Pubblicato in: Devoluzione socialismo, Materie Prime, Russia, Unione Europea

Putin. Pronto ad aumentare la produzione, purché la EU ne paghi il prezzo.

Giuseppe Sandro Mela.

2021-10-27.

Putin Vladimir 012

Putin blames Europe energy market ‘hysteria’ on green transition.

«Russian President Vladimir Putin blamed the transition to green energy and low investment in the extraction industries on Tuesday for what he said were “hysteria and some confusion” on European markets where energy prices are surging.

Russia, a major oil and gas exporter, is facing pressure to commit to a “net zero” emissions target ahead of the United Nations’ Climate Change Conference (COP26), which starts in Glasgow next month and is aimed at agreeing new policies to fight climate change.»

«He told a government meeting on Tuesday that it was vital that the green transition happened smoothly and criticised what he described as “unbalanced decisions” and “drastic steps”.

“You see what is happening in Europe. There is hysteria and some confusion in the markets. Why? Because no one is taking it seriously,” »

* * *

Europe made mistake in ditching long-term gas deals — Putin.

«Russian President Vladimir Putin said on Wednesday that Europe had made a mistake by reducing the share of long-term deals in natural gas trade and moving to the spot market instead, where prices have surged to record highs»

* * * * * * *

Il blocco europeo dipende quasi totalmente dalla Russia per le forniture di gas naturale, con il quale alimenta la produzione di larga quota delle centrali elettriche, nonché il riscaldamento delle abitazioni.

È ovvio che la sua disponibilità e costo siano elementi critici.

Alti prezzi del natural gas sui mercati europei deprimono il già depresso quadro economico. A ciò si aggiunga l’alta tassazione, i cui proventi sostengono le ambizioni green.

* * * * * * *

«Russia chooses not to raise natural gas supplies to Europe despite Putin’s pledge to help»

«Highly anticipated auction results on Monday showed Russia’s state gas giant Gazprom had not booked additional gas transit capacity for November either through the Ukrainian pipeline system or lines into western Europe via Poland»

«Russia has opted against sending more natural gas supplies to Europe, curbing hopes that Moscow may ease its grip on the market shortly after President Vladimir Putin said the country would be prepared to help»

«Gazprom booked only 30 million cubic meters per day on the Yamal-Europe route of 86.5 million cubic meters per day available for November, an amount comparable to that booked in September, and has not booked any volumes via Ukraine»

«It comes shortly after Putin had suggested the country could provide additional supply to Europe at a time when millions of households are facing soaring winter energy bills»

«→→ Russia is Europe’s largest gas supplier, providing around 43% of the European Union’s gas imports last year ←←»

«→→ November contracts at the Dutch TTF hub — a European benchmark for natural gas — traded at around 92 euros per megawatt hour on Tuesday morning. The front-month contract was down around 2% on the day, paring earlier gains, and has ballooned nearly 400% since the start of the year ←←»

«With the European gas balance tightening into the winter, the risk is high that Russian gas will not provide additional supply flexibility»

* * * * * * *

Quanti si fossero illusi che Mr Putin fosse un filantropo dedito a beneficiare il blocco europeo avrebbero preso un solenne granchio.

In Europa il costo reale del natural gas russo è aumentato in un anno del 400%, e questo peserà ovviamente sul costo praticato ai consumatori.

Si rimane stupefatti però che Eurostat sostenga che in Europa l’Indice dei Prezzi al Consumo sia aumentato solo del 3.4%, con un aumento in Europa del natural gas del 400%.

* * * * * * *


Russia chooses not to raise natural gas supplies to Europe despite Putin’s pledge to help.

– Highly anticipated auction results on Monday showed Russia’s state gas giant Gazprom had not booked additional gas transit capacity for November either through the Ukrainian pipeline system or lines into western Europe via Poland.

– The auction results are regarded as a key signal to the market of upcoming volumes because they take place two to three weeks prior to the month in which natural gas flows.

– Energy analysts say the results show Russia is in little hurry to boost supplies to the region and provides further evidence that the Kremlin is seeking to allow a smooth start-up of commercial flows via Nord Stream 2.

*

London — Russia has opted against sending more natural gas supplies to Europe, curbing hopes that Moscow may ease its grip on the market shortly after President Vladimir Putin said the country would be prepared to help.

Highly anticipated auction results on Monday showed Russia’s state gas giant Gazprom had not booked additional gas transit capacity for November either through the Ukrainian pipeline system or lines into western Europe via Poland.

Gazprom booked only 30 million cubic meters per day on the Yamal-Europe route of 86.5 million cubic meters per day available for November, an amount comparable to that booked in September, and has not booked any volumes via Ukraine.

The auction results are regarded as a key signal to the market of upcoming volumes because they take place two to three weeks prior to the month in which natural gas flows.

Energy analysts say the results show Russia is in little hurry to boost supplies to the region and provides further evidence that the Kremlin is seeking to allow a smooth start-up of commercial flows via Nord Stream 2 — a contentious natural gas pipeline designed to deliver Russian gas directly to Germany via the Baltic Sea.

It comes shortly after Putin had suggested the country could provide additional supply to Europe at a time when millions of households are facing soaring winter energy bills.

Speaking to CNBC’s Hadley Gamble at Russian Energy Week on Oct. 13, the Russian president also dismissed suggestions the country was using gas as a geopolitical weapon as “politically motivated blather.”

                         Offer of more gas ‘conditional on Nord Stream 2’.

Russia is Europe’s largest gas supplier, providing around 43% of the European Union’s gas imports last year, according to data compiled by Eurostat.

However, Russia’s natural gas flows to Europe have been volatile since the end of September, adding to market anxiety and skyrocketing prices.

November contracts at the Dutch TTF hub — a European benchmark for natural gas — traded at around 92 euros per megawatt hour on Tuesday morning. The front-month contract was down around 2% on the day, paring earlier gains, and has ballooned nearly 400% since the start of the year.

EU lawmakers and the head of Ukraine’s state energy company Naftogaz have previously accused Gazprom of deliberately withholding additional volumes of gas to Europe and deepening the region’s energy crisis.

The International Energy Agency, in a rare public rebuke of Russia, also issued a statement in late September that called on Moscow to send more gas to Europe to alleviate the region’s deepening supply crunch.

Russia has said it has fulfilled its contractual obligations to Europe in full.

Separately on Monday, the Swiss-based operator of Nord Stream 2 said it had filled the first line of the pipeline with so-called “technical” gas and was now ready for commercial flows.

“This development raised the risk that not as much capacity would be booked via auctions via Poland and Ukraine, as Gazprom would want to prioritize throughput on its new asset, rather than pay for additional capacity,” said Tom Marzec-Manser, lead European gas analyst at ICIS, a commodity intelligence service.

Construction on Nord Stream 2 was completed last month, and Germany’s energy regulator has since said it has four months to complete certification of the project after receiving all necessary paperwork for an operating license.

“With the European gas balance tightening into the winter, the risk is high that Russian gas will not provide additional supply flexibility,” Kateryna Filippenko, principal analyst of European gas research at Wood Mackenzie, said in a research note.

“The completion of the gas-in procedures at Nord Stream 2, coupled with no significant capacity bookings on other routes seems to send a strong signal to Europe — Gazprom might be ready to supply more gas, but conditional on Nord Stream 2 getting a green light.”

Critics of Nord Stream 2 argue the pipeline is not compatible with European climate goals, increases the region’s dependence on Russian energy exports, and will most likely strengthen Putin’s economic and political influence over the region.

Pubblicato in: Banche Centrali, Devoluzione socialismo, Materie Prime

Blocco Europeo. Record wholesale prices hanno indotto la stagflazione. – Financial Times.

Giuseppe Sandro Mela.

2021-10-17.

2021-10-07__ FT 001

Il wholesale price del natural gas nel Blocco Europeo sale giorno dopo giorno, gravato da una congerie di tasse e balzelli volti a finanziare le energie rinnovabili prossime venture.

Però, nell’attesa che il sol dell’avvenire splenda radioso nel 2050, cioè quando tutti noi saremo morti, il pressante problema attuale è come pagare ora una risorsa naturale che alimenta buona parte delle nostre centrali elettriche.

«Dutch and British wholesale gas prices surged to record highs in several contracts on Tuesday afternoon amid wider energy market price hikes, ongoing supply concerns, colder weather forecasts and a cut in French nuclear generation due to a strike.

The November gas price at the Dutch TTF hub, a European benchmark, traded at a record 120.80, euros/euros per megawatt climbing more than 26% from Monday’s close.» [Reuters]

* * * * * * *

«Gas crunch hits government bond markets as energy prices surge»

«UK gilt yields at highest since May 2019 with natural gas prices above equivalent of $200 a barrel of oil»

«European natural gas prices shot to unprecedented heights on Tuesday, dragging down bond markets, particularly in the UK, in a sign that investors are anticipating wider economic damage»

«European gas contracts for delivery in November jumped by 23 per cent to €117.50 a megawatt hour, up from just €18 six months ago on the prospect of supply shortages over the winter months. UK prices also soared, breaching £3 a therm for the first time, with prices tripling in just the past two months»

«→→ The latest price gains mean gas in the UK and Europe is now trading at more than $200 a barrel of oil equivalent or almost three times the price of crude, with inflationary effects threatening to ripple through economies reliant on gas for heating and power generation ←←»

«Government debt in the eurozone and the US also weakened, with 10-year US Treasury yields climbing close to last week’s three-month high, as investors become increasingly concerned about inflation»

«→→ The rise is so dramatic that it’s feeding these concerns about stagflation ←←»

«But investors have questioned whether central banks can curb inflation driven by tight supplies in energy markets»

«Russia, the largest supplier of natural gas to Europe, has also restricted pipeline exports to long-term contracts only, despite clear signs traders want more spot market sales to help fill storage facilities»

«→→ Russian president Vladimir Putin on Tuesday described the situation in Europe as one of “hysteria and confusion”, blaming tight supplies on under-investment in fossil fuels as economies try to pivot towards renewable energy ←←»

«Surging energy prices are also putting pressure on governments and policymakers in Europe»

«Ursula von der Leyen, head of the European Commission, said on Tuesday that Brussels would explore setting up common strategic storage facilities for gas, warning about Europe’s heavy dependence on Russia for imports»

«Record wholesale prices have also led to the collapse of 10 retail energy providers in the UK since the start of August»

«The cost of supplying the average household in the UK with gas and electricity for a year has soared to more than £1,800, far above the £1,277 price cap»

* * * * * * *

La stagflazione è adesso di casa nel blocco europeo e ci rimarrà fino a tanto che l’attuale eurodirigenza non scompaia.

A quel punto, i sopravissuti potranno cercare di ricostruire qualcosa, sempre che il blocco europeo esista ancora.

* * * * * * *


Gas crunch hits government bond markets as energy prices surge

UK gilt yields at highest since May 2019 with natural gas prices above equivalent of $200 a barrel of oil.

European natural gas prices shot to unprecedented heights on Tuesday, dragging down bond markets, particularly in the UK, in a sign that investors are anticipating wider economic damage.

European gas contracts for delivery in November jumped by 23 per cent to €117.50 a megawatt hour, up from just €18 six months ago on the prospect of supply shortages over the winter months. UK prices also soared, breaching £3 a therm for the first time, with prices tripling in just the past two months.

The latest price gains mean gas in the UK and Europe is now trading at more than $200 a barrel of oil equivalent or almost three times the price of crude, with inflationary effects threatening to ripple through economies reliant on gas for heating and power generation. Traders are now pricing in a peak in the UK consumer price inflation rate at nearly 6 per cent in April next year.

Tuesday’s gas price surge added fuel to a recent drop in bond prices, particularly in the UK where concerns about rising prices have been felt most acutely. UK 10-year government bond yields surged to 1.09 per cent, the highest since May 2019.

Government debt in the eurozone and the US also weakened, with 10-year US Treasury yields climbing close to last week’s three-month high, as investors become increasingly concerned about inflation.

“Bond markets are trading off gas prices,” said Mike Riddell, a portfolio manager at Allianz Global Investors. “The rise is so dramatic that it’s feeding these concerns about stagflation.”

Longer-term inflation expectations have also shifted higher, extending a gilt sell-off that began last month when the Bank of England indicated it could raise interest rates as soon as this year.

But investors have questioned whether central banks can curb inflation driven by tight supplies in energy markets, which have rippled out from Europe to the wider world. The largest economies in Asia are also increasingly feeling the hit of record prices, including in coal markets, with both China and India experiencing short supplies.

The tightness in energy markets stems, in part, from the rapid rebound in economic activity and energy demand from the depths of the pandemic. But gas demand has also risen in Asia, where governments are trying to reduce reliance on highly polluting coal. Europe’s domestic production has also fallen.

Russia, the largest supplier of natural gas to Europe, has also restricted pipeline exports to long-term contracts only, despite clear signs traders want more spot market sales to help fill storage facilities.

Russian president Vladimir Putin on Tuesday described the situation in Europe as one of “hysteria and confusion”, blaming tight supplies on under-investment in fossil fuels as economies try to pivot towards renewable energy.

Ukraine and other eastern European countries have accused the Kremlin of attempting to “weaponise” natural gas supplies to try secure quick approval to start up the Nord Stream 2 pipeline and as part of a backlash against the push towards renewable energy.

Nord Stream 2 will carry Russian natural gas to Germany through the Baltic Sea, bypassing Ukraine, and was targeted by US sanctions until a deal between Angela Merkel and President Joe Biden earlier this year.

Surging energy prices are also putting pressure on governments and policymakers in Europe. Ursula von der Leyen, head of the European Commission, said on Tuesday that Brussels would explore setting up common strategic storage facilities for gas, warning about Europe’s heavy dependence on Russia for imports, while praising Norway for taking steps to increase gas production.

“We are very grateful Norway is stepping up but this does not seem to be the case for Russia,” von der Leyen said. Brussels is under pressure to act in the face of record natural gas prices that have forced governments in Spain, Italy, France and Greece to agree subsidies to protect households from higher costs.

Record wholesale prices have also led to the collapse of 10 retail energy providers in the UK since the start of August, requiring millions of customers to be transferred to other companies.

The cost of supplying the average household in the UK with gas and electricity for a year has soared to more than £1,800, far above the £1,277 price cap.

Pubblicato in: Devoluzione socialismo, Economia e Produzione Industriale, Materie Prime

Norvegia. Equinor autorizzata a fornire alla EU ulteriori 2 miliardi metri cubi natural gas.

Giuseppe Sandro Mela.

2021-10-06.

2021-09-27__ Equinor 001

«La Equinor (ex Statoil) è un’azienda norvegese del petrolio, istituita nel 1972, è la maggiore compagnia del paese ed occupa circa 25.000 persone. Nonostante la Statoil fosse quotata nel listino della borsa di Oslo e della borsa di New York, lo stato norvegese ne manteneva la maggioranza per una quota pari al 70,9 %. La sede centrale si trova nella capitale petrolifera norvegese, Stavanger. Il 1º ottobre 2007 la compagnia si è fusa con la Norsk Hydro, divenendo StatoilHydro, la maggiore compagnia offshore di petrolio e gas del mondo. Dal 15 maggio 2018 ha cambiato la propria denominazione in Equinor» [Fonte]

«Equinor and its partners have received permission to increase gas exports from two fields on the the Norwegian continental shelf to supply the tight European market. Production permits for the Oseberg and Troll fields have each been increased by 1 billion cubic meters (bcm) for the gas year starting 1 October.

Already in June, Equinor took steps to evaluate and develop concepts for enhancing the production and exports to the European market. This work resulted in enhanced production permits from the Ministry of Petroleum and Energy for the Oseberg and Troll fields.

Specifically, Equinor and its partners have received production permits for the gas year 2021 (starting 1 October) which for each is 1 bcm higher than for the current year, i.e. an increase from 5 bcm to 6 bcm for Oseberg and from 36 bcm to 37 bcm for Troll.» [Equinor]

* * * * * * *

«Norway will allow state-controlled Equinor and its partners to increase gas exports from two offshore fields for the next 12 months amid concerns over a shortage of European gas supplies that have sent prices soaring»

«Equinor, Europe’s second-largest gas supplier after Russia’s Gazprom, said on Monday the government was allowing a combined 2 billion cubic metres (bcm) increase in exports for the gas year starting Oct. 1 from the Troll and Oseberg fields»

«The increase corresponds to nearly 2% of Norway’s annual pipeline gas exports, according to Reuters calculations»

«The front-month gas price at the Dutch TTF hub, a European benchmark, has more than tripled this year to record levels, driving up power prices as the winter heating season approaches with below-average levels of gas in storage»

«The situation is prompting Britain to consider state-backed loans to energy firms and big suppliers to ask for government support to cover the cost of taking on customers from companies that have gone bust»

«The increase in exports, divided equally between Troll and Oseberg, will lift volumes from the fields to 37 bcm and 6 bcm respectively»

«Norway has exported about 106 bcm of natural gas to Europe via pipelines since Oct. 1 last year. Exports for the previous full gas year, which ended on Sept. 30, 2020, totalled 105 bcm»

«Equinor, TotalEnergies, ConocoPhillips and state-owned energy firm Petoro all have stakes in both fields, while Shell  holds a stake in Troll only»

* * * * * * *


Norway to raise gas exports to Europe as prices soar.

– To hike by total 2 bcm from Oct. 1 for next 12 months

– Europe seeing record power prices

*

Oslo, Sept 20 (Reuters) – Norway will allow state-controlled Equinor and its partners to increase gas exports from two offshore fields for the next 12 months amid concerns over a shortage of European gas supplies that have sent prices soaring.

Equinor, Europe’s second-largest gas supplier after Russia’s Gazprom, said on Monday the government was allowing a combined 2 billion cubic metres (bcm) increase in exports for the gas year starting Oct. 1 from the Troll and Oseberg fields.

The increase corresponds to nearly 2% of Norway’s annual pipeline gas exports, according to Reuters calculations.

The front-month gas price at the Dutch TTF hub, a European benchmark, has more than tripled this year to record levels, driving up power prices as the winter heating season approaches with below-average levels of gas in storage.

The situation is prompting Britain to consider state-backed loans to energy firms and big suppliers to ask for government support to cover the cost of taking on customers from companies that have gone bust.

“We believe that this is very timely as Europe is facing an unusually tight market for natural gas,” said Equinor. “We are working on measures to increase exports from our fields on the Norwegian continental shelf.”

The increase in exports, divided equally between Troll and Oseberg, will lift volumes from the fields to 37 bcm and 6 bcm respectively, Equinor said.

Norway has exported about 106 bcm of natural gas to Europe via pipelines since Oct. 1 last year. Exports for the previous full gas year, which ended on Sept. 30, 2020, totalled 105 bcm, according to Refinitiv Eikon data.

The Norwegian government sets output quotas for Troll and some other major fields to ensure the country is able to maximise its output of crude oil and natural gas over time.

Equinor, TotalEnergies, ConocoPhillips and state-owned energy firm Petoro all have stakes in both fields, while Shell  holds a stake in Troll only.

Pubblicato in: Devoluzione socialismo, Economia e Produzione Industriale

Blocco Europeo. Il +250% del natural gas manda in fumo le ambizioni green.

Giuseppe Sandro Mela.

2021-09-29.

Andrà tutto bene 001

Nel Blocco Europeo, l’indice dei prezzi alla produzione, PPI, è salito al 12.1%, mentre il WPI, Wholesale Price Index, nella sola Germania si attesta al +12.3%.

Il Blocco Europeo è in stagflazione.

Blocco Europeo è strangolato dai rincari del 280% YoY del Gas Naturale. – Mr Putin ringrazia.

COP26, ‘Glasgow climate summit’ si preannuncia essere un fiasco memorabile

G20. Nessun paese ha adempiuto gli Accordi di Parigi del 2015.

Mondo. Materie Prime. I prezzi alla estrazione continuano a salire.

Ma su tutti i macro dati troneggia il Wholesale Price Index per il gas naturale.

«(Reuters) – Households across Europe face a jump in energy bills this winter due to a global surge in wholesale power and gas prices.

Benchmark European gas prices have surged around 250% this year due to low stock levels, high demand in Asia, high carbon prices and outages.

Governments across Europe are coming under pressure to curb energy bills to help families and small businesses as economies slowly emerge from the coronavirus pandemic.» [Reuters]

* * * * * * *

«Europe’s green ambitions could be hit as gas prices reach record highs»

«The recent spike is already having a tangible impact across the bloc»

«Some European leaders and lawmakers have blamed the EU for the energy price increases»

«The European Union could struggle to advance its green agenda as gas prices soar across the bloc, according to experts who warn against slowing down investment into the sector»

«However, these ambitions could be hit as a natural gas shortage on the continent drives prices higher»

«The front-month gas price at the Dutch TTF hub, a European benchmark, has risen more than 250% since the start of the year. It traded at about 74 euros ($87) a megawatt-hour on Tuesday — just shy of its record high of 79 euros it hit last week»

«The recent spike is already having a tangible impact»

«Soaring energy prices have hit economies across Europe»

«The risk to climate policymaking lies perhaps mostly in a loss of credibility ahead of the global COP26 climate talks in Glasgow later this year»

«“If wealthy countries in the EU are seen subsidizing energy for households that is in part supplied by fossil fuels, then the EU can hardly tell poorer countries to stop subsidizing household fuel consumption supplied by fossil fuels»

«Some European leaders and lawmakers have blamed the EU for the energy price increases»

«Poland said Monday that it will keep a coal mine running, even though the European Court of Justice ruled it should be shut down»

* * * * * * *

Riassumiamo in sintesi.

Con il natural gas rincarato del 250% nel volgere di un anno, si sono scatenate tutte le sequenziali conseguenze.

Questo combustibile alimenta infatti larga quota delle produzione di corrente elettrica.

Le ambizioni green si sono schiantate contro una situazione economica prossima al fallimento.

*


Europe’s green ambitions could be hit as gas prices reach record highs.

– The recent spike is already having a tangible impact across the bloc.

– Spain, for instance, has announced emergency measures to limit the profits that energy companies can make from gas alternatives.

– Some European leaders and lawmakers have blamed the EU for the energy price increases.

*

London — The European Union could struggle to advance its green agenda as gas prices soar across the bloc, according to experts who warn against slowing down investment into the sector.

The European Commission, the executive arm of the EU, has vowed to become carbon neutral by 2050, presenting a concrete plan to reduce greenhouse gas emissions by at least 55% from 1990 levels by the end of this decade.

However, these ambitions could be hit as a natural gas shortage on the continent drives prices higher. The front-month gas price at the Dutch TTF hub, a European benchmark, has risen more than 250% since the start of the year. It traded at about 74 euros ($87) a megawatt-hour on Tuesday — just shy of its record high of 79 euros it hit last week.

The recent spike is already having a tangible impact. Spain, for instance, has announced emergency measures to limit the profits that energy companies can make from gas alternatives, including renewables. The government is also hoping to cap what consumers are paying for their electricity.

“Soaring energy prices have hit economies across Europe, and if Madrid’s actions are imitated elsewhere as governments prioritize cheap energy over the green transition, the EU’s credibility in advancing global climate action could take a hit,” Henning Gloystein, director of energy at the consultancy firm Eurasia Group, said in a note Friday.

Spain is not the only country to cap energy price increases, with France and Greece making similar moves. But the plan in Spain has been the subject of some criticism.

Iberdrola, a Spanish energy firm with a focus on renewables, said the move “would undermine investor confidence in the country” at a time when the nation needs private money to achieve its climate ambitions.

“The risk to climate policymaking lies perhaps mostly in a loss of credibility ahead of the global COP26 climate talks in Glasgow later this year,” Gloystein told CNBC via email.

“If wealthy countries in the EU are seen subsidizing energy for households that is in part supplied by fossil fuels, then the EU can hardly tell poorer countries to stop subsidizing household fuel consumption supplied by fossil fuels,” Gloystein added.

Meanwhile, Jacob Kirkegaard, senior fellow at the German Marshall Fund of the United States think tank, said he is not overly worried at this point, but that the ongoing energy crisis “makes it even more important that the Spanish government finds other sources of financing.”

“You can’t stop financing windmills for people’s bills,” he said, adding that countries should not ease their investments in greener energies.

                         The EU’s fault?

There is a wider problem, however: Some European leaders and lawmakers have blamed the EU for the energy price increases.

Polish Prime Minister Mateusz Morawiecki, for instance, said earlier this month that “Polish power prices are tied to the EU’s climate policies,” according to Politico.

When asked if comments like these could hurt the EU’s green ambitions, Kirkegaard said: “There’s absolutely that risk because clearly the Polish government want to extract more money from the EU for the green transition.”

Poland said Monday that it will keep a coal mine running, even though the European Court of Justice ruled it should be shut down. Under the same ruling, Krakow has to pay a 500,000 euro fine for every day that it keeps the mine open.

The EU’s climate chief, Frans Timmermans, has insisted that the price increases are not the bloc’s fault. “Only about a fifth of the price increase can be attributed to CO2 prices rising,” he told the European Parliament earlier this month. “The others are simply about shortages in the market.”

“Had we had the green deal five years earlier, we would not be in this position because then we would have less dependency on fossil fuels and natural gas,” he added.

‘Fair green transition’

Kirkegaard said that “it is too early to tell” if the price rises are going to jeopardize the EU’s green ambitions. The biggest risk, in his opinion, is whether public support for a greener economy falls because it is perceived to be impacting on their bills.

The European Commission announced earlier this summer that there would be special funds allocated to support the most vulnerable parts of the population in this green transition. The question is whether that will suffice.

“This must be a fair green transition. This is why we proposed a new Social Climate Fund to tackle the energy poverty that already 34 million Europeans suffer from,” Ursula von der Leyen, president of the commission said at a speech last week.