The global shift to cleaner energy sources is not yet a casualty of Russia’s war in Ukraine, according to new research that shows electricity generation has become less carbon-intensive and investment in clean energy has increased since the conflict began. European nations that have led the transition away from fossil fuels in recent years are now scrambling to secure new sources of natural gas ahead of winter as Russia squeezes supply lines. In one of her first major policy announcements, Britain’s new prime minister Liz Truss promised to approve more oil drilling in the North Sea and lift a ban on fracking to boost domestic energy supplies amid soaring prices. During a recent visit to Canada, German Chancellor Olaf Scholz expressed hope that Canadian LNG imports would play a “major role” in his country’s energy strategy. According to S&P Global researchers Etienne Gabel and Xizhou Zhou, public discourse has “decisively shifted” to energy security, with an emphasis on securing fossil fuel supplies. “For those who tend to conflate the energy transition with energy security, the narrative is that there is now less focus on clean energy as countries and companies refocus on fossil fuels,” they wrote in a report published Thursday. “Our research shows that this narrative oversimplifies an extremely complex global energy system and, in the case of the electricity sector, may be false.” While Germany has restarted coal plants, S&P Global found that coal consumption in global electricity generation fell in the first half of 2022, compared with the first half of 2021. Electricity generation from renewable sources increased by 17 percent year-on-year, according to the survey, due to continued capacity additions. This was led by the United States (22 percent) and China (19 percent). Most other regions experienced growth averaging around 10%. S&P Global says electricity generation continues to become less carbon intensive. This helped emissions fall by one percent in the first half of 2022, despite a 2.5 percent increase in global energy demand. The story continues The research says a combination of high fossil fuel prices and supportive government policies drove clean energy investment higher year-over-year in the first half of 2022. Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android.
