Global energy crisis (2021–2023)
Higher energy prices pushed families into poverty, forced some factories to curtail output or even shut down, and slowed economic growth.
[1][2] Europe's gas supply is uniquely vulnerable because of its historic reliance on Russia, while many emerging economies have seen higher energy import bills and fuel shortages.
[10][11][12] According to the New York Times, the drought "reduced hydropower in Norway, threatened nuclear reactors in France and crimped coal transport in Germany.
[28] Food prices increased steeply as Covid lockdowns were lifted and rose even higher following Russia's invasion of Ukraine, putting millions of people at risk.
Russia's blockade of Black Sea ports disrupted food and other commodity exports from Ukraine, while the broader military campaign put the 2022 harvest at risk.
[33] In May 2022, Máximo Torero, chief economist at the U.N. Food and Agriculture Organization, warned European politicians that if they move away from natural gas production too soon, the price of fertilizers will rise and more people in the world will suffer from hunger.
Businesses in Central, Southern and Eastern Europe reported a higher rate of energy consumption increases of 25% or more than the EU average (77% vs.
[39] In 2023, approximately 32% of EU enterprises have invested in new, climate friendly business sectors and technology, to stay up to date with the green transition.
[43] Energy prices continue to be a key issue for companies in the EU, with many citing it as a factor for potential investment cuts.
[47] Former Prime Minister Boris Johnson asked Sheikh Tamim bin Hamad Al Thani, the Emir of Qatar, for help during a meeting at the UN General Assembly in September 2021.
[52][53] Hungarian Prime Minister Viktor Orbán blamed a record-breaking surge in energy prices on the European Commission's Green Deal plans.
Due to improper legislature and speculation, the price of emission allowances has gone out of control, resulting in the surging costs of electricity.
"[67][68] European Commissioner for Climate Action Frans Timmermans suggested: "the best answer to this problem today is to reduce our reliance on fossil fuels.
"[69] In late October 2021, Russian ambassador Andrei Kelin denied that Russia is withholding gas supplies for political reasons.
[70] In the first collective action following the invasion, agreed on 1 March 2022, IEA member countries committed to release 62.7 million barrels of emergency oil stocks.
[75] Economy Minister Robert Habeck said Germany reached a long-term energy partnership with Qatar,[76] one of the world's largest exporters of liquefied natural gas.
[78] In May 2022, the European Commission proposed and approved a partial ban on oil imports from Russia,[79][80] part of the economic response to the Russian invasion of Ukraine.
[82] On 13 July 2022, the Kremlin expressed hope that a visit by President Biden to Saudi Arabia to boost OPEC oil production would not foster anti-Russian sentiments there.
Russia is the largest oil and gas exporter after Saudi Arabia and enjoys a highly valued cooperation with the Arab country in the framework of the OPEC group.
But at current levels, major Gulf producers have little to spare, and Russia blames international sanctions for higher energy prices around the world.
[83] Since the June 2022 G7 meeting, plans had been circulating to cap the price of Russian energy commodities as initially suggested by U.S. Treasury Secretary Janet Yellen and E.U.
Commission President Ursula von der Leyen, in order to lower price levels for Western nations and deprive Russia of its profits.
Energy analysts have also expressed skepticism that a price cap would be realistic because the coalition is "not broad enough"; OPEC+ called the plan "absurd".
[85] French Finance Minister Bruno Le Maire said that France negotiated with the United Arab Emirates to replace some Russian oil imports.
[89] German Economy Minister Robert Habeck complained that the United States and other "friendly" gas supplier nations were profiting from the Ukraine war with "astronomical prices".
[93][94] Natural gas prices in Europe reached their highest point in September 2022 at a multiple of roughly 25 compared to two years prior.
[111] Portugal had 1—3% increase in electricity prices, limited partially due to high levels of domestic sources such as hydropower, solar and wind.
[113] European customers have proved that price signals can be useful by voluntarily reducing their gas consumption by 23% in August and 7% overall so far in 2022 compared to the average over the previous three years.
According to Marc-Antoine Eyl-Mazzega, the director of the energy and climate center at the French institute for international relations, Europe is no longer the continent of stability and peace it once was.
It now has the highest energy cost prices compared to the rest of the world, and strategic competitors now have an advantage over European players.
