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#Energy & Sustainability

Securing Europe’s Net Zero Path with Flexible LNG

  • September 25, 2024
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The new CERRE report “Securing Europe’s Net Zero Path with Flexible LNG”, authored by CERRE Research Fellow Chi Kong Chyong (Oxford Institute for Energy Studies), explores the strategies Europe can employ to ensure energy security while achieving its decarbonisation goals.

Europe’s path to net zero by 2050 requires a balanced approach that includes flexible (vs. long-term) LNG contracts, robust market integration, credible climate commitments, and strengthened transatlantic cooperation on energy security.

The 2021-2023 energy crisis, which cost the EU, UK, and Norway over €650 billion in shielding consumers from soaring prices, demonstrated the macroeconomic toll of energy crunch scenarios. Countermeasures increased inflation and partly undermined decarbonisation efforts, as the deviation of LNG deliveries to Europe drove up coal consumption in other regions.

The report’s energy system modelling highlights the economic value of flexible LNG contracts that are aligned with the Paris Agreement’s 1.5°C target and that can help mitigate price spikes. US LNG, which has replaced a great amount of Russian pipeline gas deliveries to Europe during the crisis, emerges as a critical transitional fuel.

The author concludes that the imperative of addressing methane emissions and implementing comprehensive GHG pricing across the import chain could position the EU as a de facto “climate club,” driving global standards and sending strong long-term signals to investors.

Author(s)
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Kong Chyong
Kong Chyong
Research Fellow
and Oxford Institute for Energy Studies

Dr. Kong Chyong is an applied energy economist and policy analyst with a strong background and more than fifteen years of experience in applications of economics and operational research methods to energy and climate policy questions. Kong’s research interests include economics and geopolitics of Russian natural gas exports, with a focus on Russo-Ukrainian bilateral relations and impacts on Europe and global gas markets. He also works on large-scale modelling of power markets, with a focus on low-carbon generation sources and integration of renewables.

Currently, Kong is a Senior Research Fellow in Energy System Economics and Modelling at the Oxford Institute for Energy Studies. Before this, he was Senior Research Scholar with the Center on Global Energy Policy at Columbia University. Prior to joining Columbia University, Kong was a research associate with the Energy Policy Research Group (EPRG) based at the Cambridge Judge Business School, University of Cambridge. Kong holds a PhD in Energy Economics and Policy (2011) and an MPhil in Technology Policy (2007) from the University of Cambridge. His PhD topic concerned Russia’s strategic natural gas export policy and Gazprom’s pipeline investment strategy.

Prior to his studies at Cambridge University, Kong was a researcher at the at the National Academy of Sciences in Ukraine.

Dr. Kong Chyong is an applied energy economist and policy analyst with a strong background and more than fifteen years of experience in applications of economics and operational research methods to energy and climate policy questions. Kong’s research interests include economics and geopolitics of Russian natural gas exports, with a focus on Russo-Ukrainian bilateral relations and impacts on Europe and global gas markets. He also works on large-scale modelling of power markets, with a focus on low-carbon generation sources and integration of renewables.

Currently, Kong is a Senior Research Fellow in Energy System Economics and Modelling at the Oxford Institute for Energy Studies. Before this, he was Senior Research Scholar with the Center on Global Energy Policy at Columbia University. Prior to joining Columbia University, Kong was a research associate with the Energy Policy Research Group (EPRG) based at the Cambridge Judge Business School, University of Cambridge. Kong holds a PhD in Energy Economics and Policy (2011) and an MPhil in Technology Policy (2007) from the University of Cambridge. His PhD topic concerned Russia’s strategic natural gas export policy and Gazprom’s pipeline investment strategy.

Prior to his studies at Cambridge University, Kong was a researcher at the at the National Academy of Sciences in Ukraine.

Muntasir Shahabuddin
Muntasir Shahabuddin
Worcester Polytechnic Institute

Muntasir Shahabuddin is a doctoral student in chemical engineering at Worcester Polytechnic Institute, with professional and research experience in grid-scale electrochemical energy storage, process electrification, lithium-ion battery manufacture, and chemical plant economics. His current work straddles process electrification and fossil fuel management through the study of biofuel production and energy politics.

Muntasir Shahabuddin is a doctoral student in chemical engineering at Worcester Polytechnic Institute, with professional and research experience in grid-scale electrochemical energy storage, process electrification, lithium-ion battery manufacture, and chemical plant economics. His current work straddles process electrification and fossil fuel management through the study of biofuel production and energy politics.

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