Natural gas could play an increasing role in the German energy system following the coal exit decided in July 2020 by the German parliament. However, natural gas has no climate benefit compared to coal. What is more, Europe risks to become a battleground for the conflict between Russia and the United States. The construction of the Baltic Sea pipeline Nordstream 2 has set in motion a downward spiral of sanctions and counter-sanctions. US liquefied natural gas (LNG) exports compete with Russian gas exports to Europe. While German and European policy makers debate about an appropriate reaction to the US sanctions, we ask which role will US LNG be able to play in the European natural gas market. Model results by DIW Berlin provide first answers. In the long run, however, the European climate policy commitments will lead to a phase-out of fossil natural gas in the wake of the energy transition in the next decades.
Related Articles
Claudia Kemfert – Germany does not need any new natural gas infrastructure
Germany does not need Nordstream II or LNG. In fact it cannot reach its climate targets if it does not phase out natural gas by 2038 Claudia Kemfert is an economics expert in the areas […]
ITUC: “E-commerce” push at WTO threatens to undermine labour standards
January 28, 2019
Mathew D. Rose
Corruption, Deregulation, Economics, Finance, Gig Economy, Lobbying, Neo-Liberalism in the EU
0
The ITUC has warned that new trade rules currently being tabled would place severe restrictions on governments’ ability to regulate in the interests of working people. The proposals, which come under the banner of the […]
Bill Mitchell: An MMT-Green New Deal and the financial markets – Part 2
In this part, I am briefly outlining what I think an MMT-Green New Deal agenda would encompass in the field of financial market changes. Read here
Be the first to comment