W. 20 Policy Watch
NATO Highlights Renewables as Part of Future Energy Security
NATO is openly endorsing renewable energy as a key solution to the security of the alliance, despite the United States scepticism against shifting from gas and oil. This comes after a study by the NATO Energy Security Centre of Excellence released earlier this year advised the alliance to increase the use of renewables due to it being a more secure option to imported fossil fuels. The centre has stated that they do not speak for NATO as a whole, but that the proposition is backed by an official spokesperson. The diversification of energy sources will boost not only the alliances resilience but also reduce dependencies on other actors.
Due to the war in Iran, the risk of relying on imported fossil fuels have been heightened, and Europe, which has very limited oil reserves, are left exposed and vulnerable. The European Union has taken the step to speed up the usage of renewable energy as it is seen as the answer to energy independence. This change of view is not liked by President Trump and his administration because of their view on climate friendly alternatives.
From a military perspective, the future of energy supplies is changing. While diesel generators are powerful and reliable they are not environmental and the logistics of setting up in remote places are challenging. With renewables there’s been talk within NATO of them being more logistically and economically viable.
President Trumps sets two month deadline on EU trade deal
President Trump has set a two-month deadline for the European Union to enact their trade deal, or he is threatening to rise tariffs.
The news came after EU member states and negotiators failed to agree on terms for implementing the deal that was agreed on last summer between Trump and Ursula von der Leyen where the EU agreed to invest in American energy industries and remove tariffs on industrial goods in exchange to lower tariffs on European products.
The threat to raise tariffs, 25% on European automobiles, comes as the Trump administration is growing more frustrated with how slow the EU are with moving forward with implementing the deal. According to U.S Trade representative Greer, the US understands that the process is slow but that they are not patient anymore due to Europe not being compliant in the 9 months that has gone since the deal was made. By targeting the automobile sector Trump is looking to punish Europe in two ways, by pressuring the EU to move quicker on the agreement and to hurt Germany after the Chansellor stated that Trump had been humiliated in negotiations with Iran.
For members of the British-Swedish Chamber of Commerce these news can have a big impact depending on the outcome of the negotiations. Companies connected to renewables, defence and infrastructure could benefit from new investments and partnerships as Europe increases its focus on energy independence. At the same time, rising tensions between the US and EU risk creating uncertainties for businesses involved in international trade, especially trade within the manufacturing sector. Higher tariffs on European industries could negatively affect European supply chains and exports. Businesses may therefore need to adapt to challenging and changing economic and political conditions by strengthening resilience and diversifying markets.