Ukraine war and Biden’s IRA force EU to accelerate energy transition

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Ukraine war and Biden’s IRA force EU to accelerate energy transition
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But business leaders warn that high electricity prices and a barrage of regulation could discourage investment

email rounding up the latestCall for action: A ‘Fridays for Future’ march held in Glasgow to coincide with the COP26 climate summit © Jeff J Mitchell/Getty Images

However, environmental activist Greta Thunberg’s Fridays for Future movement, which encouraged schoolchildren to skip class on Fridays to campaign on climate action, pushed the energy transition up the agenda for politicians and the public alike. Then came Russia’s invasion of Ukraine. Energy costs in Europe shot up. Businesses began to cut operations and some closed. Policymakers desperately sought alternative fuels and Sunfire’s star began to rise.

French glassmaker Duralex has reduced production to cut costs © Guillaume Souvant/AFP via Getty Images Fredrik Persson, president of BusinessEurope, the pan-EU business lobby group, says the combination of high energy prices and hefty regulation has made “the risk of deindustrialisation real” unless Europe acts quickly. “If we, Europeans, fail to create an attractive framework today, we will lose urgently needed investments for the green and digital transformation to global competitors such as the US and China,” he says.

“The EU has established a big milestone: net zero [emissions] by 2050,” says Peter Wilhelm, chair of the shopping centre industry group ECSP. “We would favour a road map providing a more granular approach [to show how to get there].”to support the transition.

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