The war in Ukraine has endangered the energy vulnerability of the euro zone. How will Europe respond to its energy vulnerability?
According to Natixis economists, the desire to reduce energy vulnerability and dependence will lead to diversification of fossil fuel suppliers, faster development of nuclear and renewable energy and a drive to ensure that the equipment needed for renewable energy is produced in Europe and do not create a new external dependency.
Europe will reduce its energy vulnerability
“Short term, Government support for low-income households will increase to offset rising energy prices.”
“In the short and medium term, there will be diversification of European natural gas suppliers. Naturally, Europe will try to diversify its natural gas supplies towards suppliers other than Russia. Europe could get more supplies in the future from the US, Canada, Qatar, Australia, possibly one day Iran and Saudi Arabia if it develops its production.“.
“Long-term, European countries are likely to accelerate their investment in renewable energy (which already represent 39% of electricity and 17% of energy); andin the cases of some countries, accelerate or initiate nuclear programs (today nuclear energy represents 25% of electricity and 14% of energy).
Source: Fx Street
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