New Cold War System Emerges as a New Challenge to Climate Change
The new Cold War system has intensified since Russia's invasion of Ukraine. Responding to climate change, a common goal, requires cooperation between countries, but faces the risk of weakening the promised cooperation due to ongoing conflicts. The worldwide agreed response to climate change can weaken international cooperation by raising trade barriers between both liberal and authoritarian camps. At least in the short term, the move to implement carbon neutrality appears to have slowed.
The concept of energy independence that will be emphasized along with carbon neutrality
Over the past 30 years, trade has been active around the world, increasing their dependence on each other, but the barriers have been rising since Russia's invasion of Ukraine. When selecting the main power source in a country, it is necessary to consider the source of power that enables economic feasibility and stable fuel procurement. Eastern Europe is located inland, so it has introduced fossil fuels mainly from Russia, and the moment of choice is approaching whether to get closer to Russia again or to have full independence from Russia.
The Age of Fossil Fuel Is Not Longer Left
Since fossil fuels cannot be replaced by other fuels for the time being, they are expected to continue at least until the end of the year, including natural gas and coal. However, the continued strength of fossil fuels is rather a factor that lowers economic feasibility, and will lead to the collapse of fossil fuels in the mid to long term. For example, fossil fuels have also lost their competitiveness in terms of economy with renewable energy.
Eastern Europe to Increase Nuclear Power Plants
Europe began to pay attention again in 2020 while reducing nuclear power plants after the Chernobyl accident. Nuclear power under the EU Taxonomy, which was confirmed in February 2022, was included as a sustainable economic activity under certain conditions. And with Russia's invasion of Ukraine, energy independence has emerged, and related arguments are gaining more strength.
Renewable energy, clear mid- to long-term direction
While the unit price of renewable energy continues to fall, the economic feasibility of renewable energy is relatively highlighted due to the sharp rise in raw material prices in 2022. In policy, 1) the EU emphasizes the expansion of renewable energy supply based on RE Power EU, 2) the United States emphasizes the federal government's clear will to invest in renewable energy, and 3) China's commitment to expand renewable energy.
