The years 2020 and 2021 will go down in history as the two-year period of the Covid-19 pandemic, a global health catastrophe which, although less severe than the two great pandemics of the 20th century – the Spanish flu pandemic of 1918-1920 and the Asian flu pandemic of 1958-1960 – has caused and is still causing not only extremely severe health problems for millions of world’s citizens, but also severe negative social and economic repercussions.
Once the world has overcome the health emergency, thanks to vaccines and ‘herd immunity’, all nationsshall deal with the economic and social consequences of the pandemic, against which the governments’ ability to ensure their citizens not only health protection, but also new and more appropriate living conditions, will be measured.
It will be a complex challenge which, however, could also be a historic opportunity to launch new development models capable of improving not only people’s living conditions, but also the environment in which we live, with new and daring energy policies.
Fortunately, the plans for recovering from the disastrous economic consequences of the pandemic are all oriented towards what has been defined in Italy – even at institutional level – as the “Ecological Transition”, a formula aimed at planning and orienting the exit from the economic crisis towards an ever wider use of alternative energy sources.
According to the latest report (December 2020) by the International Energy Agency (IEA), “renewable energies can be defined as almost immune to the economic aspects of the pandemic”.
Although global energy demand fell by 5% in 2020due to the collapse of industrial production, the consumption of solar, wind and wave energy increased by 7% over the same period.
Furthermore, the health crisis is leading to the gradual closure of old fossil fuel infrastructure.
The IEA Executive Director, Faith Birol, however, said that ‘renewable energy is resilient to the Covid-19 crisis, but not to political uncertainty… governments should contribute to achieve sustainable recovery with the transition to clean energy’.
As emphasized by Birol, if “the policies promised by President Biden during the election campaign are implemented in the United States”, America could provide a major contribution to the decarbonisation of the energy sector in the coming years.
However, a symbolic step of great political significance has already been taken by the new President who, as first measure adopted just a few hours after taking office, signed the directive bringing the United States back within the scope of the 2012 Paris Agreements on combating climate change – agreements from which Donald Trump had blatantly dissociated himself.
According to the IEA study, renewables will grow substantially worldwide in 2021, driven by the commitment and efforts of China and the United States, while India and Europe will also play their part with a 10% growth in clean energy production.
The most successful technologies will be those in the wind, hydroelectric, marine and photovoltaic sectors.
Again according to the IEA, “the total installed wind, solar and marine capacity is bound to overtake natural gas in 2023 and coal in 2024”.
In all experts’ opinion, however, the rise of renewables and the consequent greater environmental protection shall be guided and led by politics, with a view to winning the bet of a positive exit from the Covid-19 crisis not only with a return to the pre-pandemic status quo, but also and above all with the laying of solid foundations for a better world.
As mentioned above, China is proving to be the driving force behind the ‘turning green’ in energy production.
After being one of the countries mostly responsible for global pollution and global warming due to the whirlwind pace of its economic development, the People’s Republic of China has launched a new five-year plan (the 14thone) within which – as said by the young Minister of Natural Resources, Lu Hao -“China shall develop and promote the harmonious coexistence of man and nature, through the all-round improvement of resource use efficiency and a proper balance between protection and development”.
It is an important commitment that China has immediately undertaken, by concretely promoting research and development in the field of electricity production from sea waves and hydrogen production through water electrolysis, also through innovative models of scientific cooperation with Europe.
In its five-year plan, China foresees that in 2030 carbon dioxide emissions per unit of GDP will be reduced by 65% compared to 2005, and that renewable and clean energy will rank first in energy production.
The European Union will invest 470 billion euros in research and development projects in the field of clean energy, with a particular focus on energy production from hydrogen – as part of a project launched in the summer of 2020, called “Hydrogen Energy Strategy” – thanks to which by 2024 the European Union will equip itself with devices for the electrolysis of renewable hydrogen, capable of outperforming non-renewable and polluting energies, with the production of one million tonnes of clean hydrogen.
Europe has always been at the forefront of marine energy production and has developed technologies that have rapidly spread to the United States, Australia and, above all, China.
Italy is at the forefront of research and production of clean energy from waves and hydrogen.
It has developed the ‘Penguin Wave Energy Converter’, a device which – placed at a depth of 50 metres in sea water – produces energy without any negative impact on flora and fauna.
The same holds true for the Inertial Sea Wave Energy Converter (ISWEC). It is a device which, occupying a sea section of only 150 square metres, produces 250 MWh of electricity annually, thereby cutting production and CO2 emissions by 68 tonnes a year.
Equipment for hydrogen production through electrolysis on an industrial scale will also be made in Italy and will produce 100,000 tonnes of ‘clean’ hydrogen annually within the next 15 years.
It is in this perspective that the ‘China-Europe Cooperation Project for Power Generation and Hydrogen Production from Sea Waves and Other Renewable Energy Sources’ is taking shape, upon the initiative of the Rome-based International World Group and the Shenzen-based ‘National Ocean Technology Centre’.
The agreement is designed to laying the foundations for the development of synergies and coordinated efforts, which will spread from Europe to the rest of the world through the “Belt and Road Initiative”, for the production of clean energy from sea waves in a world where 40% of population lives within 100 kilometres of the nearest sea.
In the coming decades, the production of clean energy and the gradual abandonment of the most polluting production sources will not only have positive economic effects in the field of industrial production.
Clean energy is destined to become a factor of balanced and sustainable growth, thus laying the foundations for new socio-economic development models paving the way for effective globalisation of the climate and environmental problems created by these twentieth-century production models which, albeit having contributed to the progress of humanity, had also reached the point of causing its collapse.
Europe, the United States, China and Italy can become the centres of gravity of a strategy for ‘turning green’, capable of protecting not only the wellbeing of future generations, but also their health.
In the world to come after the pandemic, the environment must stop being merely an asset to be protected and safeguarded, but must become the engine of a new more humane, more efficient, cleaner and more intelligent development model.
Seeing Japan – Indonesia Collaboration in Energy Transition Cooperation
Holding the G7 presidency, Japan is increasingly active in establishing relations with several countries. One of them is Indonesia. The relations that have existed so far between Indonesia and Japan are widely visible on the surface. One of them is in the energy transition sector. Indonesia is in need of a large investment to achieve net zero emissions in 2060. An investment of more than 500 million US dollars is needed to make this happen. This is indicated by the great effort to reduce energy that uses fossil fuels (coal, oil and gas) in people’s lives. Including efforts from Japan to cooperate with Indonesia or vice versa in achieving net zero emissions.
Abundant Natural Resources: A Privilege for Indonesia
The abundance of natural resources owned by Indonesia is an important point for the continuation of cooperation between Japan and Indonesia. Natural resources such as hydrogen, geothermal are important values to be further developed into renewable energy. This is a breath of fresh air for Indonesia, which is trying to achieve net zero emissions by 2060.
Replacing fossil fuels such as coal, oil and gas to renewable energy requires extra effort, Indonesia which is rich in energy resources requires a lot of money in terms of exploration of natural resources. renewable energy resources, such as hydrogen, geothermal. renewable in Indonesia. One of them is through a funding scheme through the Asian Zero Emission Community (AZEC). Through this funding, Japan, which is known to be very generous in helping developing countries in terms of energy, is expected to be able to bring change to the renewable energy transition in a country rich in energy resources, Indonesia. This transition certainly requires a short and gradual process.
State Electricity Company of Indonesia abbreviated as PLN, states that dependence on new coal will decrease in 2030. This is due to the presence of power plants from renewable energies such as geothermal, solar, hydrogen and nuclear and wind (Kompas, 2023).
Japan’s Investment to Indonesia
Indonesia, with all its abundance of energy resources, is considered capable of developing an energy transition. The development of electricity from geothermal, water and biomass are the main sector. This was conveyed by the Government of Japan through Deputy for International Affairs, Ministry of Economy and Industrial Development of Japan Izuru Kobayashi. He stated that his party was ready to assist Indonesia in achieving net zero emissions in 2060 with an environmentally friendly funding and technology assistance scheme.
The above was also supported by another Japanese party, namely from Sumitomo Mitsui Banking Corporation (SMBC). Quoting from IJ Global, SMBC has financial assistance to Asia Pacific countries for clean energy projects through Mitsubishi UFJ Financial Group of US$1.5 billion, Sumitomo Mitsui Financial Group of US$1.2 billion, and Mizuho Financial Group of US$1.2 billion. 1 billion US dollars. In Indonesia alone, as of September 2022, SMBC had invested US$221 million.
Various forms of support by Japan as donors and companions for Indonesia to develop renewable energy should be appreciated. According to the author opinion, this is a challenge for the Government of Indonesia and all of stakeholders inside, to create an investment environment that is safe, good and useful for Indonesia’s future. The use of fossil fuels such as coal for power generation needs to be slowly substituted using renewable energy. The Jokowi administration’s policy of subsidizing electric vehicles for the public can be an entry point for the continuation of Indonesia-Japan collaboration in realizing the energy transition.
The Maneuvering Of Gas Commodities As Securitization Of Russia’s Geopolitical Position
Authors: Luky Yusgiantoro and Tri Bagus Prabowo
In 2012, the Yakutia-Khabarovsk-Vladivostok gas pipeline project was redeveloped under The Power of Siberia (News Ykt, 2012). Putin legalized Gazprom (contractors: Gazprom Transgaz Tomsk). The idea named “Power of Siberia” represents the power of gas pipelines to shape and influence Russia’s geopolitical and geoeconomic situation. A new identity will be launched, conveying the Yakutia-Khabarovsk-Vladivostok gas pipeline and gaining international prominence. The Power of Siberia project is an integrated form of GTS (Gas Transmission System) that will bring the Irkutsk gas region in the fertile eastern part of Russia to the Far East and China. The pipeline location is located in the “Far East,” incredibly close to the border with China, and generally in the Asia-Pacific region. Initially, this gas pipeline was built to facilitate gas trade with China and reduce China’s dependence on coal (Pipeline Journal, 2022). What is the value of this project for both countries to become global concerns?
Furthermore, they have the ability or range to carry gas communications for approximately 4000 km. Due to its geographical proximity and shared economic interests, China is Russia’s most progressive partner in terms of a multifaceted regional and international strategy. Russia and China are known as close partners. The aftermath of Russia’s political alliance was to regain global power, status, and influence lost after the collapse of the Union of Soviet Socialist Republics in 1991, which was the driving force behind the end of the Cold War (Oualaalou, 2021 ). Russia has articulated a vision of rebuilding its global reputation using energy, military might, intelligence, and diplomacy. Russia wants to play a crucial role in the global multipolar system because the West rejects Russia’s vision for a new geopolitical order. They saw many important events related to Russia’s moves in the international order, including its response to the actions of the North Atlantic Treaty Organization (NATO) to try to dominate the nations of the world. The former Soviet Union (East), the failures in the Middle East, the annexation of Crimea, and one of Moscow’s recent invasions of Ukraine mark the military as a turning point in Russian geopolitical politics, especially during the Putin era. Russia has three strategic initiative points, including the ability to deploy and interconnect the means (intelligence, diplomacy, military, cyber, and energy) to gain influence and extend Russia’s global footprint. There is.
Moreover, the Fallacies and Western Ties strategy contradicts America First foreign policy tenets (unipolar) and impulsive decisions as a security threat. Russia wants to maintain its lack of regional interests in certain Baltic states (those still under Russian control) and the Balkans (Cooley, 2017). The Balkans (Albania, Bulgaria, Bosnia and Herzegovina, Croatia, Kosovo, Montenegro, North Macedonia, Romania, Slovenia, and Serbia) have been the cornerstones of great power rivalry for centuries. NATO (North Atlantic Treaty Organization) and the EU (European Union) used the momentum of Yugoslavia’s dissolution in the 1990s to integrate the Balkans as geopolitical hotspots on the Western Front (European Policy). War analysts say the ongoing Ukraine conflict is a way for Russia to raise its stakes in the Balkans and reassert its regional influence (McBride, 2022).
In 2020, natural gas will still be the world’s third-largest primary energy requirement for the global community. Even though the COVID-19 pandemic began in 2019, demand for natural gas increased by 5.3% to 4 trillion cubic meters (TCM) in 2021 (BP, 2022). In 2021, Russia’s total natural gas production will be 701.7 billion cubic meters, the second largest globally, contributing to the strong demand in the global energy market. Russia is essential in the natural gas market (Sonnichsen, 2022). The climate crisis is the most obvious obstacle in the global gas market model. It originates from burning carbon with materials derived from fossil fuels such as oil, natural gas, and coal. However, natural gas is acceptable during the energy transition as it burns the least carbon dioxide (CO2) and pollutants of these three substances (EIA, 2022). It is easier than supplying a gas infrastructure that does not provide infrastructure. Operationally, it is optimal. Talks about climate protection, the climate crisis, and the energy transition are being shaped by Western countries as a way of highlighting Europe’s dependence on gas from Russia, which is geographically accessible and still has gas in other gas reserves. The decision to stop sourcing natural gas from Russia continues to cause European controversy. The pipeline network actively built between Russia and Europe is an essential aspect of why this relationship is used as a tool for Russia to apply pressure—on territorial Europe. Europe uses a climate scenario, and Russia uses a gas-dependent scenario. Efficiency and effectiveness will not be achieved if Europe suddenly has to look for other reserves or switch entirely to this energy mix. Then, with Russia’s eloquence in exploiting the situation and the status quo, natural gas pipelines were used as a form of Russian energy diplomacy to dominate its (European) neighbors. Recognizing that the Western natural gas market is no longer preconditioned, moving target consumers to the Asia-Pacific region is one of the most effective energy plans for Russia’s fossil fuel expansion.
Siberia’s first electricity will cost 770 billion rubles, and the investment in gas production will cost 430 billion rubles. The 1,400 mm natural gas pipeline capacity will increase to 61 billion cubic meters (2.2 trillion cubic feet) of natural gas annually. The pipeline lets the world see natural gas as one of the fossil fuels and does not pollute the air with the carbon and other substances of the climate crisis. , through the capital Beijing and down to Shanghai. According to state media, the intermediate phase will go online in December 2020, with the final southern section expected to start delivering gas in 2025 (Cheng, 2022). Through this agreement, Russia aims to extend its power beyond Mongolia into Siberia 2 in 2030 (IEA, 2022). Conditions for Europe to get 40% of natural gas from Russian pipelines. Germany, in particular, sources about half of its natural gas from Russia (Baldwin, 2022). Despite international media reports of embargoes and sanctions, the crisis has hit Europe hard. Europe must adapt its economic policies to politically justified policies and coordinate them with each other. However, this is a geopolitical struggle, and we must ensure that the country retains its absolute superiority. Russia chooses to invest in and plan for natural gas markets in regions that require or depend on natural gas in the energy sector, i.e., Asia-Pacific via China. China, influencing the Belt and Road Initiative (BRI) plan, is reshaping the geoeconomic position of Russia’s Siberia 1 and Siberia 2 power markets (Lukin, 2021). “Geopolitics is all about leverage” is one of Thomas Friedman’s influential geopolitical maxims. If a country cannot expand its influence, it remains a loser. Nevertheless, Russia is far from this analogy, as mentioned earlier. Russia continues to secure its geopolitical position. It is the embodiment of growing confidence in the reliability of natural gas. Russia still wants to become a major player in natural gas.
Remapping the EU’s Energy Partners to Ensure Energy Security and Diversification
Energy security has been a buzz word in Brussels for a few decades but since Russia’s invasion of Ukraine, followed by sanctions, Russian gas cut-off and physical destruction of North Stream pipelines, forecasts on strained EU energy production due to drought, the stakes have gotten much higher. This was confirmed on March 10th by a joint statement by the US President Joe Biden and European Commission President Ursula von der Leyen, reiterating both parties’ determination to “build clean energy economies and industrial bases”, including clean hydrogen and continue to work together “to advance energy security and sustainability in Europe by diversifying sources, lowering energy consumption, and reducing Europe’s dependence on fossil fuels”.
Last week, the EU energy chief Kadri Simson encouraged all Member States and all companies to “stop buying Russian LNG, and not to sign any new gas contracts with Russia. The EU has pledged to quit Russian fossil fuels by 2027 and replaced around two-thirds of Russian gas last year.
In this context, the Southern Gas Corridor (SGC), delivering Azerbaijani gas through (Trans-Anatolian Pipeline) TANAP and Trans-Adriatic Pipeline (TAP) to the EU, plays a key role in current diversification efforts. The EU increased gas imports via pipelines from Azerbaijan from 8.1 bcm to 11.4 bcm last year. Only two years after its completion, the expansion of the Corridor seems to be likely as the EU and Azerbaijan stroke a deal in July 2021 to double the volume of gas delivery to 20 bcm by 2027 in addition to plans to tap into Azerbaijan’s renewables potential, such as offshore wind and green hydrogen. While encouraging Azerbaijan’s accession to the Global Methane Pledge, the deal aims at collecting natural gas that would otherwise be vented, flared, or released into the atmosphere.
With the opening of the interconnector Greece-Bulgaria (IGB), at least 11.6 bcm of gas is expected to be delivered from Azerbaijan to the EU this year. The IGB has been dubbed as a game-changer for the EU’s energy security, especially as it enabled supplies to Bulgaria and Romania. A Memorandum of Understanding on gas supplies between Azerbaijan and Hungary was also signed this year, which shows that more interconnectors will be needed in the EU if TANAP would be expanded from 16 to 32 bcm and TAP from 10 to 20 bcm.
Moreover, investments will be needed to increase gas production in existing and new gas fields (Shah Deniz, Azeri Chiraq Guneshli, Absheron, Shafaq-Asiman, Umid-Babek, etc.), especially considering growing energy demand in Azerbaijan and its neighbours. Since the Russia-Ukraine war, 10 European countries turned to Azerbaijan to increase existing supplies or to secure new supplies. To meet such growing demands, Azerbaijan is poised to increase cooperation with neighbouring states, such as Turkmenistan, which is home to 50 trillion cubic metres of gas reserves – the world’s 4th largest reserves.
Following the Azerbaijani-Turkmen decision to jointly develop the formerly disputed Dostluq gas field, a trilateral swap deal between Iran, Azerbaijan, and Turkmenistan, and the 2018 Convention on the status of the Caspian Sea by all the littoral states; Azerbaijan, Turkmenistan, and Turkey stated that they were looking “to form a coordinated and multi-option system for delivering energy resources to global markets” on December 14th last year.
These developments could be harbingers of a new Trans-Caspian Gas Pipeline (TCGP), a 180-mile under-sea pipeline that could be integrated into the SGC. Labelled as an EU Project of Common Interest, which could also be eligible for funding under the 2019 US European Energy Security and Diversification Act, this strategic under-sea pipeline project could bring an end to the EU’s energy crisis by securing a cheap source of natural gas, whose price is independent of LNG prices while counterbalancing Chinese, Russian and Iranian influence in Central Asia and beyond. On the other hand, Azerbaijan began the transit of oil from Kazakhstan this year in addition to Turkmenistan, which highlights the potential to use the Middle Corridor for hydrocarbons.
During the 9th Southern Gas Corridor Advisory Council Ministerial Meeting and 1st Green Energy Advisory Council Ministerial Meeting in Baku in February, EU Energy Commissioner Kadri Simson stated “Azerbaijan can potentially become the exporter of renewables and hydrogen to the EU”. At the end of last year Azerbaijan, Georgia, Romania, and Hungary agreed to establish a green corridor to supply the EU with around four gigawatts of electricity generated by windfarms in Azerbaijan with the support of the European Commission.
Over the last several months, Azerbaijan signed documents that will provide investments to create 22 gigawatts of renewable sources of energy, both onshore and offshore. In April 2021, the World Bank started funding the offshore wind development in Azerbaijan, which has a potential of 157 GW. In addition to the Caspian Sea, which ranks second in world for its wind energy potential, Azerbaijan has an estimated 27GW in wind and solar power onshore.The current construction of wind and solar plants in Alat (230 MW), Khizi and Absheron (240 MW) and Jabrayil (240 MW) as well as new investment plans, including in Nakhchivan Autonomous Republic, are expected to further boost renewables production in the Caspian state all by living up to its vast green potential. While the country, with a population of 10 million, accounts for only 0.15% of total global greenhouse gas emissions, it defines green growth as a key priority for 2030. The EU supports the implementation of Baku’s Paris Agreement commitments through the EU4Climate initiative.
The Russia-Ukraine war may create a window opportunity for the EU to engage in concrete actions rather than high-flying buzzwords, pushing the bloc to do more strategic and visionary planning regarding future projects linked to its energy security, such as TCGP, and finally diversify away from Russian energy sources for good. Azerbaijan has proved to be a stable partner in these challenging times, which manifested the vulnerability of certain EU states against Russian economic and political pressure due to Gazprom’s immense infiltration of their gas markets for the past several decades. Now it’s the time to play fair game by a new playbook and to remap the European energy partners while investing in a stable, predictable, affordable, and sustainable energy future for the EU.
Pakistan’s Priority Ranking of SDGs
Sustainable development goals are also known as Global or Universal goals that are meant to guide developing and underdeveloped nation-states...
Putin, Xi, the ICC, and the Demise of Global Judiciary
Authors: Roman Kusaiko and Alexey Ilin* On March 17, 2023, the International Criminal Court (ICC) issued an arrest warrant against...
How Saudiconomy, is an economic-transformational miracle?
What is happening in the Global economy? The outlook seems entirely iffy, in the state of flux and bewildered with...
Japan-Indian Equalizer of China Grow
The two-day visit of Japanese Minister Fumio Kishida to New Delhi on March 2023 suggests that political and geopolitical events...
The Untapped Potential of Women’s Contributions to Peace building
Women’s contributions to peace building have long been undervalued and overlooked, despite their immense potential to contribute to more effective...
Jihadists target Africa and Afghanistan, but also eye China and Russia
All Mr. Mohamed wanted was a job and a marriage. A 22-year-old Somali farmhand, Mr. Mohamed, skeptically retorted, “is that...
Hilton Expands Presence in Mexico with the Debut of Hilton Monterrey
Hilton today announced the opening of Hilton Monterrey, located in the business and financial district of the capital city of...
Southeast Asia4 days ago
Bali governor puts Indonesia on the spot
Finance4 days ago
FORBES: Where is the Russian banking crisis?
Intelligence4 days ago
Maritime Security & Geopolitics in Indian Ocean Region
Eastern Europe3 days ago
The dilemma of China’s role as Mediator in the case of Ukraine
Economy4 days ago
Economic Improvement by Enhancing Operations of Pakistan’s Ports
New Social Compact3 days ago
Aurat March 2023 & Agenda Setting
South Asia3 days ago
Breaking Diplomatic Norms: Indian Response to OIC & Turkish Support for Kashmir Issue
Middle East3 days ago
China Gains Political Clout in the Middle East at the expense of the US’s Indispensability