## Editor letter — December 2022

## Source details

**Canonical URL:** [Editor letter — December 2022](https://www.imf.org/-/media/files/publications/fandd/article/2022/december/zh/editor-letter-dec22.pdf)

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- [Markdown version](/-/media/files/publications/fandd/article/2022/december/zh/editor-letter-dec22.pdf.md)
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### Editorial summary
- Context: Since Russia’s invasion of Ukraine, energy supply has been threatened and energy prices have risen, shifting countries’ priorities from solely decarbonization toward securing affordable, reliable energy.
- Central editorial argument: The perceived trade-off between energy security and climate action is a false dichotomy; the current crisis strengthens the case for increased investment in clean energy to reduce dependence on oil and natural gas and to improve energy security.
- Long-term position: Energy security ultimately depends on a broad portfolio of clean-energy technologies including solar, wind, nuclear, “green” hydrogen, electric vehicles, and carbon capture.

### Perspectives from contributors
- Fatih Birol (International Energy Agency):
  - Warns against using the current energy crisis as an excuse to increase reliance on fossil fuels.
  - Argues that the crisis provides more reason to scale up clean-energy investments to reduce oil and gas import dependence.
- Daniel Yergin:
  - Cautions that the energy transition requires careful planning.
  - Notes that if the transition imposes economic losses, it can lose public support, especially in developing economies.
  - Observes that “proposition often matters more than analysis.”
- Andrea Pescatori and Martin Stuermer (IMF):
  - Explain structural differences between oil markets and natural gas markets and the implications for Europe’s present supply challenges.
- Jeromin Zettelmeyer (Bruegel):
  - Urges EU countries to strike a “major bargain” to jointly reduce energy demand, increase supply, keep the internal energy market open, and compensate vulnerable consumers.
- Ricardo Hausmann (Harvard University):
  - Argues that for emerging market and developing economies, the clean-energy transition offers opportunities for economic growth.
  - Posits that investment in green technologies can create value and jobs, enabling these countries to contribute more to global decarbonization.

### Policy implications and recommendations
- Immediate policy trade-offs:
  - Do not revert to increased fossil-fuel reliance as a short-term fix for energy security.
  - Balance short-term needs for affordable, reliable energy with long-term climate objectives.
- Strategic actions advocated:
  - Scale up investments in clean-energy technologies rapidly to enhance both energy security and climate goals.
  - For Europe: coordinate demand reduction, diversify and increase supply, maintain open internal markets, and provide targeted compensation to vulnerable households.
  - For emerging markets and developing economies: pursue green investments that simultaneously support growth and job creation.
- Technology portfolio:
  - Maintain and expand a diverse set of clean-energy technologies, explicitly including solar, wind, nuclear, “green” hydrogen, electric vehicles, and carbon capture, as part of long-term energy-security strategy.

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_Source: https://www.imf.org/-/media/files/publications/fandd/article/2022/december/zh/editor-letter-dec22.pdf_