Climate Change and Energy Security

Readings

  • Balaam, D. N. & B. Dillman. 2019. Introduction to International Political Economy (7th edition). New York: Routledge, Taylor & Francis Group. (Chapter 6)

  • Kandpal, V., Jaswal, A., Santibanez Gonzalez, E.D.R., Agarwal, N. 2024. The Economics of Sustainable Energy Transition and the Circular Economy. In Sustainable Energy Transition: Circular Economy and Sustainability. Cham: Springer

Introduction

  • Climate change and energy are core issues in IPE

  • IPE explores:

    • Environmental degradation and global governance.

    • Efforts to navigate climate change and prevent catastrophe

    • The political economy of energy transitions.

Key Questions

  • Can developing nations decarbonise without compromising growth?

  • What are the geopolitical implications of renewable energy dominance?

  • How can energy transitions be made more just and equitable?

Key Concepts

  • Sustainability:

    • Meeting today’s needs without compromising the future.

  • Tragedy of the Commons:

    • Shared resources are overexploited (e.g., atmosphere, oceans).

Defining Energy Security

  • Energy Security: The availability of reliable and affordable energy.

  • Dimensions include:

    • Supply security

    • Infrastructure resilience

    • Price stability

    • Access to clean energy

  • Threats include resource scarcity, political instability, and climate impacts

Oil & Gas Giants

  • Annual net income of selected oil and gas companies (in billion U.S. dollars):

    • ExxonMobil:

      • 2021: 23.0

      • 2022: 55.7

      • 2023: 36.0

    • Chevron:

      • 2021: 15.6

      • 2022: 35.5

      • 2023: 21.4

    • TotalEnergies:

      • 2021: 19.3

      • 2022: 28.3

      • 2023: 21.4

    • CC+

      • 2021: 20.5

      • 2022: 39.9

      • 2023: 16.0

The Environmental Cost of Energy

  • Fossil fuel combustion produces CO_2, methane, and other GHGs.

  • Effects include

    • Rising global temperatures.

    • Extreme weather events (floods, droughts, storms, etc.).

    • Sea level rise and ecosystem disruption.

    • Water and air pollution

Early Environmental Disasters

  • 1969 Santa Barbara (California) oil spill

    • largest oil spill in US waters at the time

  • The Seveso Disaster (1976), Italy

    • chemical plant in Seveso released a cloud of toxic dioxin

    • severe health problems, including cancer, reproductive and developmental issues

  • Chernobyl Nuclear Disaster (1986)

    • nuclear accident at the Chernobyl power plant in Ukraine released large amounts of radioactive material, contaminating a vast area.

  • The Exxon Valdez Oil Spill (1989)

    • oil tanker Exxon Valdez struck a reef and spilled approximately 11 million gallons of crude oil

    • devastating effects on the local environment

Key Actors in Global Environmental Governance

  • Main actors involved (since the 1960s):

    • States, International Organisations (IOs), NGOs, Businesses & Oil Companies

  • Key multilateral and institutional mechanisms

    • United Nations Environment Programme (UNEP), Intergovernmental Panel on Climate Change (IPCC), The Global Environment Facility (GEF)

International Environmental Agreements

  • Key accords:

    • 1992 Rio Earth Summit

    • 1997 Kyoto Protocol

    • 2015 Paris Agreement

  • Issues:

    • Voluntary commitments.

    • Weak enforcement. (E.g. withdrawal of US from Paris Agreement)

    • North-South equity gap.

The Role of The State in Climate and Energy Policy

  • State responsibilities:

    • Enforce environmental standards and regulate emissions.

    • Support innovation and alternative energy through subsidies and policy

  • Challenges faced by states:

    • Aligning domestic development goals with global climate commitments.

    • Coordinating across borders in the face of transboundary environmental risks.

    • Balancing political freedom with ecological limits.

Global Energy Use and Dependency

  • Industrialisation and modernisation

    • Has depended heavily on fossil fuels (coal, oil, natural gas).

  • Top energy consumers:

    • U.S., China, EU, India.

  • Developing countries face energy poverty despite rising demand.

Fossil Fuels and Geopolitics

  • Fossil fuels are central to state power, conflict, and diplomacy

  • Oil remains a geostrategic commodity

  • Control over oil and gas shapes

    • Foreign policy decisions.

    • Strategic alliances.

    • Global market volatility (e.g., OPEC's influence).

  • Energy security drives military interventions and foreign policy

    • Example, 1990 Iraq-Kuwait war; 2003 US invasion of Iraq; Russia’s weaponization of oil and gas

Energy Transition and Renewables

  • Renewables like solar, wind, geothermal, and hydro offer cleaner, sustainable energy alternatives

  • Benefits:

    • No emissions during use.

    • Energy independence

    • Long-term cost competitiveness.

  • Challenges:

    • high initial costs

    • Storage technology and grid integration.

    • Political resistance from fossil fuel lobbies

Climate Change and Energy Security: Global North vs Global South

  • Historical responsibility:

    • North has emitted the most—largely due to centuries of fossil-fueled industrialisation

  • The Global South, despite contributing minimal emissions, faces the most severe consequences of climate change

  • South demands:

    • Climate justice—acknowledging unequal burdens

    • Technology transfer—access to green technologies

    • Financial aid for adaptation and mitigation

Africa’s Energy Dilemma

  • Africa faces:

    • Low energy access

    • Rising demand

    • Pressure to avoid fossil fuel development

  • Key dilemma:

    • Right to develop vs. climate responsibility.

    • International support essential for green development pathways.

Key Takeaways

  • Climate change is a global IPE issue, not just an environmental one.

  • Energy systems must transition rapidly to avoid catastrophe.

  • Global cooperation and equity are essential for progress.