US will not repeat Europe’s mistakes in energy transition, says country's top climate diplomat
US has faced accusations of protectionism in its green industrial strategy but climate diplomat insists approach is better than fostering dependence on China
As global green trade tensions continue to rise, top US climate diplomat John Podesta told the Breakthrough Energy summit in London his country would not repeat European mistakes on energy policy in its own cleantech buildout.
“Europe found itself dependent on a single source of supply from Russia” when it came to oil and gas, said Podesta – an “overdependence” that was brutally exposed when that supply was cut following the invasion of Ukraine.
It was fortunate the US was able to “step up” and increase its supply of LNG to the continent in the wake of that, he said.
On accusations of protectionism regarding US green policy, Podesta said the US would not unlike Europe allow itself to become “dependent on a single source of supply,” in this case China.
Podesta said the US, the world’s largest emitter of carbon dioxide after China, was through its policies making sure “we do our part” by cutting emissions at home.
The IRA showed Biden's commitment to decarbonisation and also gave the US “credibility on the global stage” concerning the energy transition, he said.
Podesta was sitting on a panel also featuring former Italian Prime Minister and European Central Bank president Mario Draghi.
Draghi said that after a decade of “fantastic progress” on the energy transition in Europe, the financial conditions are now “much worse.”
“Unfortunately things have changed. We have war. Europe is poorer.”
Draghi also said Europe had spent “half a trillion” to shield people from the higher electricity prices following the invasion of Ukraine and “out of emergency, we refocused on fossil fuels.”
By 2028, he said there are expected to be 17 new LNG terminals in Europe. “So, it’s not going in the right direction.”
“We’ve lost the so-called peace dividend,” he said, with much higher spending now necessary on defence.
Europe must he said find its place in the energy transition between the “two visions” of the US and China.
The US, he said, had achieved a “good alignment” in its regulation, taxation and foreign policy in its green industrialisation.
China has meanwhile achieved an “almost complete vertical integration of the supply chain” from mining to final production.
“Where does Europe stand?” he asked. “I’m very confident we’ll find our own way.”
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