Acceleration of Europe's Green Energy Transition Amid Ukraine Crisis

Germany Highly Dependent on Russia "100% Renewable Energy by 2035"

Olaf Scholz, German Chancellor
[Photo by Reuters]

[Asia Economy Reporter Cho Hyun-ui] Russia's invasion of Ukraine is expected to promote the transition to eco-friendly energy in the European economy, which is highly dependent on Russian energy, in the long term.

The Wall Street Journal (WSJ) reported on the 1st (local time) that "the German government announced plans yesterday to accelerate wind and solar projects to reduce energy dependence on Russia."

This is a follow-up measure after Germany, which is highly dependent on Russian natural gas, decided on February 22 to suspend the Nord Stream 2 gas pipeline project connecting the two countries as a strong sanction card against Russia.

Germany currently imports more than half of its gas demand from Russia, which is over 25% higher than the European average (40%).

The German government expects that 80% of its energy will come from renewable sources by 2030, and 100% by 2035 through this initiative.

An oil expert said, "Russian President Vladimir Putin will radically accelerate the end of fossil fuels," adding, "Europe, pressured by Russia's energy tactics, will act first. Other countries will follow suit with similar measures."

The financial market is already reflecting these potential changes. The iShares Global Clean Energy ETF (ICLN), a representative eco-friendly energy ETF listed in the United States, rose 15% compared to February 23. This was due to the stock price of Danish wind turbine manufacturer Vestas Wind Systems surging more than 30% in the European market. Danish wind company Orsted also rose more than 20%.

WSJ stated, "This trend is not limited to European eco-friendly energy companies," adding, "The stock price of U.S. solar company First Solar also rose nearly 20% during the same period."

This content was produced with the assistance of AI translation services.