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FX.co ★ Europe’s green policy leads to energy crisis worsening

Europe’s green policy leads to energy crisis worsening

Europe’s green policy leads to energy crisis worsening

The current situation in the gas market leaves no doubt that Europe finds itself in an energy crisis that was triggered by political disputes with Russia. The latter uses commercial projects to put pressure on European governments. Moreover, the issue is exacerbated by the EU's green policy hubris. Forbes journalist Ariel Cohen said Russia is playing “energy poker” with Europe while being on the winning side. “The gas shortage is being used by the Kremlin to tout the necessity of Nord Stream 2,” the journalist stated. “Russia is well-positioned to benefit from the unfolding market conditions,” he added. The global energy crisis has put the EU in a vulnerable situation. With winter approaching, the EU is likely to appreciate any volumes of natural gas supply, even at outrageously high prices.

“The main lesson is: one cannot will energy transformation into reality without building ample, reliable and economically viable baseline generation capacity,” Cohen concluded.

As for the “green policy hubris”, Robert Habeck, co-leader of Germany’s Alliance 90/The Greens party, has urged the German government to discuss the matter of the European gas market with Moscow. According to Habeck, the Nord Stream 2 project has not received permission for the operation because of the amendments to the EU Gas Directive.


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