Colossal investments and expenditures in regions such as the EU and Japan are keeping the energy sector intact despite the pressure that central banks are facing because of the sector.
Looking at the Bigger Picture:
- New EU plants need a projected $568 billion worth of investments over the next 30 years, Bloomberg reported citing the European Commission’s internal market chief Thierry Breton.This immense figure is needed in order to fulfil the EU’s targets regarding emission reductions and to cater to the surge in electricity demand, according to the official.
- The Chinese central bank is advised to take net zero carbon objectives into consideration while setting its monetary policies, Bloomberg reported, citing previous International Monetary Fund Deputy Manager Director Zhu Min. Such an action will help the country take into account the strategic significance associated with carbon neutrality as well as the financial opportunities and risks simultaneously.
- The European Central Bank inflation conjectures might have to be re-examined as the energy transition process – in a region with surplus savings and supply instability – might hold inflation rates at a high level for a longer time than expected, according to Bloomberg.
- Kazakhstan’s uranium output — used to generate nuclear power — is at risk as a result of political instability in the country, according to Reuters.
Through a Micro Lens:
- Japan’s power generation giant, JERA, will devote 69.2 billion yen ($597 million) to the development of three new projects all of which comprise ammonia-related technology — a potential energy source, Reuters reported. The corporation also added that the government’s green innovation fund is to grant 70 percent of total expenditures.