Given that the European ‘Green Deal’ plans to radically transform the European energy system, the European Union must be prepared to manage the geopolitical repercussions that will result from its internal decisions, notably by helping the oil and gas exporting countries in its neighbourhood such as Russia and Algeria, according to a report published on Wednesday 3 February by the Bruegel think tank.
With almost three-quarters of the EU’s current energy system based on fossil fuels, EU imports of coal are expected to fall by 71-77% between 2015 and 2030 and imports of oil and natural gas by 78-79% and 58-67% respectively by 2050, the report says.
According to the authors, such a transformation of the European energy system will inevitably have geopolitical repercussions on: – oil and gas producing countries in the EU neighbourhood; – the global energy markets; – European energy security; and – global trade, including through carbon adjustment measures at borders.
They therefore recommend that the EU engage with neighbouring oil and gas exporting countries “to foster their economic diversification, including into renewable energy and green hydrogen that could in the future be exported to Europe”.
See the report: https://bit.ly/3jdQjMu (Original version in French by Damien Genicot)