The energy crisis: adding fuel to the fire in Europe
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A global shortage of energy is fueling soaring prices and raising the spectre of stagflation in Europe. An orderly climate change transition plan, with more investment into renewables, is urgently needed.
The key takeaways from this Economic insights are:
- Europe is in the eye of a global energy price storm as tight supply coincides with a post-COVID-19 demand surge.
- Natural gas futures in Europe almost doubled in September alone to reach record highs.
- "Fuel poverty" risks fueling social tensions as low-income households are disproportionately affected.
- The crisis is in part an unintended consequence of a global push to reduce reliance on fossil fuels.
- Much more development and investment into reliable renewable energy supplies are needed.