Global Energy Politics: A game-changing Political diplomacy – Part 2
In the previous blog (What Is Global Energy Politics? How and who shapes the strategic game? – PolyBlogger.com), we saw the following topic – Now in this blog, we will see – Those who can control energy control most of the politics. Production of energy brings prosperity, security, and peace in the region because the consumer countries will always protect their interest, leading to the security of the producers. Having said that, let’s deep dive into the main topics. Sustainability The world is now behind sustainable investments and growth. But what is sustainability? It has three parts: ESG – Environment, Social, and Governance. Social factor includes diversity and inclusions. Governance factors include stewardship initiatives such as shareholder relationships, periodic AGMs, clean financials, and robust steps to prevent fraud. Here we will only discuss the environmental factor. We will explore ‘sustainability’ in more depth in a future blog post. Sustainability involves reducing carbon emissions by minimising the use of carbon-emitting energies, such as fossil fuels, and increasing the use of clean, renewable energies, all while operating the business profitably and delivering sustainable returns to investors. It also means using cleaner, more renewable energies. The modern focus of the investors is now towards more sustainable investments. Sustainable investment means investors are willing to invest only in businesses that follow the best practices mentioned below. The sustainable business activities include – Sustainability is the step agreed by international organizations like UNFCCC (we will discuss them below) to achieve climate diplomacy and a cleaner environment. There are ‘ifs and buts’ though, we will discuss that as well. Climate Agreements and Energy Diplomacy Global energy politics intersect with climate diplomacy. The world is increasingly concerned about the environment, particularly following the industrial revolutions that have occurred across Europe, America, Japan, Singapore, China, Taiwan, and Russia. Agreements like the Paris Accord and COP summits push nations to reduce emissions, invest in renewables, and share technology that may save environmental damage. The most famous COP was COP21 in Paris (2015), which led to the Paris Agreement—a landmark deal to keep global temperature rise “well below 2°C.” The abovementioned sustainability is part of these agreements. The COP Summit, short form of ‘Conference of the Parties’, is the annual climate conference organised by the UNFCCC (United Nations Framework Convention on Climate Change). It’s where world leaders, scientists, activists, and negotiators gather to assess progress on climate goals and push forward global action. But climate commitments often clash with national interests. Especially the double standards of the developed nations are clearly visible. Let’s analyze it. Despite every country having its own selfish interests, modern technologies, robust processes, and political will are needed to mitigate pollution and global warming. Energy diplomacy necessitates compromises that developing nations may not be willing to make, and it also requires technology transfers, climate finance, and other measures that developed countries are unlikely to agree to. Politics behind the climate change and sustainability agreements As I mentioned above, the term sustainable development plays a crucial role in the investments. However, it has another side as well. Please have a look at the abovementioned countries and continent. All went through the Industrial Revolution. In fact, some of these countries have kept their core territories pollution-free but are extracting fossil fuels, minerals, and metals like Gold and silver in economically weaker countries in Africa, Asia, or in the deep oceans. Hardly anyone will point out this double standard. Economically stronger countries have already gone through industrial and economic development. When economically weaker countries seek to revolutionise their economies through industrialisation, stronger countries will pressure, penalise, or sanction them in the name of sustainable development. The main concerns are – Energy as a Weapon in Politics Energy isn’t just a commodity for the business, welfare and development—it also works as a weapon. Countries use energy access to reward allies and punish rivals. These tactics reveal the strategic value of energy. Control over supply chains, infrastructure, and trade routes becomes a form of soft and hard power. The Economics of Energy Politics Energy prices affect inflation, trade balances, and investment flows, resulting in effects on the GDP. When oil prices spike, transportation and manufacturing costs rise. It has a direct impact on the individuals. When gas prices fall, exporters lose revenue. OPEC’s production decisions influence global oil prices and economic stability. The bigger problem is that many energy-sourcing countries are either under sanctions or embroiled in prolonged or temporary wars, and are experiencing internal unrest due to various reasons. So the energy sourcing choices are limited. Russia, Venezuela, Iran, Yemen, Iraq, Syria, Libya, and many other oil-producing countries are under sanctions. There are restrictions on buying coal from Australia and other regions. There are very high restrictions on buying nuclear fuel. If a government tries to find a new source in the deep seas, it may come under sanctions. American oil is too costly due to transportation costs, production costs, and the time it takes to deliver. So, the sources become limited, such as Saudi Arabia, Kuwait, and Oman. Governments must balance affordability, sustainability, and competitiveness. Energy policy becomes economic policy. Countries should stand firmly on their independent policies irrespective of international pressures. Case Study: India’s Energy Diplomacy India offers a fascinating example of energy politics in action, largely unaffected by international pressures. India’s energy strategy blends pragmatism with ambition. It seeks to lead the Global South in climate negotiations while protecting its developmental needs. The Future of Global Energy Politics The next decade will completely transform our views about energy and power. The new trends may include: efficient. The energy world is becoming more connected—and more personalized—than ever before. Conclusion There are vast patterns to study in Global Energy politics. Wealthy nations are running behind in cleaner energy and sustainability, but their intentions and actions are suspicious. These countries have either snatched the world’s wealth or have transferred the work of energy production to other countries. But they had already gone through the development cycle and harmed the
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