ENERGY TRANSITION IN TIMES OF GEOPOLITICAL INSTABILITY

Abstract

This paper highlights the necessity of energy transition to carbon neutrality as a geopolitical imperative. Although, it is vital to humanity to reduce emissions of greenhouse gases in order to diminish the negative impact on environment, but it is not less important to move towards carbon neutrality as a central objective of national security policy. With Russia’s invasion of Ukraine energy resources were used as a tool for political influence and intimidation. For this reason, the accelerated energy transition to carbon neutrality will reduce overdependence on hydrocarbons import and will deprive Russia of its leverage in world geopolitics. The accelerated energy transition to clean energy will provide countries with more reliable, affordable, and diversified energy resources to achieve sustainable economic growth. The current geopolitical, economic and energy crises are met in the USA and the EU countries with financial and legal measures on the state level to accelerate transition to clean energy. Besides, the private investors are interested in clean energy sector as it is profitable and environmentally friendly. With the popularization of divestment movement and with the implementation of taxonomy in the EU, we may witness the withdrawal of investments from fossil-fuel sector and their redirection to clean energy one. The public and the private financing in the USA and the EU countries will enable further development, improvement and spread of clean energy technologies. The exponential growth in these technologies will make it dramatically cheaper for the rest of the world. The developing countries on their part must determine how they can contribute to the global ecological supply chain. They may extract raw materials required for the energy transition to carbon neutrality, or they can produce and export renewable electricity and hydrogen etc. By adopting the experience of the USA and the EU countries (and by keeping in mind countries’ peculiarities) in the field of regulation, stimulation and in formation of decarbonization funds, the developing countries will switch from the paradigm “either economic growth or decarbonization” to the paradigm of sustainable green growth.