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Energy Crisis Requires Short- and Long-term Response – UNCTAD

Governments must “mix urgency and strategy” in their response to energy price volatility to avoid “high-emission, expensive energy” in future, according to the United Nations Conference on Trade and Development (UNCTAD). The latest report from the UN’s Global Crisis Response Group (GCRG) on the global impacts of the war in Ukraine says developed countries should seek to manage energy demand via new technologies and behavioural changes, while developing countries will need to prioritise business access to energy to sustain their economies, but also support vulnerable populations. In parallel, governments should aim to attract investment to increasingly competitive renewable energy projects, also addressing supply chain bottlenecks and boosting resilience, to meet their 2030 sustainable development and climate commitments. The report notes that commodity prices are stabilising, but warns of increasing levels of acute food insecurity, further energy price volatility, stagflation risks and widening emerging markets sovereign bond spreads. It also calls for greater coordination between countries at forthcoming meetings of the UN General Assembly, IMF, World Bank and G20. “Climate finance in developing countries must be scaled up, through better carbon and sustainable debt markets and increased blended and multilateral finance”, the GCRG said.


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