The conflict in the Middle East has sparked an energy crisis in Europe, with prices skyrocketing and leaders scrambling for solutions.
According to a report by the BBC, the crisis has led to a 20% increase in European gas prices and an 8% increase in oil prices. The European Commission has accused Russia of manipulating the EU's energy market, with President Ursula von der Leyen stating, "This market is not functioning anymore."
The EU has been working to reduce its reliance on Russian energy, with a goal of ending all Russian gas imports by next year. However, the bloc is now heavily reliant on Norway and the US for its energy, with the US becoming a key supplier of liquefied natural gas (LNG) to Europe.
Energy Security Concerns
Dan Marks, a specialist in energy security at the Royal United Services Institute, notes that Europe's reliance on outside actors for energy supplies throws up "wildcards" that are often not considered. He warns that continued European reliance on the US for crucial energy supplies could lead to vulnerabilities in the event of a crisis.
Norway is now the EU's largest gas supplier, providing a third of the bloc's annual gas consumption. However, Norway has made it clear that it is already operating close to maximum output, presenting a dilemma for the EU.
EU Response
The European Commission has proposed using revenues earned from the Emissions Trading System (ETS) to help industries in EU member states struggling with rising costs. The ETS forces industry to pay a carbon price for polluting practices, but some EU member states are opposed to the system.
EU leaders are set to meet in Brussels to discuss the energy crisis and potential solutions. The meeting is expected to be dominated by concerns over spiraling energy prices and the impact on industries and consumers.
Long-term Solutions
Experts argue that the EU needs to think more flexibly and invest in long-term solutions, such as renewable energy and energy efficiency. The EU has set a legally binding target to reduce net greenhouse gas emissions by 90% by 2040, but some question whether this target is credible.
The UK and EU are also exploring ways to work together on energy, despite the challenges posed by Brexit. Dan Marks notes that there is a mutual interest in assured energy security, and that the UK's offshore wind fleet and North Sea plans could be an area of cooperation.
