Natural gas may compromise fossil fuel phase-out

Natural gas has been promoted as a clean energy source due to its lower greenhouse gas emissions compared to, for example, coal and oil. In addition, natural gas has the advantage of being a dispatchable energy source and certain systems are dependent on it due to lock-in effects, e.g. domestic heating. However, a complete transition to a decarbonised energy system requires a complete phase-out of fossil fuels. Continued support for natural gas can therefore lead to additional lock-ins and hamper climate change mitigation efforts.

Nº 85

1) Europe & North America

2) North America, Canada, British Columbia

some attempts made
past case
Region-1
Region-2
Region-3
Region-4
ongoing case
no attempts made

None

Natural gas may compromise fossil fuel phase-out

Natural gas has been promoted as a clean energy source due to its lower greenhouse gas emissions compared to, for example, coal and oil. In addition, natural gas has the advantage of being a dispatchable energy source and certain systems are dependent on it due to lock-in effects, e.g. domestic heating. However, a complete transition to a decarbonised energy system requires a complete phase-out of fossil fuels. Continued support for natural gas can therefore lead to additional lock-ins and hamper climate change mitigation efforts.

1) While the United States has made progress in shale gas production and successfully reduced its emissions, the impact on Europe has been the opposite. Competition in the fossil fuel market caused US coal export prices to fall significantly, making coal more affordable. As a result, Europe imported this affordable coal, allowing coal-fired power plants in the region to continue operating.

2) In British Columbia, despite the frequent use of ‘transition fuel’ and ‘climate solution’ discourses by local and national governments in relation to shale gas and LNG projects, the reality is quite different: there are significant policies in place that provide incentives for gas extraction projects in the region.

1) Gürsan, C., Gooyert, V. (2021). The systemic impact of a transition fuel: Does natural gas help or hinder the energy transition? Renewable and Sustainable Energy Reviews, 138, 1-21. https://doi.org/10.1016/j.rser.2020.110552.

2) Stephenson, E., Doukas, A., Shaw, K. (2012). “Greenwashing gas: Might a ‘transition fuel’ label legitimize carbon-intensive natural gas development?”. Energy Policy, 46, 452-459.

https://doi.org/10.1016/j.enpol.2012.04.010.

Gürsan, C., & de Gooyert, V. (2021). The systemic impact of a transition fuel: Does natural gas help or hinder the energy transition? Renewable and Sustainable Energy Reviews, 138, 110552. https://doi.org/10.1016/j.rser.2020.110552