that, in the long run, we need to focus on low emissions and renewables.
The panel title is “Moving Beyond Net Zero“. Other speakers said that with Europe facing an energy crisis this year, the recent increase in coal production should not encourage a fossil fuel revival.
Many speakers at the conference were concerned that the energy crisis would slow climate progress in the short term. Albeit, the others showed optimism. They thought it would help to consolidate the movement toward greener grids and ensure future energy security.
The energy crisis will encourage energy efficiency
Basically, Ikea CEO Jesper Brodin expects the transition to renewable energy to be faster now because the crisis will encourage energy efficiency. Even though the energy crisis threatens the climate right now.
With the next two years expected to be difficult economically, he said, Ikea is introducing more energy-efficient products for customers. They are introducing products with LED lighting and electrical goods powered by solar illumination and batteries.
Decentralized power grids may be a good idea
Embracing decentralized power grids may be the way to expand renewable energy capacity to meet global climate goals. It is one of the solutions, according to Jonathan Maxwell. The CEO of investment firm Sustainable Development Capital spoke at the Reuters IMPACT sustainability conference.
He suggested electricity be generated locally. If it generates on-site, Maxwell said, there would be no waste of energy. According to Maxwell, the losses occur between converting and transmitting and distribution, and end utilization. Maxwell said this is one of the lessons learned about the green transition.