With the war in Ukraine leading to fresh disruptions to the global commodity markets, the resulting supply shock is set to increase inflationary pressure yet further.
Brent crude oil prices have almost doubled since March 2021, when it was trading at between USD 60 and USD 70 a barrel, rising by around 40% since January 2022 alone (they had plummeted to less than USD 10 a barrel in April 2020). Natural gas prices (TTF) rose from EUR 18.7/MWh on 17 March 2021 to EUR 89/MWh on 23 February 2022; recent price volatility has seen it leap as high as EUR 227/MWh.
Governments worldwide have been trying to build resilience into their economies following the shock of COVID-19, with the energy transition under greater scrutiny. With a much greater weight now being attached to long-term energy security in the recovery equation, how governments realise their energy sustainability goals has just been given fresh impetus.