Energy price surge crimps Apac transition spending

Increased state spending on fossil fuel subsidies has narrowed the scope for investment in renewables

Rising energy prices in the wake of Russia’s invasion of Ukraine have set back the transition in Asia-Pacific as governments have been forced to ramp up spending on subsidising fossil fuels, narrowing the scope for investment in renewables, analysts told the Asian Development Bank’s Asia Clean Energy Forum this week. The war in Ukraine has dealt a major shock to energy markets and disrupted production and trade. Brent is up by more than one-fifth since the conflict began in late February, while Asian spot LNG prices are approaching the $40/mn Btu mark compared with $24/mn Btu one week before the invasion. “The ongoing Ukraine crisis has had a great impact on the energy transition. This has b