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22. The Automotive Industry: The Achilles’ Heel of German Economy?
- Author:
- Marie Krpata
- Publication Date:
- 03-2021
- Content Type:
- Special Report
- Institution:
- Institut français des relations internationales (IFRI)
- Abstract:
- The global car market has been shrinking since 2018. This is a key economic sector for Germany whose producers belong to the Top 15 carmakers worldwide. Yet they are running the risk of being outclassed and eventually replaced, given emerging actors in the USA and China. These new competitors benefit from the growing digitization of the mobility sector, disruptive economic models and the obsolescence of vehicles with an internal combustion engine. This form of propulsion is progressively being replaced by less-polluting alternatives, which are being endorsed by public authorities. The Chinese-American rivalry is also impacting German carmakers, whose strategy greatly relies on the globalization of production chains. This has led to major successes in the past, but the threat of a technological decoupling between the USA and China limits German carmakers’ activities in terms of production and exports. Access to the Chinese market, which accounts for nearly 20% of the global population, is indispensable for the German brands that intend to benefit from China’s catch-up effects. European industrial and political actors plan to invest in promising sectors whilst seeking to respect environmental and social objectives. Also, the European Union (EU), led by a German powerhouse, intends to prevent market distortions such as hurdles to market access, while supporting the emergence of technologies and the compliance with production standards. However, developments in the automotive sector are challenging the EU’s capacity to act in a unified fashion, even if the EU is not seeking to impose its vision on the industry’s private sector, in a top-down manner.
- Topic:
- Climate Change, Economics, Energy Policy, Industrial Policy, European Union, Social Policy, Mobility, Industrialization, Green Deal, and Automotive Industry
- Political Geography:
- Europe and Germany
23. Denmark: A Case Study for a Climate-Neutral Europe
- Author:
- Thibault Menu
- Publication Date:
- 04-2021
- Content Type:
- Special Report
- Institution:
- Institut français des relations internationales (IFRI)
- Abstract:
- In recent years, Denmark has steadily emerged as a leader and role model in the global green energy transition. Its greenhouse gas (GHG) emissions since 2010 have been reduced at greater pace than those of the European Union (EU) average. This transformation is all the more impressive, given that the country used to be a significant oil and gas producer which also relied heavily on coal for power generation. From its highly publicized success in offshore wind, to its ambitious goal of cutting GHG emissions by 70% by 2030 - which would put Denmark as a European and global frontrunner, with only Finland being more ambitious and planning to be climate neutral already by 2035 – as well as its pioneering green energy policies, the country has transformed itself into a beacon for low carbon technologies and public policies. The country has a record high share of renewable energy sources in power generation, with wind in the lead. Given the recent announcements and climate goals set by the Von der Leyen Commission, Denmark serves as an interesting case study for other European and world nations alike on how to embark on their own energy transitions. This paper assesses whether the country is really successful in accelerating even more than its European peers in its decarbonization process. And if so, what is so special about Denmark and what can be learned from its transformation? Policies range from well-publicized successes, such as the country’s ability to nearly rid itself from coal in its power mix in less than thirty years by increasingly developing its wind power potential, in leading the offshore wind segment and championing repowering, but also its lesser-known achievements, such as the diffusion of combined heat and power (CHP) and district heating across the country. Another success point of the country’s strategy relies in promoting energy efficiency in the industrial sector as well as its use of energy taxation for enhanced decarbonization, even in challenging sectors such as transportation. Questions remain open, especially concerning the sustainability credentials of biomass, a fuel which is a key component of the country’s energy mix, but also the future role of natural gas, which has an important balancing role in power generation, given the country decision to rid itself of oil and gas (O&G) production by the middle of the century. To a large extent, the Danish success story so far can be linked to a combination of socio-political factors including: a high level of stability and predictability in energy policy stemming from Denmark’s long historical tradition of broad energy agreements, a cross-sectoral and holistic approach to developing the nation’s energy policy involving a high level of participation from various public and private actors, a willingness to back innovative technologies, combined with generous public policy schemes in order to bring them to market-level competitiveness. Next frontiers will consist of large-scale carbon capture and sequestration projects, as well as low carbon energy islands. However, it would be somewhat reductive to simply equate Denmark’s success story to these previously mentioned factors. Indeed, the Scandinavian nation also benefits from certain geographical dispositions which are great assets for its path to decarbonization. For one, the country is ideally placed to develop variable renewable energy sources, most notably wind power given its topography and its strong wind resources. On top of this, Denmark also benefits from an incredibly reliable and interconnected power grid thereby making renewable energy integration into the wide energy system all the easier. In addition, the fact that its power grid is one of the most interconnected in Europe entails that excess renewable energy production can quickly be exported when the wind blows, just as imports can hastily be called upon when wind is found to be lacking. Finally, from a more socio-political perspective, the relatively flat social structure of Danish society as well as the country’s high level of institutional trust, makes policymaking and policy implementation simpler as well as more effective than in other European states. As such, although this paper identifies important lessons to be learnt from Denmark’s decarbonization strategies, the context as well as the particular characteristics of the country in which these were implemented should nevertheless be considered when seeking to establish similarly successful carbon reduction policies. In any case, Denmark is still far from coming close to achieving its objectives and will have to accelerate its decarbonization on all fronts: the country’s current total primary energy supply still relies for 60% on fossil fuels.
- Topic:
- Climate Change, Energy Policy, Decarbonization, and Green Deal
- Political Geography:
- Europe and Denmark
24. Acceleration of Climate Policy and the Energy Transformation in Slovakia
- Author:
- Łukasz Ogrodnik
- Publication Date:
- 07-2021
- Content Type:
- Special Report
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- The Eduard Heger government wants to increase the production of energy from renewable sources and nuclear energy. This is evidenced among others by the preparations for the commissioning of two new units of the Mochovce nuclear power plant. Although Visegrad Group states include pronouncements they plan to use nuclear power in their national energy mixes, the difference in those mixes limits the possibilities of formulating regional climate policy and results in a lack of coherence on the EU forum. Hydrogen fuel, the use of which is growing in Slovakia, also remains an untapped potential for regional cooperation.
- Topic:
- Climate Change, Energy Policy, Government, Nuclear Power, and European Union
- Political Geography:
- Central Europe and Slovakia
25. Unfinished Connectivity in the Bay of Bengal
- Author:
- Amit Bhandari, Sagnik Chakraborty, Naren Punjabi, and Gitanjoli Dasgupta
- Publication Date:
- 10-2021
- Content Type:
- Special Report
- Institution:
- Gateway House: Indian Council on Global Relations
- Abstract:
- The Bay of Bengal is a bridge between the Indo-Pacific and the Indian Ocean, and with a population of 1.4 billion, an increasingly important economic zone in its own right. India has been slow to build regional connectivity. The space has been filled by China's Belt and Road Initiative projects, which have not always been beneficial for host countries. The region may be better off pursuing digital connectivity by enabling tech startups – areas of India’s strength. This research uses maps to explore the potential for energy, transport, and financial connectivity across the Bay of Bengal.
- Topic:
- Energy Policy, Science and Technology, Infrastructure, Regional Integration, Belt and Road Initiative (BRI), and Transportation
- Political Geography:
- China, South Asia, India, Indian Ocean, Indo-Pacific, and Bay of Bengal
26. Risky Bet: National Oil Companies in the Energy Transition
- Author:
- David Manley and Patrick Heller
- Publication Date:
- 02-2021
- Content Type:
- Special Report
- Institution:
- Natural Resource Governance Institute
- Abstract:
- The global energy transition from fossil fuels to cleaner energy will profoundly affect the global economy. It will limit how much greenhouse gases humanity emits and hopefully avoid catastrophic global warming. This transition will, however, also have a profound effect on state-owned national oil companies (NOCs). NOCs—in which the government is the sole or the dominant shareholder—produce half of the world’s oil and gas, and invest 40 percent of the capital in the global oil and gas industry. They are also important for millions of citizens in the developing countries where many NOCs operate. This report explores the risks the energy transition brings for NOCs and governments reliant on oil revenues. With the pace of energy transition uncertain, the authors of this report offer a warning to governments and NOCs as they consider their future investment plans.
- Topic:
- Climate Change, Energy Policy, Oil, and Investment
- Political Geography:
- Global Focus
27. Thermal Coal in Colombia: Perspectives and Risks for the Economies of La Guajira and Cesar Departments
- Author:
- Natural Resource Governance Institute
- Publication Date:
- 04-2021
- Content Type:
- Special Report
- Institution:
- Natural Resource Governance Institute
- Abstract:
- The exploitation of thermal coal in Colombia faces great challenges despite the abundance and quality of the country’s reserves. The main challenges are due to the external context: the downward trend in prices due to the structural drop in consumption due to the rapid substitution of coal for less polluting fuels or renewable sources in the European market, coupled with the great distance to Asian markets, have raised doubts about the economic viability of coal exports from Colombia. Colombia could be one of the first countries to suffer from the contraction in global demand for thermal coal, because its main markets are Turkey (23 percent) and the Atlantic ports in Europe (19 percent), two markets where demand will likely diminish in the short term. The contraction in demand would have various effects on the country’s economy, as it is the second-most important export (after oil), an important source of royalties and one of the main axes of the economies of La Guajira and Cesar departments. This study analyzes the implications of the decline in coal demand for the national economy and for the main producing regions, such as La Guajira and Cesar, which are highly dependent on coal exploitation.
- Topic:
- Energy Policy, Natural Resources, and Coal
- Political Geography:
- Colombia and South America
28. Reconceptualizing Lithuania’s Importance for U.S. Foreign Policy
- Author:
- Nikolas Gvosdev
- Publication Date:
- 07-2021
- Content Type:
- Special Report
- Institution:
- Foreign Policy Research Institute
- Abstract:
- During the immediate post-Cold War period, the importance of Lithuania, along with other Central-Eastern European countries, to U.S. foreign policy increased. Lithuania became one of the jumping-off points for further “democratic enlargement” in Europe, Eurasia, and the Greater Middle East. Today, U.S. policy is focused on retrenchment and consolidation—defined by a shift in attention and resources away from the Euro-Atlantic region and the Greater Middle East towards the Indo-Pacific region—as well as the growing priority of climate change and the environment as central organizing principles. U.S. foreign policy is also increasingly subordinated to domestic political considerations about the costs and benefits of overseas action for constituencies within the United States. In the 2020s, Lithuania’s importance will rest less on the Russia dimension and further Euro-Atlantic enlargement into the post-Soviet space, and more on its ability to play a greater role in European affairs, to assist in the rebalance to Asian affairs more generally, and to contribute to energy, supply chain, and environmental security.
- Topic:
- Foreign Policy, Energy Policy, Geopolitics, and Supply Chains
- Political Geography:
- Europe, Eurasia, Lithuania, and United States of America
29. Indigenous Peoples and Climate Justice in the Arctic
- Author:
- Shaugn Coggins and James D. Ford
- Publication Date:
- 02-2021
- Content Type:
- Special Report
- Institution:
- Georgetown Journal of International Affairs
- Abstract:
- Arctic regions are experiencing transformative climate change impacts. This article examines the justice implications of these changes for Indigenous Peoples, arguing that it is the intersection of climate change with pronounced inequalities, land dispossession, and colonization that creates climate injustice in many instances.
- Topic:
- Climate Change, Energy Policy, Environment, Poverty, Culture, Income Inequality, Justice, Indigenous, and Sustainability
- Political Geography:
- Arctic
30. Transnational Threats (Syllabus Resource)
- Author:
- Georgetown Journal of International Affairs
- Publication Date:
- 02-2021
- Content Type:
- Special Report
- Institution:
- Georgetown Institute for Women, Peace and Security (GIWPS)
- Abstract:
- The following is material to consider for your syllabus. Specifically, there is: Climate Change and Environment, Displacement, Energy Policy and Security, Global Health Security and Pandemics, Globalization and Demographic Trends, Water Politics and Water Scarcity. Scholarly writing on transnational threats written by diverse scholars and experts. Scholarly writing providing geographic variety and geographically varied perspectives. Studies and analyses examining diversity, equity and inclusion-related dimensions of transnational threats.
- Topic:
- Security, Climate Change, Demographics, Energy Policy, Environment, Globalization, Water, Displacement, Pandemic, and Global Health
- Political Geography:
- Global Focus