Cheaper fossil fuels will not hinder the transition to renewable resources - Zeme un valsts

Cheaper fossil fuels will not hinder the transition to renewable resources

(...) Regarding the impact of oil prices on the direction of a potentially greener economy, P. Strautiņš expresses the view that the price of this resource has long since ceased to be the most important factor that will determine the scale of its use in the future. According to him, in the EU on average, unless the oil price is extremely high, it accounts for less than half of the price of transport fuel because excise taxes are high. Recently, the share of exchange prices in the total retail price in Latvia has been around 35-40%. Speaking about mechanisms for phasing out fossil fuels, P. Strautiņš says that, at present, the growth in electric car sales is mainly driven by support for buyers, but in the future, the use of internal combustion engines in passenger cars will quite simply be banned. For example, in Great Britain, this is planned from 2030, while in China and Canada from 2035. Finland plans to do so by 2040. Canada has also set a usage deadline for previously sold internal combustion passenger cars, namely 2050. Meanwhile, for heavy goods vehicles, according to the “Luminor” expert, the replacement of fossil fuels will most likely take place using both electric batteries and hydrogen, depending on the mass of the vehicle.

Cheaper fossil fuels will not hinder the transition to renewable resources

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