Germany is reconnecting coal-fired power plants to its grid, and a number of European countries are looking at doing something similar. They may soon be importing coal from as far away as South Africa and Australia. Why?
Well, because at the start of Russia’s invasion of Ukraine, Europe tore up its cheap gas contracts with Russia. Pipelines were halted. But that didn’t change Europe’s need for Russian energy overnight. Europe is paying a much higher daily price set by Russia (often in Russia’s own currency), which is sending revenues soaring in Moscow and driving inflation in Europe, along with talk of energy rationing. Energy rationing means a slowdown of economic growth, or possibly economic contraction. So, on the energy front, that’s how the war is going in Europe for now.
The West finds itself in this position because Western states have committed to green-energy policies that had the effect of stalling or outright halting investment in carbon based energy — the source of over 80 percent of the world’s energy. It’s not just Europe. Upon taking office, Joe Biden immediately canceled the Keystone pipeline from Canada, sending Canada searching for infrastructure that would allow them to sell their energy to Japan and China.
Here’s the question: How long can the West afford to fight a two-front war, against Putin on one side and climate change on the other?