Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Norway open to gas price caps

Norway open to gas price caps

New group of leaders launched with Norwegian PM pushes for faster green transition in face of Putin’s ‘energy war.’

Norwegian Prime Minister Jonas Gahr Støre says his country is open to the previously unthinkable step of imposing price caps on gas to rein in Europe’s energy crisis.

As political leaders, activists and philanthropists piled on the pressure Wednesday to act to limit climate change at U.N. General Assembly events, Støre told  that “no solution should be off the table," when asked about a push by some European governments for gas price caps.

"No proposal, no idea" is off limits, he said. "We really have to work on this together."

Støre sees Europe’s energy crisis as the key plank of what he called “Putin’s war on Europe. They have a military campaign in Ukraine, and they have an energy war in Europe."

While many European governments support a price cap — including Italy, Poland Belgium, Greece and Sweden — some governments, like Germany, have concerns. With gas in short supply and high demand, some exporters may be tempted to send their gas to other parts of the world if the EU imposes a price cap.

Støre himself is skeptical that a price cap would achieve its aims, “because the danger of doing that is that you may limit supply,” instead of nudging consumption down, he said. He prefers to soften the pain of high energy prices through “redistribution mechanisms,” such as tax credits or welfare payments.

Spanish Prime Minister Pedro Sánchez told POLITICO earlier this week that other radical policy options need to be considered. Sánchez thinks governments need to learn from COVID-19 pandemic responses and coordinate better. “Why don't we centralize gas purchases, as we did with the vaccines?” he said.

Norway, a major fossil fuel exporter, is struggling to balance the effects of Russia’s war in Ukraine alongside the country’s commitment to go green.

“These very high energy prices in Europe are not good for Norway,” Støre said. “These are our allies and partners. We are not served by their economies being rocked,” he added.

While high prices drive up Norway’s tax revenues — oil and gas companies pay a 78 percent tax to the Norwegian treasury — they drive up domestic prices too. But Støre is undeterred when it comes to making Norway transition to green energy. “We need to scale up the energy transition,” he said.

Sánchez is backing Norway, telling fellow leaders not to get distracted by Russian President Vladimir Putin’s energy tactics: “We have a bigger crisis with climate change,” he told.

For now, that transition is unaffordable in many parts of the world. A new Global Leadership Council, co-chaired by Støre and Rockefeller Foundation President Rajiv Shah, aims to change that.

“Six billion people live in energy poverty, and as long as they are energy poor, that will be a major stumbling block for us moving forward on climate,” Støre said.

The council met for the first time Wednesday and is part of the Global Energy Alliance for People and Planet. Its members include World Bank President David Malpass, International Energy Agency boss Fatih Birol, the heads of development banks and Bank of America’s Anne Finucane.

Other groups in New York for the U.N. General Assembly are pushing to change the tone of climate debates, worried that climate action is increasingly becoming a victim of political polarization.

Hannah Jones, CEO of British Prince William's Earthshot Prize for environmental work, said this fear is a driving force behind the prince’s climate activism. “He felt really clearly that if we didn't bring urgent optimism into the conversation, we risk people shutting down on us, and not being able to move forward and not take action," Jones said.

The prince had planned to be in New York to announce the winners of the Earthshot Prize, but the trip was canceled due to the death of his grandmother, Queen Elizabeth II.


Fight over the future


The fraught nature of climate debates was on full display Tuesday.

Climate activist and former U.S. Vice President Al Gore tore into Malpass, demanding his replacement as World Bank president for what Gore described as a lack of climate action at the bank.

Speaking onstage in New York, Malpass repeatedly declined to say he agreed with the scientific consensus that the planet’s climate is changing dangerously. “I’m not a scientist,” Malpass said.

Non-state actors also launched a deluge of climate commitments Wednesday. Amazon and Water.org announced a partnership to provide access to safe water for 100 million people, while a coalition of large companies including Ikea and Unilever committed to taking their most polluting vehicles off the road, and transitioning toward zero-emissions vehicles by 2040.

Antha Williams, head of Bloomberg Philanthropies, which hosted the Earthshot Innovation Summit Wednesday, said the world needs action at all levels to have any hope of sticking to the Paris climate agreement. “We need multilateral collaboration between nation states now more than ever, but they alone are not going to get it done,” she said.

Jones sees the process of identifying the local solutions from Earthshot Prize winners as an important step to change on a bigger scale. "We are a global search engine. We scour the earth for incredible solutions with an eye to diversity and representation," Jones said.

The goal, she added, is “finding those solutions from the Global South by people that wouldn't be walking down Sand Hill Road [in Silicon Valley] and bumping into a venture capitalist.”

U.N. Secretary-General António Guterres will push national leaders to make further commitments at an informal leaders roundtable on climate action.

Støre offered fulsome praise to the climate efforts of U.S. President Joe Biden, including the recently passed Inflation Reduction Act. “I can only salute him,” Støre said.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Novak Djokovic Reveals Relentless Self-Doubt and Rejects Retirement in New Documentary
Brighton Thrash Aston Villa in Four-Goal Opening Half as Manchester City Trail Bournemouth
Ukraine's Ousted Defence Minister Calls for Wartime Presidential Election
Thieves Steal Antonello da Messina Renaissance Masterpieces From Sicilian Museum
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
×