Russian military aggression in Ukraine will have long-term effects on energy supplies and markets.
According to the results of a new report, presented by the International Energy Agency (IEA), they say that the world is facing the “first global energy crisis”.
The IEA added that unaffordable energy bills remain a major problem, having risen as a result of curbs on oil and gas exports.
“With ongoing geopolitical and economic problems, energy markets remain extremely vulnerable and the crisis serves as a reminder of the fragility and instability of the current global energy system. The heaviest burden is falling on poor households, where a larger share of income is being spent on energy,” the IEA warned.
The Paris-based agency has estimated that the value of government spending to protect consumers from rising prices is currently $550 billion worldwide and is expected to rise further, particularly in the UK and Germany.
The report also mentioned the REPowerEU scheme, which aims to achieve the independence of European Union countries from Russian energy by 2030. The agency predicts that Russia’s relative share in world energy trade will fall from the current 20 percent to 13 percent. percent by 2030.
Also, it is said that forecasts based on current prices and government policies indicate that world demand for all fossil fuels will either increase or remain at the same levels.
Finally, the report states that to achieve net zero emissions by 2050, clean energy investments will need to be over $4 trillion by 2030. At current levels, only half of that figure is projected to be achieved. .