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Decarbonisation requires making fossil energy more expensive – that’s the whole purpose of carbon pricing. Well, here we have expensive gas & oil! Will this help the energy transition?

Thread! 🧵✍️
The answer is highly unclear because:
1/ higher energy prices promote efficiency, but...

2/ it is now harder to add more price pressure to consumer bills, and

2/ gas prices have pushed electricity prices up, so the relative price of low-carbon energy has not improved
2/ Higher electricity prices bring no good news for the environment as the #GreenDeal relies on electrification to decarbonize polluting sectors of the economy

Expensive electricity will delay much needed investments in electric mobility, electric heat pumps, #GreenHydrogen….
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