Adding fuel to the fire: the war in Ukraine is making energy (and everything) even more expensive, but it was already going badly
The far-reaching effects of Russia’s invasion of Ukraine continue to expose our reliance on fossil fuels, while underlining the unpreparedness of infrastructure to tackle long-standing issues.
War isn’t cheap for a variety of reasons (and in different ways), but it can also be very profitable for those who have their money in the right places.
A pandemic, too, can be very profitable- just ask all the new billionaires, as well as all the pre-existing ones that increased their wealth while the rest of the world struggled along. The Churchillian words ‘never let a good crisis go to waste’ ring true.
And so the war in Ukraine will be lucrative for the fossil fuel industry, whose profits were already rising before any rounds were fired. While, again, the poorest will suffer and be forced to pay for it, in whatever currency that price converts itself.
And then there’s us, and energy prices. But that’s not all, as the supply of raw materials will be squeezed and inevitably drive up prices.
In Britain, ‘Russia’s war on Ukraine will cost British households £1,259 each this year, analysts claim.’ And that’s on top of the existing cost of living crisis we’ve been talking about for months now.
Just an excuse?
There is, of course, the chance that many of the already-present issues in the economy will be blamed on the war. The pandemic’s slowing of economic growth dovetailed with the self-inflicted damage of leaving the single market, providing a perfect scapegoat that distracted from the difficulties of Brexit.
Similarly, this week, Martin Lewis (moneysavingexpert.com) warned against a ‘deliberate narrative shift’ positioning the war as the main factor in the cost of living crisis, distracting from existing conditions. Inflation was already on the rise, and bills were already going through the roof; putting the economy back on track after Covid, Brexit, and global supply chain issues, was not going well to begin with.
With that said, there’s no question the war will make things tougher.
However, none of the (we hope) short-term difficulties should distract from the plan, or rather, ‘intent’, to move away from fossil fuels as soon as possible.
If anything, this crisis should provide an even greater impetus to move on, to innovate and invest in cleaner, more ethical solutions.
Not done with us yet
As Western governments attempt to do away with Russian imports, the fossil fuel industry sees an opportunity to increase production, using the extra leverage afforded them as the crisis drags on; ‘many (fossil fuel companies) are using soaring prices and the fear of fuel shortages to cement their position with governments,’ which could set back attempts to achieve net zero targets and abate the effects of climate change.
While in the short-term it may seem pragmatic to increase our own production and storage of fossil fuels, we cannot shelve plans to properly build a sustainable infrastructure.
Our houses are not fit for purpose
Building houses has been a priority for the government for some time now, but making those houses energy efficient has not;
‘The technology needed to build zero carbon homes is already widely available, and in widespread use in other countries. It comprises heat pumps, solar panels, high-grade materials such as thermal glazing, and high-standard insulation.’
Instead, Britain and its poorest people continue to suffer the effects of living in old, poorly insulated housing, while developers continue to prioritise profits over quality. They are letting the same problems carry over into the next generation of homeownership.
And while now it may seem fair to ask households to turn the thermostat down, we can’t forget what led us here in the first place.
We can point the finger at a variety of issues but, if something as simple as ensuring better insulation in new buildings cannot be done, all the rest seems very convenient.
The work of our Green Doctor service will continue to be vital, especially as the effects of the cost of living crisis continue.
As we try to help as many people affected by fuel poverty as possible, we hope that our government and businesses will work together to ensure we do not keep repeating the same mistakes.
Matthew Thomas