The geopolitical dimension of energy transitions is increasingly critical as nations vie for the resources and markets needed for sustainable energy. As such, it requires a deeper understanding of power dynamics and the way that these play out across multiple dimensions. Intermediate analysis reveals the intricate dance of energy security, economic interests, technological competition, and global drives for sustainability. For example, the US and China are engaged in a fierce struggle for leadership in renewable energy technology and batteries, with significant impacts on supply chains in countries far afield. This is a clear manifestation of how protecting national interest can quickly lead to unintended consequences for the world as a whole.
In more immediate terms, however, the political games played in parliaments, on world stages and at global summits have a tangible impact on everyday people. Trade wars disrupt global supply lines and heighten the cost of doing business, while security risks such as terrorism or civil unrest impact the price of daily goods.
In addition, the need to respond to health risks often leads to global shutdowns and mandates that impact economies and businesses. This is how the Ebola crisis led to a collapse in global production of medical equipment and the COVID-19 pandemic caused a spike in vaccine prices and an increase in the number of days that companies were forced to close their operations. Academic interpretation goes beyond simplistic notions of resource competition and power struggles to understand the broader context in which these unfold, demanding rigorous research and long-term perspectives.