Ideology and hypocritical morality
Europe’s moralizing approach to energy and raw materials has weakened its resilience. Ideology and hypocrisy are luxuries it can no longer afford.
Already during the Covid-19 crisis – and even more so now, amid war, protectionism and sanctions – the issue of economic supply has become obvious. Domestic sources in Europe, particularly for raw materials, were neither developed nor used. The (failed) guiding principle seemed to be: let others do the dirty work; we are good and clean.
However, Europe needs energy and raw materials.
The supposed magic of wind and solar power is a delusion. These sources are useful additions to the energy mix, but they are neither sufficient nor reliable.
For decades, nuclear energy was demonized. Only recently and reluctantly did the European Commission give its blessing to nuclear power, and even now several countries, including Germany, continue to exclude it.
After the supply of cheap gas from Russia was cut off, Europe became dependent on importing liquefied natural gas (LNG) – an expensive and not particularly efficient alternative. Much of this LNG comes from the United States, where it is produced from shale gas. Europe could do the same, but it has chosen the luxury of avoiding shale extraction. The fact that shale gas production can meet strict ecological standards has been conveniently ignored.
A similar problem exists with mining. Many minerals could be extracted in Europe, yet politicians and public opinion have chosen the comfort of misguided morality. The unspoken result: mining and fossil fuels are bad; let others do the dirty work.
Europe’s security challenges demand more attention and greater resilience in supply.
But politicians and public opinion are not the only ideological hypocrites. The financial sector has been worse, as firms therein should have known better. In a panic that financing nuclear or fossil energy might taint their reputations, financial institutions across Europe have refused to provide loans or even open accounts for such projects. The same applies to the mining industry, where financing is nearly impossible. Banks and funds have become dogmatically fixated on narrow environmental, social and governance (ESG) standards.
There is nothing wrong with ESG standards themselves – they are necessary. But the hypocrisy and quasi-religious ideology surrounding their application are luxuries Europe can no longer afford.
The European mining and energy sectors are being crushed between excessive regulation and a lack of financing.
Beyond economics, Europe’s security challenges demand more attention and greater resilience in supply. The continent cannot be self-sufficient in everything, nor does it need to be, but it must strengthen its resilience.
More by Prince Michael of Liechtenstein
- Are European elites malicious or oblivious?
- Moralism prevented pragmatic solutions for Syria
- Productivity and innovation: Europe’s wasted opportunity
Consider Germany’s plan to generate offshore wind power in the north and transmit it to the south. This approach is costly, inefficient and harmful to the landscape. Most importantly, it makes the system highly vulnerable to physical or cyberattacks. More decentralized, smaller nuclear power plants would be far more ecological, economical and resilient. An attack on the grid would then have only regional effects.
Europe has lost much ground in global competition – and so has its financial sector – but recovery is possible.
Mining, fossil fuels and nuclear energy have been consigned, along with the defense industry, to the “dirty” corner of society and the economy by moralizing attitudes. This is as frivolous as it is irresponsible.
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