Balancing climate mitigation and energy security goals amid converging global energy crises: The role of green investments

Global energy markets are experiencing an unprecedented confluence of events that are driving up gas prices and bringing energy security to the forefront, adding further complexity to already uncertain prospects following global economic recovery from COVID-19. This article examines the factors that have led to the current surge in natural gas prices and the role of green investment in enhancing energy security and accelerating the transition pace for a sustainable world. It also discusses the potential short-and long-term implications of ongoing spikes in energy prices on global energy transition. The analysis highlights that while renewables could provide a promising solution to enhance energy security, the current energy crisis has revealed that the current scale of renewable energy investments is not ready to address ongoing energy needs, forcing countries to re-unlock further hydrocarbon fuel sources such as coal, putting global energy transition on hold. The paper concludes with policy recommendations that enable unlocking clean energy investments amid a strained geopolitical context.

Automated summary

Global energy markets are facing a confluence of events, leading to higher gas prices and emphasizing energy security. The article explores the factors behind the surge in natural gas prices and the role of green investment in advancing energy security and sustainable transition. It also discusses the short- and long-term implications of rising energy prices on global energy transition. The analysis shows that while renewables offer a promising solution, the current energy crisis has exposed the inadequacy of renewable energy investments, forcing countries to rely on fossil fuels such as coal and stalling the global energy transition. The paper concludes with policy recommendations for unlocking clean energy investments in a strained geopolitical context.