“We might not have seen the worst of it yet — this is affecting the entire world,” said Birol.<\/p>\n
The IEA<\/a> is an international agency spanning 31 member countries and eight association countries – of which South Africa is one. The IEA seeks to help coordinate a collective response to major disruptions in the supply of oil and analyse other trends in the international energy sphere.<\/p>\n The agency said that the pressure on energy supply chains from Covid-19-related lockdowns had been compounded by Russia’s invasion of Ukraine, with supply disruptions and soaring prices affecting a wide range of critical commodities.<\/p>\n South African consumers currently face record-high fuel prices<\/a> of R26.74 a litre for 95 petrol (inland) and R25.53 for 0.005% wholesale diesel.<\/p>\n Not only does the pressure on global supply chains affect international fuel prices, but the turmoil undermines the pace of clean energy transitions, said the IEA.<\/p>\n The current energy crisis hinders the production of EVs or the deployment of renewables, calling for quick action by governments to counter these challenges.<\/p>\n \u201cTo durably address the challenges we\u2019re facing from today\u2019s global energy crisis, we need an immediate and massive expansion of clean energy technologies to build a resilient and affordable energy system,\u201d Birol said.<\/p>\n \u201cEstablishing secure and sustainable supply chains for these technologies is essential.”<\/p>\n The IEA recommended that there be increased investment in research, development and demonstration to spawn technologies and manufacturing processes that rely on smaller quantities of critical minerals or on a more diversified mix.<\/p>\n South Africa has taken steps to transition away from coal, with President Cyril Ramaphosa writing in the Presidental Climate Commission Review that new climate change laws are to be introduced.<\/p>\n “Our Climate Change Bill, which is currently being considered by Parliament, will provide the necessary legal basis for us to meet our ambitious climate commitments,” said Ramaphosa.<\/p>\n The IEA added that it is necessary to ensure that there is an appropriately trained and skilled workforce to work along clean energy technology supply chains.<\/p>\n Ramaphosa recently noted that the government would consult with coal miners who might lose their job due to the transition and ensure that support for them is provided<\/p>\n International fuel price cap<\/strong><\/p>\n At the recent G-7 summit in which President Cyril Ramaphosa participated, major economic leaders explored the proposal to cap the price of Russian oil exports, said Bloomberg<\/a>.<\/p>\n The price cap could likely prevent another global price spike to around $140 per barrel.<\/p>\n
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