Europe's High Energy Prices are Not Due to its Climate Policies

Connie Hedegaard, EU Climate Commissioner
NOT responsible for high energy prices

A commentary by UK Tory MP John Redwood in the Commentator really got me fired up this morning. He claims that European citizens are beginning to turn against the "climate agenda" because of high energy prices.

Here is an extended quote:

"Europe has a problem. Dear energy makes European industry much less competitive, at a time when Asia is challenging and the USA has opted for cheap gas. Dear energy squeezes the budgets of individuals and families, at exactly the point where wage growth is also being cut by the rigours of the Euro and the pressures of global competition.

Politicians have assumed that most people in the EU agree with global warming theory. They have assumed that people will therefore buy into the “solution”, burning less fossil fuel.

"The politicians who believe that this crusade is the most important task modern humanity faces, have been altogether quieter about explaining that their policy means dear energy, which in turn means lower living standards."

But his premise is entirely wrong! Climate policies aren't the reason for Europe's high energy prices: it is a lack of investment in energy infrastructure combined with the fact that almost all of their energy has to be imported. 

The EU Emissions Trading Scheme (ETS) is widely seen as a failure because the carbon price is too low not too high. 

Unless Europe finds new sources of gas or oil within its borders, the prices of energy will remain high, regardless of climate policy. 

Politicians should not scapegoat climate policy when other problems are more important. The first step in solving a problem is to diagnose the cause.