European industries are struggling to compete due to energy prices that are double those in the U.S., driven by a shift from Russian gas to expensive liquefied natural gas.
Key sectors like chemicals and steel are declining, with companies closing plants and cutting jobs across the EU.
Policymakers are warning that without major changes, European industry risks becoming irrelevant, while renewable energy won't bring relief until at least the mid-2030s.
Key quote:
“For the first time since the Cold War, we must genuinely fear for our self-preservation.”
— Mario Draghi, former European Central Bank chief
Why this matters:
Energy prices have long-term effects on health and economy. As Europe pivots from fossil fuels, the transition is hurting industries that supply essential goods like pharmaceuticals and microchips, with ripple effects across global markets. Factories are going dark, layoffs are looming, and policymakers are sounding the alarm. Read more: In the race for clean energy, the US is both a leader and a laggard — here’s how.
The major gas leak from the sabotaged Nord Stream pipeline last year pushed Sweden’s annual plant-heating emissions upby 7%, the Swedish Environmental Protection Agency reported Thursday.
While Ukrainian diplomats take part in negotiations at the United Nations COP28 climate talks, Russia’s war on the country lurks just in the background.
Germany is facing its second winter without gas deliveries from Russia. But analysts say that for gas shortages to really bite, a lot of things would have to go wrong. Germans themselves are optimistic.
The U.S Treasury adds a significant number of Russian individuals and companies to its sanctions list. It means trouble for the developers of liquified natural gas and new mines in the Russian Arctic.
