A recent article in Oil Price highlighted the hypocrisy of the global green energy transition. Despite pontification from developed, western nations, developing nations around the world are struggling to fund their green transition. According to the Financial Times, about 81 percent of investment in renewable technologies is financed by the private sector in high-income countries, compared to only 14 percent in developing countries. Ironically, the high-income countries financing a transition away from traditional energy became the wealthy, developed nations we know today through the emergence of fossil fuels during the industrial revolution.
It seems as though wealthy nations are ignoring how exactly their societies were able to grow and prosper, heaping expectations of a green transition on countries not positioned to finance one. That is not to say that transitioning to green energy is wrong, but solely focusing on technologies such as solar or wind is not the best immediate strategy. Ignoring cleaner fuels, such as natural gas, that the west has in abundance is also a short-sighted strategy.
Instead, the west should recognize this funding gap in developing nations and fill the void with cleaner fuels. Exporting natural gas, specifically liquid natural gas, to countries across the globe will help drive down emissions from coal and biomass usage, while also facilitating economic growth. As the U.S. has increased LNG exports since the beginning of the war in Ukraine, the nation is naturally positioned to help developing nations in their energy transitions.