The year 2022 left several unresolved issues in the global energy and climate policy landscape. The Russian invasion of Ukraine had a significant impact on the global energy crisis, resulting in a sharp increase in fossil fuel prices. Dr. Christou, Senior Research Fellow at the Institute, explains that the crisis also affected the objective of energy transitions and raised questions about the efficacy of EU policies, particularly the European Green Deal. Two divergent policy trajectories emerged, with some countries accelerating the green transition while others backtracked on commitments and relied on fossil fuels. The outcome of COP27, the United Nations Climate Change Conference, further highlighted the challenges in addressing carbon emissions and financing the transition. While there are hopeful signs, such as meaningful dialogue with multilateral institutions and the creation of a loss and damage fund, major questions remain for COP28. The Eastern Mediterranean region, known for its natural gas reserves, faced both direct and indirect consequences from these global developments. The global energy transition's acceleration has slowed, leading to a resurgence in the natural gas market, particularly in the liquid natural gas (LNG) sector. Regional state actors in the Eastern Mediterranean have adapted by upgrading their LNG infrastructure and shifting away from pipeline reliance to floating storage and regasification units (FSRU). This shift could potentially ease tensions in the region.
