The 2023 Annual Meeting of the World Economic Forum will conclude today in Davos, Switzerland. Global leaders sought to address
The 2023 Annual Meeting of the World Economic Forum will conclude today in Davos, Switzerland.
Global leaders sought to address the cost-of-living crisis caused by soaring inflation, the prolonged effects of the Covid-19 pandemic and the war in Ukraine. The Forum highlighted difficulties in achieving “Cooperation in a Fragmented World”, largely surrounding the conflicting relationship between the energy crisis and climate ambitions.
As large economies seek to permanently diversify from Russian fuel, they remain reliant on fossil fuels. Further, the climate policy needed to limit global warming to 1.5 degrees Celsius remains stalled as an effective European-wide approach remains to be seen. Clean energy must reach three times its current capacity by 2030 and nine times by 2050.
As the cost of energy rises, some energy-intensive industries in Europe such as glass, steel and fertilizer makers, some facilities may become unprofitable in the short-to-medium term. Some observers speculate this may lead to the exodus of some production to the U.S. or China, where energy is more available and affordable. However, the EU aims to match U.S. efforts in clean energy technologies and counter opponents to affirmative climate action with the Net-Zero Industry Act, which may allow European companies to remain competitive.