Price and prejudice: Discussing Europe’s energy crunch, its causes and way(s) forward
In this webinar organised in cooperation with Eni, we discussed main causes of the unprecedented high levels of energy commodity prices across Europe and its potential consequences on decarbonization and the energy transition.
In October 2021, gas prices are 400% more expensive than in April, significantly contributing to the rise of power prices which have increased by 200%. The combination of a strong recovery in demand, extreme weather events and unplanned supply outages have led to tighter markets. The current high energy prices are climbing the national and EU political agenda. Several European governments have already put in place policies in order to protect the most vulnerable groups and small and medium enterprises.
At the European level, some countries called the European institutions intervention. In its toolbox, the European Commission identifies several measures to address the situation in the short and medium term. In the short-term, the Commission outlines several national responses that could reduce the burden of the negative consequences for those most vulnerable, such as fiscal policies. In the medium term, the Commission will consider revising the security of supply regulation and explore the potential benefits and design of a voluntary joint procurement of reserve gas stocks.
The speakers, who have specific expertise on global and European energy market and transition, discussed the main causes of the current high energy prices and its potential consequences on the energy transition, analyzing the main initiatives under consideration and their feasibility.