Is Europe heading towards a lasting energy crisis? In just a few months, the price of gas rose to a record high, dragging electricity prices in its wake and also pushing up the price of coal and oil. International inflation, coupled with a lack of labor which is already causing power shortages in some countries such as China, forced to close factories, or supply disruptions at service stations, as in the United Kingdom . For the European Union, this unprecedented crisis is above all due to a significant gap between supply and demand, with a stronger than expected economic recovery and limited supply, in particular due to the Covid-19 pandemic. But for some specialists,it also illustrates the failures of the measures put in place to fight against global warming. France 24 spoke with Benjamin Coriat, professor emeritus of economics at Sorbonne Paris Nord University, member of the Terrified Economists and author in particular of the book “Le bien commun, le climat et le marché” (Éd. Les Liens who release).

How do you think the current energy crisis is linked to measures to combat climate change? 

Benjamin Coriat:

 The transition to renewable energies is both an expensive and difficult process to anticipate, insofar as it is based on new technologies, the effectiveness of which must be proven in use.

It is therefore essential, at the same time, to protect oneself from long-term fixed-price contracts with suppliers, so as to guarantee energy supply until renewable energies can take over satisfactorily. 

However, Europe has embarked on the transition project without regulating energy prices, which change according to supply and demand.

Without a safety net, a cyclical contingency like the one that strikes us today risks having a disastrous effect on the climate, with a decline towards more accessible energies in terms of price but very polluting, such as coal.

As such, the energy crisis we are going through reflects the lack of anticipation and irresponsibility of our leaders in climate matters.

Read also: "Case of the century", the French state condemned to "repair the ecological damage"

Are the measures intended to encourage companies to invest in ecological transition effective?   

The principle of charging for GHG (greenhouse gas) emissions is of course a good way to encourage companies to undertake transformations in their production methods towards green energies. This tool was to be a tax fixing the price per tonne of CO2 and which increases each year as alternative means of energy production develop. The problem is that this system has never been applied to businesses.

Instead, Europe opened a polluting rights market in 2005, and distributed free vouchers setting CO2 emission thresholds beyond which companies must pay for their GHG emissions. As these thresholds were very high, many companies stayed below the limit and resold part of their rights in the markets, allowing the real big polluters to continue their activities at a lower cost. 

Today, with the energy crisis which is leading to a decline in available energies which are sometimes very polluting, the price per tonne of carbon is increasing considerably and is the subject of speculation, with players who buy in the hope of reselling more expensive, betting on a worsening of the crisis.

Subject to the law of supply and demand, this system is a disaster that has nothing to do with protecting the environment.

The crisis has brought to light certain limits of renewable energy (lack of wind for wind turbines in Europe or of precipitation for hydroelectric plants in China).

Have there been any errors of assessment as to the benefit of these technologies?

By putting these tools in place, we discover a certain number of limits. In addition to meteorological constraints, with wind turbines, there is also the question of location, which sometimes poses problems for residents. This is particularly the case at sea, where they are the most effective, but where they sometimes cause friction with fishermen. Energy storage also remains a weak point. This is why we must invest massively in accelerated research because, in the end, the benefit of these technologies can have a huge impact in the fight against global warming. Great progress has already been made, in particular on the cost of these energies, which has fallen by 60% in 10 years. The pro-nuclear often advance the economic argument ofelectricity produced by the power stations but they are based only on the production price. However, if we include the fairing (maintenance of power plants), dismantling, and waste conservation, we realize that the price is in fact very high. Today, it is urgent to change software. The energy crisis we are going through is the symptom of an ill-prepared ecological transition. We need an extremely rigorous public investment policy and a strict framework to ensure long-term policies. Because this perspective, which aims to leave it to the markets to regulate the energy transition, is a big mistake.and the conservation of waste we realize that the price is actually very high. Today, it is urgent to change software. The energy crisis we are going through is the symptom of an ill-prepared ecological transition. We need an extremely rigorous public investment policy and a strict framework to ensure long-term policies. Because this perspective, which aims to leave it to the markets to regulate the energy transition, is a big mistake.and the conservation of waste we realize that the price is actually very high. Today, it is urgent to change software. The energy crisis we are going through is the symptom of an ill-prepared ecological transition. We need an extremely rigorous public investment policy and a strict framework to ensure long-term policies. Because this perspective, which aims to leave it to the markets to regulate the energy transition, is a big mistake.strict supervision to ensure long-term policies. Because this perspective, which aims to leave it to the markets to regulate the energy transition, is a big mistake.strict supervision to ensure long-term policies. Because this perspective, which aims to leave it to the markets to regulate the energy transition, is a big mistake.

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