The Economic Research Portal

Is the energy crisis accelerating the low-carbon transition? A nuanced response for advanced economies — Part 2

Since the Trump administration returned to power, the already considerable disparity in energy policy between the USA and Europe has significantly increased. Admittedly, both are seeking energy sovereignty. But, while European policies remain focused on the low-carbon transition, the current US administration is focused on enhancing US dominance in the fossil fuel sector and rolling back measures that support the energy transition. At first glance, the energy crisis is exacerbating this divergence.