IEEFA Dismisses EU-US Energy Deal as Unrealistic, Warns of 70% US Dependence
The Institute of Energy Economics and Financial Analysis (IEEFA) has dismissed the energy chapter of the EU-US Commercial Agreement as unrealistic and unachievable for the European Union. The financial analysis of the energy industry has found significant issues with the proposed terms.
IEEFA argues that the EU would need to import a staggering $250 billion worth of American energy annually to meet the agreement's requirements. This would involve a substantial increase in energy imports, potentially reaching a 70% dependence on the US. The institute warns that this level of dependence is unsustainable and goes against the EU's commitment to the Green Deal and sustainability ambitions.
To satisfy the agreement, IEEFA suggests that the EU would need to triple its purchases of oil and coal. However, the institute cautions that increasing LNG imports to meet the agreement's targets is unrealistic. This is due to the falling gas demand in Europe, which makes such an increase unfeasible.
The IEEFA's analysis highlights the significant challenges the EU faces in meeting the energy commitments outlined in the EU-US Commercial Agreement. The institute's warnings underscore the need for a thorough reassessment of the agreement's terms to ensure they align with the EU's sustainability goals and energy independence.
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