Energy Shift
What is the Cost of Europe’s Energy Crisis?
What is the Cost of Europe’s Energy Crisis?
Europe is scrambling to cut its reliance on Russian fossil fuels.
As European gas prices soar eight times their 10-year average, countries are introducing policies to curb the impact of rising prices on households and businesses. These include everything from the cost of living subsidies to wholesale price regulation. Overall, funding for such initiatives has reached $276 billion as of August.
With the continent thrown into uncertainty, the above chart shows allocated funding by country in response to the energy crisis.
The Energy Crisis, In Numbers
Using data from Bruegel, the below table reflects spending on national policies, regulation, and subsidies in response to the energy crisis for select European countries between September 2021 and July 2022. All figures in U.S. dollars.
| Country | Allocated Funding | Percentage of GDP | Household Energy Spending, Average Percentage |
|---|---|---|---|
| 🇩🇪 Germany | $60.2B | 1.7% | 9.9% |
| 🇮🇹 Italy | $49.5B | 2.8% | 10.3% |
| 🇫🇷 France | $44.7B | 1.8% | 8.5% |
| 🇬🇧 U.K. | $37.9B | 1.4% | 11.3% |
| 🇪🇸 Spain | $27.3B | 2.3% | 8.9% |
| 🇦🇹 Austria | $9.1B | 2.3% | 8.9% |
| 🇵🇱 Poland | $7.6B | 1.3% | 12.9% |
| 🇬🇷 Greece | $6.8B | 3.7% | 9.9% |
| 🇳🇱 Netherlands | $6.2B | 0.7% | 8.6% |
| 🇨🇿 Czech Republic | $5.9B | 2.5% | 16.1% |
| 🇧🇪 Belgium | $4.1B | 0.8% | 8.2% |
| 🇷🇴 Romania | $3.8B | 1.6% | 12.5% |
| 🇱🇹 Lithuania | $2.0B | 3.6% | 10.0% |
| 🇸🇪 Sweden | $1.9B | 0.4% | 9.2% |
| 🇫🇮 Finland | $1.2B | 0.5% | 6.1% |
| 🇸🇰 Slovakia | $1.0B | 1.0% | 14.0% |
| 🇮🇪 Ireland | $1.0B | 0.2% | 9.2% |
| 🇧🇬 Bulgaria | $0.8B | 1.2% | 11.2% |
| 🇱🇺 Luxembourg | $0.8B | 1.1% | n/a |
| 🇭🇷 Croatia | $0.6B | 1.1% | 14.3% |
| 🇱🇻 Lativia | $0.5B | 1.4% | 11.6% |
| 🇩🇰 Denmark | $0.5B | 0.1% | 8.2% |
| 🇸🇮 Slovenia | $0.3B | 0.5% | 10.4% |
| 🇲🇹 Malta | $0.2B | 1.4% | n/a |
| 🇪🇪 Estonia | $0.2B | 0.8% | 10.9% |
| 🇨🇾 Cyprus | $0.1B | 0.7% | n/a |
Source: Bruegel, IMF. Euro and pound sterling exchange rates to U.S. dollar as of August 25, 2022.
Germany is spending over $60 billion to combat rising energy prices. Key measures include a $300 one-off energy allowance for workers, in addition to $147 million in funding for low-income families. Still, energy costs are forecasted to increase by an additional $500 this year for households.
In Italy, workers and pensioners will receive a $200 cost of living bonus. Additional measures, such as tax credits for industries with high energy usage were introduced, including a $800 million fund for the automotive sector.
With energy bills predicted to increase three-fold over the winter, households in the U.K. will receive a $477 subsidy in the winter to help cover electricity costs.
Meanwhile, many Eastern European countries—whose households spend a higher percentage of their income on energy costs— are spending more on the energy crisis as a percentage of GDP. Greece is spending the highest, at 3.7% of GDP.
Utility Bailouts
Energy crisis spending is also extending to massive utility bailouts.
Uniper, a German utility firm, received $15 billion in support, with the government acquiring a 30% stake in the company. It is one of the largest bailouts in the country’s history. Since the initial bailout, Uniper has requested an additional $4 billion in funding.
Not only that, Wien Energie, Austria’s largest energy company, received a €2 billion line of credit as electricity prices have skyrocketed.
Deepening Crisis
Is this the tip of the iceberg? To offset the impact of high gas prices, European ministers are discussing even more tools throughout September in response to a threatening energy crisis.
To reign in the impact of high gas prices on the price of power, European leaders are considering a price ceiling on Russian gas imports and temporary price caps on gas used for generating electricity, among others.
Price caps on renewables and nuclear were also suggested.
Given the depth of the situation, the chief executive of Shell said that the energy crisis in Europe would extend beyond this winter, if not for several years.
Energy Shift
Visualized: Global Coal Consumption by Region
For this graphic, Visual Capitalist has partnered with Range ETFs to explore world coal consumption in 2023 and find out who consumed the most coal.
World Coal Consumption by Region in 2023
Despite many nations transitioning away from fossil fuels, in 2023, world coal consumption reached a staggering 164 exajoules (EJ) of energy, a record high for any year.
For this graphic, Visual Capitalist has partnered with Range ETFs to explore the role coal plays in the global energy mix and determine which regions still consume large quantities of coal.
The Role of Coal in Global Energy
Coal is a significant player in the global energy mix, contributing 26% of the world’s energy in 2023, more than all non-fossil fuel sources combined. The only energy source that contributed more to the global energy mix was oil.
Here’s how that consumption breaks down by region:
| Region | Consumption (EJ) | Share % |
|---|---|---|
| China | 91.9 | 56.1% |
| Asia Pacific (excluding China) | 43.8 | 26.7% |
| Americas | 10.0 | 6.1% |
| Europe | 8.4 | 5.1% |
| CIS* | 5.5 | 3.4% |
| Africa | 4.1 | 2.5% |
| Middle East | 0.4 | 0.2% |
| Total | 164.0 | 100% |
Coal consumption has decreased in many regions. For example, both North America and Europe reduced their energy consumption from coal by 16% in 2023. However, a heavy reliance on coal in the Asia Pacific region has led to global coal consumption remaining essentially the same over the past 10 years.
In 2023, China increased its coal consumption from 88 EJ to nearly 92 EJ—totalling 56% of global coal consumption. This contributed significantly to Asia Pacific leading the world with a staggering 83% of global coal consumption.
The Importance of Coal
Easy access to existing infrastructure and reasonable prices have not only sustained global coal consumption over the last 10 years, but also paved the way for potential growth. Many developing nations are now expanding their coal consumption, presenting potential opportunities in the coal market.
For example, as per the Statistical Review of World Energy 2024, between 2022 and 2023, Bangladesh and Colombia saw double-digit percentage increases in year-over-year coal consumption: 41% and 53%, respectively.
Coal continues to play a critical role in the global energy mix, especially in the developing world, where its affordability makes it the current energy source of choice.
Learn more about the Range Global Coal Index ETF (COAL)
Energy Shift
Top Countries by Fossil Fuel Consumption in 2023
China and the U.S. account for nearly half of fossil fuel use.
Top Countries by Fossil Fuel Consumption in 2023
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
Fossil fuel consumption reached new record highs in 2023, driven by increased coal and oil use in China, despite the global boom in renewable energy.
Together, gas, oil, and coal accounted for 81.5% of the global energy mix last year, slightly down from 82% in 2022.
This graphic shows the top 12 countries by fossil fuel consumption in 2023. Data is from the Energy Institute, 2024 Statistical Review of World Energy, released in June 2024.
China and U.S. Account for Nearly Half of Global Fossil Fuel Use
China and the U.S. are responsible for almost half (47%) of global fossil fuel consumption.
| Country | Oil (Exajoules) | Natural Gas | Coal | Total |
|---|---|---|---|---|
| 🇨🇳 China | 33 | 15 | 92 | 140 |
| 🇺🇸 U.S. | 36 | 32 | 8 | 76 |
| 🇮🇳 India | 11 | 2 | 22 | 35 |
| 🇷🇺 Russia | 7 | 16 | 4 | 27 |
| 🇯🇵 Japan | 7 | 3 | 5 | 15 |
| 🇮🇷 Iran | 4 | 9 | 0 | 12 |
| 🇸🇦 Saudi Arabia | 7 | 4 | 0 | 12 |
| 🇰🇷 South Korea | 5 | 2 | 3 | 10 |
| 🇨🇦 Canada | 4 | 4 | 0 | 9 |
| 🇮🇩 Indonesia | 3 | 2 | 4 | 9 |
| 🇩🇪 Germany | 4 | 3 | 2 | 9 |
| 🇬🇧 United Kingdom | 3 | 2 | 0 | 5 |
| 🌍 Rest of the World | 72 | 50 | 24 | 146 |
In 2023, China consumed 140 exajoules of fossil fuels, equivalent to approximately 5.8 billion tonnes of hard coal. The U.S. followed with 76 exajoules, while India was third with 35 exajoules.
Crude oil consumption surpassed 100 million barrels per day for the first time, and coal demand exceeded the previous year’s record.
China remains the largest coal consumer, accounting for 56% of global consumption, a new record for the country. Additionally, in 2023, India’s coal consumption surpassed the combined total of Europe and North America for the first time.
If you like this graphic, be sure to check out ‘Visualizing Global Energy Production in 2023.’ This graphic illustrates the sources of energy used worldwide last year.
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