According to a recent analysis, the Russian invasion of Ukraine will have an ongoing impact on the energy market and supply.
The result, according to the International Energy Agency (IEA), is the first “really global energy crisis.”
It also noted that rising energy costs, brought on by restrictions on oil and gas exports, continue to be a major issue.
However, it said that the crisis should also be considered a turning moment that would hasten the global switch to renewable energy. Q
The Paris-based agency said that government expenditure to shield consumers from price increases is currently $550 billion (£473 billion) globally and is expected to increase further, especially in the UK and Germany.
According to the IEA, countries like the US, Japan, and Korea have implemented the most effective measures to shield consumers from the effects of rising prices and shifting energy infrastructure.
It also mentioned the REPowerEU programme, which seeks to make European Union (EU) nations’ energy independent by 2030.
According to the IEA, by 2030, Russia’s share of the world’s energy trade will drop from 20% to 13%.
According to the analysis, worldwide demand for all fossil fuels will either be peaking or hit a plateau for the first time, depending on current prices and governmental policies.
Even though the UK and Europe imposed sanctions on Russian oil imports this year, it was discovered that the conflict in Ukraine had accelerated investment in cleaner energy sources.
For instance, the UK increased its investment in Direct Air Capture (DAC) technologies, a way to remove dangerous carbon dioxide from the environment.
The UK, Japan, Korea, Canada, and the EU are among the nations that have committed to achieving net zero emissions by 2050, meaning they will not be adding to the number of greenhouse gases in the atmosphere.
The research did, however, issue a warning that clean energy investment would need to exceed $4 trillion by 2030 to achieve net zero emissions by 2050. It is anticipated to only reach half that amount at current rates.