Almost all of the progress the U.S. has made toward its Paris Agreement target for 2025 has come from falling CO2 emissions from energy use. But greater declines in other greenhouse gas emissions are needed to reach our goal, writes fellow Mark Finley.
The Russian invasion of Ukraine unleashed the use of energy resources as geopolitical “weapons.” But oil and natural gas have followed markedly different paths over the past year, with unexpected results. Why? And what lessons can policymakers learn from these experiences?
Using a framework based on vulnerability, risk and offsets provides valuable insights for evaluating the security of an energy system in transition, writes energy fellow Mark Finley.
Fossil fuel subsidies have allowed energy exporting countries to distribute resource revenue, bolstering legitimacy for governments, many of which are not democratically elected. But subsidy benefits are dwarfed by the harmful consequences of encouraging uneconomic use of energy. Now, with consumption posing a threat to long-term exports, governments face a heightened need to raise prices that have come to be viewed as entitlements. While reforms of state benefits are notoriously politically dangerous, previous experience shows that subsidies can be rolled back without undermining government legitimacy — even in autocratic settings — given proper preparation.