The EU’s Poor Climate Policies Lead to Poor Results
November 15, 202 Fortunately, the European public is starting to demand a better path forward. A head of the traditional October summit of EU leaders, Germany’s leading business association, BDI, launched a stern warning that deindustrialization was no longer a risk but a reality . The association stated : “Today, this risk [of de-industrialisation] has become a reality in significant parts of the industry.” It is not hard to understand why German industry is struggling. Natural-gas prices in Europe are projected to be five times higher than in the United States in 2025. For energy-intensive industries, this makes it very difficult to compete . But as the BDI made clear, those sectors of German industry that are not as vulnerable to changes in energy prices are also doing poorly. One explanation is the fracking revolution in the U.S., which drove down energy prices. By some estimates , Europe has substantial reserves of recoverable shale gas, but it is hard to know for sure