Geopolitical Issues Challenge Net-Zero Goals
Net zero fossil fuels could be achieved by 2050, but geopolitical issues and market structures are currently challenging this goal, says a Purpose Investment’s commentary. As climate concerns rise to new heights and sources of energy become increasingly politicized, the energy transition is becoming a priority for countries around the world and the face of the future for many industries. However, most recently, the Russia-Ukraine war has forced countries, particularly in the EU, to reimagine their energy transition plans, with the fear of compromised energy security. It says 40 per cent of the natural gas in Europe was previously supplied by Russia; these countries are now left with no choice but to revert back to coal consumption as a source of energy in the meantime. As well, with Russia’s introduction of the ‘Power of Siberia 2’ pipeline to China, major trade relations among the U.S., China, and countries across Europe are at risk.