Geopolitics of the Energy Transition and the Challenge of Phasing-Out Fossil Fuels

Abstract

The transition to climate-neutrality is taking place against the background of growing geoeconomic rivalry. China and the US have engaged in increasingly hostile trade-related disputes, and multilateral fora for engagement are under strain. More generally, the rise of Chinese state-centered capitalism and its growing influence around the world has raised concern among OECD countries of asymmetric dependencies and waning industrial competitiveness (Gertz & Evers, 2020). In addition, tensions between those driving the transition and those seeking to slow-down global decarbonization efforts are becoming increasingly visible. As frontrunners accelerate their decarbonization efforts, laggards are spending increasing political resources to slow-down progress, leading to heightened political tensions (Quitzow et al. 2021). This panel the relationship between the transition to climate-neutrality and these underlying geopolitical and geoeconomic implications. It will place particular emphasis on the challenge of phasing-out fossil fuels and related dynamics.

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