Finance and economics | Going great guns

War and subsidies have turbocharged the green transition

They may have knocked as much as ten years off the timeline

dpatop - 07 February 2023, Lower Saxony, Hohenhameln: The sun rises behind Mehrum power plant in the Peine district. The coal-fired power plant has been back on the grid as a "market returnee" since August 2022. An ordinance had allowed hard coal-fired power plants from the so-called grid reserve to be put back into operation in order to save natural gas. Photo: Julian Stratenschulte/dpa
Image: DPA

To many activists, Lutzerath, an abandoned hamlet in Germany, symbolises the nightmare of the global energy crisis. For months campaigners blocked the site’s demolition after Robert Habeck, the country’s energy minister, allowed a utility firm to mine for lignite—the dirtiest form of coal—under its graffitied houses. As a giant excavator swallowed its way closer, hundreds of police, unfazed by the pyrotechnics propelled at them, dragged protesters from their stations. Now the village is empty; its last buildings gone. Only bits of lutzi (cables and roads) are left for the bucket-wheeled machine to gobble up.

In their panic to keep the lights on, politicians across Europe and Asia are reopening coal mines, keeping polluting power plants alive and signing deals to import liquefied natural gas (lng). State-owned oil giants, such as the uae’s adnoc and Saudi Aramco, are setting aside hundreds of billions of dollars to boost output, at the same time as private energy firms mint enormous profits. Many governments are encouraging consumption of these dirty fuels by subsidising energy use, to help citizens get through the winter.

This article appeared in the Finance & economics section of the print edition under the headline "Going great guns"

Why inflation will be hard to bring down

From the February 18th 2023 edition

Discover stories from this section and more in the list of contents

Explore the edition

More from Finance and economics

What campus protesters get wrong about divestment

Will withdrawing money hurt Israel?

Hedge funds make billions as India’s options market goes ballistic

The country’s retail investors are doing less well


Russia’s gas business will never recover from the war in Ukraine

Hopes of a Chinese rescue look increasingly vain