Gas Deals Beyond 2050 Show Reality Gap on Europe Climate Goals - Bloomberg
Two days after the European Union declared it will push for a global phase-out of most fossil fuels well before 2050, Shell Plc signed a 27-year agreement to buy Qatari liquefied natural gas for the Netherlands.
It’s not the first multi-decade deal to tie the bloc to dirty fuels beyond its targeted deadline — just last week France’s TotalEnergies SE signed a similar contract. The agreements highlight the challenge in reconciling the EU’s ambition to reach climate neutrality by 2050 with its need to ensure energy security after last year’s historic crisis.
“Energy companies seem to be betting Europe will need more gas than politicians predict,” said Christian Egenhofer, senior researcher at the Centre for European Policy Studies.
While Europe has made strides in replacing the cheap Russian gas imports that used to power its economy — mostly by buying liquefied versions of the fuel from places like the US or Qatar — jump-starting its transition to cleaner alternatives has proved difficult.
Governments across the region have prioritized expanding renewables after Russia’s invasion of Ukraine underscored Europe’s need for independent sources of energy, which also cause less damage to the environment.
But high borrowing costs and uncertainty about the commercial viability of some technologies have stalled investments and raised questions about the reachability of Europe’s climate goals. The EU has a binding aim to cut greenhouse gases by at least 55% by 2030 from 1990 levels, and produce no net emissions by the middle of the century.
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