After the Russian invasion of Ukraine began on 24 February 2022, questions about energy independence in the EU and the various ways this could be achieved re-emerged.
Current obligations by the EU to decrease GHG emissions by 20% by 2020 are the most ambitious among industrialised nations. Because of these obligations EU citizens and businesses are experiencing an increasing fnancial burden, EU businesses are losing competitiveness vis-à-vis other industrial or industrialising nations, and a huge bureaucracy has been created that shall perforce have an interest to perpetuate itself.
For a short period, around the turn of the millennium, the UK energy market was highly competitive, offering choice to consumers and keeping prices in check.
There are no historical examples of a raw material running out. Even if the available amount of certain raw materials is very limited and the demand for many of them, such as gold, has been high over the millennia, they have not run out. The price mechanism has ensured that supply met demand.
Hydraulic fracturing, or ‘fracking’, has revolutionised world energy markets, making the United States into a net exporter of natural gas and drastically reducing its dependence on foreign oil. Because of the widespread availability of shale gas, many other countries could experience the same dramatic transformation.
The cost of Ms Merkel’s decision to close all nuclear power stations by 2022 will be paid by all consumers. And it remains to be seen how German businesses will adapt so as not to endanger their international competitiveness.
It should be understood that even the best sounding initiatives can be bogged down by the intricate legislation. Imposing time limits is a good idea, but measures must be taken that they do not create negative effects on their own.
The European Union has committed itself to increase the share of renewable energy up to 20% of the final consumption by 2020, from 9.2% in 2006 (EC 2009). The same political wave is mounting in several other countries, most notably the United States.