Trump's push for fossil fuels could clash with Europe's green transition

As the U.S. boosts fossil fuel deals under Trump and Biden, Europe's shift to renewables risks reducing demand for American gas.

Gabriel Gavin and Ben Lefebvre report for POLITICO.

In short:

Donald Trump and Joe Biden are both promoting U.S. fossil fuel exports, but Europe's decreasing gas demand could undermine these plans.
Europe's commitment to reducing emissions has led to a significant drop in gas usage, with a shift towards renewable energy.
U.S. companies, expecting a decline in European demand, are pivoting towards Asia for future gas and LNG markets.

Key quote:

"We expect that demand for natural gas is going to continue declining at pace. Given we have these climate commitments, the expectation is that demand will be lower by 2030, even lower by 2040, with the effect that there is no long-term gas demand in Europe."

— Georg Zachmann, senior fellow at economics think tank Bruegel

Why this matters:

The clash between U.S. fossil fuel ambitions and Europe's renewable energy goals could lead to oversupply and economic repercussions. As Europe reduces gas dependency, American companies will need to adapt to changing global energy demands.

www.politico.eu

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