Daily Management Review

IMF sees no need to curtail energy transition because of crisis


The energy crisis has put the world before the choice between energy security and the green transition in the energy sector, say analysts of the International Monetary Fund (IMF) in the Global Financial Stability Report.

The expansion of renewable energy sources is hampered not only by fossil fuel subsidies, but also by rising prices of the necessary metals. 

However, the IMF believes that countries can reduce dependence on coal, oil and gas with the help of subsidies for renewable energy, state investments in green infrastructure and targeted compensations to individual victims of the transition to clean energy.

IMF analysts stated that the crisis around Ukraine and high energy prices have put the world in a dilemma: continue the green transition, despite the aggravation of problems in the energy sector due to rising energy prices and large-scale market changes due to the discussed in Europe and the U.S. sanctions on oil and gas supplies from Russia, or slow it down, strengthening energy security, with unpredictable climate risks in the long term. 

The problem is exacerbated by rising prices and widely used metals, many of which are used to produce and sustain renewables.

source: imf.org