Capgemini – WEMO Report, 2023

The 2023 report by Capgemini, titled "WEMO Report", begins by highlighting the major event of 2022, which was Russia's invasion of Ukraine. This invasion led to a significant increase in gas and electricity prices in Europe, prompting measures to strengthen security of supply and energy sovereignty. Despite advancements in carbon-free electricity production technologies, greenhouse gas emissions continued to rise, leading to one of the hottest summers on record in 2023. The report focuses on the issue of energy sovereignty and the increasing dependence of the West on China, particularly in the context of the energy transition. It emphasizes the need to strengthen regulations to reduce reliance on fossil fuels, while also acknowledging that the speed of implementing these regulations depends on their costs and acceptability. The report suggests that the targets of limiting global temperature increase to 1.5 degrees Celsius by 2030 may not be achieved. Therefore, adaptation measures need to be quickly implemented, requiring the involvement of various stakeholders such as governments, infrastructure managers, businesses, and citizens. The report also highlights the importance of consumer behavior and financing in the success of the energy transition. The report then discusses Europe's efforts to free itself from its dependence on Russian gas. Prior to the invasion of Ukraine, Russian gas accounted for 40% of European gas supplies. However, in response to the invasion, the European Union imposed sanctions on Russia, reducing gas flows to Europe. The report mentions the sabotage of the North Stream pipelines in 2022 further reducing these flows. As a result, Russian gas now represents only around 7% of the Union's supplies. To diversify gas supply sources, Europe has increased imports from traditional suppliers like Norway, Algeria, and the United Kingdom. Additionally, there has been an increase in imports of liquefied natural gas (LNG) from countries like the United States and Qatar. Despite the reduction in Russian piped gas, the EU has increased its imports of Russian LNG. In the first seven months of 2023, EU countries imported 40% more Russian LNG compared to the same period in 2021. The report concludes by highlighting the EU's goal to end its reliance on Russian fossil fuels by 2027, including piped gas or LNG. However, the increasing import of Russian LNG raises concerns regarding achieving this aim.