Energy Markets and Security in Germany and Wider Europe

Is a Stronger EU the Answer?

On January 29 AGI convened a roundtable discussion on “Energy Markets and Security in Germany and Wider Europe: Is a Stronger EU the Answer?” The panelists included Thane Gustafson, Professor of Political Science at Georgetown University, Doug Hengel, Senior Fellow at the German Marshall Fund, and Nikos Tsafos, Senior Fellow at the Center for Strategic and International Studies.

The aim of this event was to explore from a transatlantic perspective the evolution of EU energy policies and what impacts deeper European integration and a more unified EU foreign policy voice would have on European energy transition, security of supply, and trade with Russia.

Among the key points made during the discussion were:

• The importance of the EU’s single market for energy (in particular, the gas and power directives) not only in breaking up domestic monopolies but also in impacting how foreign suppliers could operate in the EU
• The EU’s Green Deal presents opportunities for transatlantic cooperation in hydrogen, carbon capture, battery production, and rare earths but also challenges on the trade policy side if the EU imposes carbon border adjustment measures
• Although the German “Energiewende” (energy transition) is often criticized as unrealistic, Germany is close to meeting its 2020 emissions targets, despite the difficult move away from coal the carbon intensity of electricity is the same in Germany and the United States, and while electricity prices are steeper in Germany in the U.S. per capita consumption is much higher