Energy Security and The Green Transition

By Jaden Kim, Augustus J Panton, Gregor Schwerhoff

January 12, 2024

Preview Citation

Format: Chicago

Jaden Kim, Augustus J Panton, and Gregor Schwerhoff. Energy Security and The Green Transition, (USA: International Monetary Fund, 2024) accessed November 23, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The current energy crisis has raised important policy questions on how to strengthen short-term energy security while remaining firmly committed to the green transition, a challenge amplified by the recent consensus at COP28 to transition away from fossil fuels. This paper examines the historical determinants of the security of energy supply and analyzes the green transition implications for energy security. Looking back, we find that the diversification of energy trade partners, or the lack thereof, was the main factor that underpinned energy security dynamics within and across countries over the last two decades. Looking ahead, the green transition is expected to have a net positive effect on energy security provided investments are aligned to address new challenges posed by the increased reliance on renewables.

Subject: Commodities, Economic sectors, Electricity, Environment, Metals, Natural gas sector, Non-renewable resources, Renewable energy

Keywords: Climate mitigation, Country diversification indices, Diversification of energy trade partner, Electricity, Energy independence, Energy security, Europe, Geo-political risks, Global, Green transition, Market concentration, Metals, Natural gas sector, Non-renewable resources, Renewable energy, Risks from reliance

Publication Details

Pages:

34
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2024/006
Stock No:

WPIEA2024006
ISBN:

9798400263743
ISSN:

1018-5941

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