Gas prices in Europe have skyrocketed by 600% in 12 months, driven by a global surge in demand following the Covid-19-induced economic slowdown, spells of cold weather and weak flows of gas from Russia. It is expected that the continent\u2019s gas supplies will soon fall to critical levels. The situation has highlighted the precarity of Europe\u2019s energy security framework, and none more so than in Germany, whose decision to phase out both nuclear and coal and its reliance on Russian gas, leave it particularly vulnerable to fluctuations in supply.<\/p>\n
Germany\u2019s Green Transition<\/strong><\/p>\n Germany currently ranks 13th<\/sup> in the world in the Climate Change Performance Index, and its newly elected coalition Government has announced ambitious new climate policies<\/a> within weeks of taking office. These include a quest to generate 80% of its electricity from renewable resources by 2030, to enhance Germany\u2019s long-term sustainability and energy security. With coal currently Germany\u2019s primary electricity source, achieving this would require renewable electricity generation to almost double in less than a decade, and the \u20ac60 billion pledged thus far to support climate action and improve Germany\u2019s infrastructure is unlikely to suffice. Without further private or public investment in renewable energy, and with a continued phase-out of nuclear and coal, Germany is likely to face further energy shortages. This may force it towards less secure energy options in the short-medium term, including increasing reliance on Russian gas.<\/p>\n The Future of Nord Stream 2<\/strong><\/p>\n For a time, the German Government had hoped that Nord Stream 2 \u2013 a \u20ac10 billion pipeline bringing Russian gas to Germany \u2013 could be part of the solution. The project has long been opposed by the United States, the United Kingdom and a number of other European nations, which believe the pipeline will increase German reliance on Russian resources and undermine Ukraine\u2019s economy and security. In July 2021, Germany and the United States reached a deal to allow the project to go ahead, on the proviso that, alongside promoting investments in Ukraine\u2019senergy transition, should Russia attempt to use energy as a weapon against Ukraine, Germany would take action.<\/p>\n With an estimated 100,000 Russian troops now assembled on the Russia-Ukraine border, that time may now have come and Germany has come under increasing pressure from its allies to reconsider the project. New German Foreign Minister and co-Leader of The Greens, Annalena Baerbock, has announced that the project could not be formally approved<\/a> in its current state because it does not fulfil the requirements of European energy law. She has also warned that if Russia-Ukraine tensions escalate, the pipeline \u2018could not come into service\u2019. However, Chancellor Olaf Scholz, an historical supporter of the pipeline, has been more opaque, talking vaguely of \u2018consequences\u2019<\/a> if Russia invades Ukraine but avoiding the opportunity to link the two issues together.<\/p>\n