European leaders will seek ways to cut their multi-billion-dollar dependence on Russian gas at talks in Brussels on Thursday and Friday, while stopping short of severing energy ties with Moscow for now. EU officials said the current Ukraine crisis had convinced many in Europe that Russia was no longer reliable and the political will to end its supply dominance had never been greater. “Everyone recognises a major change of pace is needed on the part of the European Union,” one EU official said on condition of anonymity. As alternatives to imported gas, the Brussels talks will debate the European Union’s “indigenous supplies”, which include renewable energy and shale gas. --Barbara Lewis,
Reuters, 19 March 2014
German Chancellor Angela Merkel declared the Group of Eight leading nations defunct given the current crisis in Ukraine, in a clear message to Russia that the world's seven other major industrialized countries consider its actions in Ukraine unacceptable. "As long as there is no political environment for such an important political format as the G-8, the G-8 doesn't exist anymore, not the summit nor the format," said Ms. Merkel, in Germany's parliament, the Bundestag. "Russia is widely isolated in all international organizations," the chancellor said. --Harriett Torry,
The Wall Street Journal [Registration Required], 20 March 2014
When leaders of the European Union's member states meet today and tomorrow (20-21 March) in Brussels, they hope to reach consensus on the EU's long-term climate goals. But agreement appears unlikely because of deep divisions between east and west. Ahead of the summit, ministers from 13 member states signed a declaration supporting a European Commission proposal for an EU commitment to reduce carbon dioxide emissions by 40% from 1990 levels by 2030 – up from a 20% target set for 2020. This ‘green growth group' includes France, Germany, Italy and the UK. But Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia are wary of the target and the timeline, and are resisting any such commitment. --Dave Keating,
European Voice[Registration Required], 20 March 2014
Europe has a range of options to shore up its energy security and cut dependence on Russian supplies, including asking the United States to export more gas and working with Iraq, a British government document says. It also urges EU authorities to help member states exploit their own shale gas resources. --Barbara Lewis,
Reuters, 20 March 2014
Governments across Europe, regretting the over-generous deals doled out to the renewable energy sector, have begun reneging on them. To slow ruinous power bills hikes, governments are unilaterally rewriting contracts and clawing back unseemly profits. --Brady Yauch,
National Post, 19 March 2014
The third key feature [of George Osborn’s budget] is the death of whatever was left of the UK government’s feeble attempts to persuade anyone we can and will prevent climate change by limiting CO2 emissions. Osborne changed the carbon tax system and introduced a set of subsidies for those that use a great deal of energy. The overall mix is now a nonsense – imposing levies which are offset by subsidies – and will surely be rationalised soon. But the message is clear: in a time of austerity, and with international energy security disturbed, the priority is cheap abundant energy, not cutting down on energy use to limit CO2 emissions. That is simply a recognition of political reality. --Andrew Lilico,
City A.M., 20 March 2014
If the early 21st century is the “golden age of gas,” as the International Energy Agency has declared, who will be its king? Until 2009, the answer seemed obvious: Russia. But a funny thing happened on the way to the “third Rome” that Russian nationalists view as their destiny. In that year, propelled by the technological innovations of hydraulic fracturing (or “fracking”) and horizontal drilling, U.S. gas production surpassed that of Russia. As crisis erupts in the Ukraine and policymakers struggle to regain our footing amidst its geopolitical aftershocks, we can indeed be grateful that the United States has surpassed Russia as the world’s largest producer of natural gas. --Robert Shum,
The Hill, 19 March 2014
Bulgaria demanded CEZ AS of the Czech Republic, Austria’s EVN AG (EVN) and Prague-based Energo-Pro AS pay back 318 million lev ($226 million) of state subsidies or have their power-selling licenses revoked. Energy and Economy Minister Dragomir Stoynev has said the government will start a license revocation procedure for the three power distributors and will refer the case to the chief prosecutor’s office unless they pay, Capital daily reported today, citing the minister. --Elizabeth Konstantinova,
Businessweek, 17 March 2014
