Policy Alert #239 | October 25, 2021
Just as the Rising Powers are gearing up for a post-pandemic economic recovery, China, India and even Japan are finding themselves staring at a huge and unfolding energy crisis, mostly involving coal shortages. Given enormous Chinese demand for coal, authorities are taking extraordinary steps to intervene, ordering coal miners to spare no expense in boosting output. Chinese commentary went on the offensive regarding the country’s predicament, touting how well positioned it was to meet the challenge. China’s willingness to pay whatever it takes for energy supplies is bad news for the rest of Asia and Europe, which will face elevated gas and electricity prices in the winter as they compete with China for supply. On the other hand, some Indian officials sought to downplay the seriousness of the energy crisis as the domestic debate heated up about what went wrong. Further complicating the picture is mounting pressure on governments to accelerate the transition to cleaner energy as world leaders prepare for the 2021 United Nations Climate Change Conference in November.
Who’s blaming whom and what’s the prognosis for Rising Powers?
