Poland will take over the presidency at a important second for the EU’s economic system – assessed the top of the Worldwide Vitality Company (IEA) Fatih Birol. In response to him, the EU made three errors: it turned depending on Russia, deserted nuclear vitality, and allowed China to outpace it within the space of inexperienced applied sciences.
Birol participated on Monday in Brussels in a gathering of vitality specialists devoted to Poland’s presidency of the EU Council. Poland will lead the work of the member states for the primary six months of 2025.
Birol identified the anticipated technique on clear business being ready by the European Fee, which is to be offered throughout the first 100 days of its new time period. Which means the dialogue on it would coincide with the Polish presidency.
The top of the IEA argued that the EU wants a brand new plan for business as a result of it has to repair three historic errors it made. The primary was “counting on one nation” and never diversifying sources of vitality useful resource provides. As he mentioned, already in 2004 the chief economist of the IEA warned within the British every day “Monetary Instances” that Germany shouldn’t turn out to be depending on Russia. “In useless” – he added.
The second mistake of Europe, as Birol mentioned, was “turning its again” on nuclear vitality. “20 years in the past, 30% of electrical energy in Europe got here from nuclear vitality” – he emphasised. As he added, some nations determined to desert it fully, whereas others stopped investing in it. Due to this fact, quickly nuclear would be the supply of solely 15% of electrical energy within the EU.
The third mistake considerations the lack of management over the RES market, particularly photo voltaic panels. He recalled that after Europe accounted for 60% of the manufacturing of those installations, as we speak 80% comes from China.
Birol additionally identified three challenges that Europe must face, that are the results of errors made previously. First, the EU should cut back vitality prices, that are 5 occasions increased than within the USA, which deters business.
Nevertheless, the IEA director reassured that pure gasoline costs will fall sooner or later as a result of giant inflow of LNG from the USA to Europe. “Take a look at oil costs as we speak – $70 a barrel regardless of the continuing battle within the Center East, as soon as costs could be three-digit already” – he mentioned. In Birol’s estimation, consumers will quickly form the value of this gas.
The second step needs to be to save lots of Europe’s potential by way of “applied sciences of tomorrow”. As the top of the IEA mentioned, the Union ought to discover an space the place it might stay a significant participant; this contains applied sciences equivalent to warmth pumps, offshore wind farms, electrolysis, and so on.
In Birol’s opinion, the EU must also contemplate the issue of the lengthy and sophisticated decision-making course of, which makes it troublesome to rapidly reply to new challenges.
“The Polish presidency will fall at an important second, I hope you are taking it severely” – he addressed the Polish authorities. (09.12.2024)
