Comparative analysis of decarbonising economy in Siberia and Scandinavia megaregions: Price, value and values of energy

Abstract

The climate change and deterioration of nature appear to be global problems, and the efficiency of solving them depends on the level of decarbonizing countries’ and regions’ economies. Siberia and Scandinavia are relevant megaregions with similar natural, climate, economic and energy characteristics, though demonstrat­ing, in many cases, different patterns of decarbonizing. The accomplished compara­tive analysis has confirmed that the differences have been conditioned by different approaches to the process of decarbonization. Low-carbon vector of Siberia suggests counterbalance of total GHG, owing to CO2 reduction and its removal with purpose to achieve carbon-neutrality by 2060. In Scandinavia reaching net-zero emission by 2050 suggests the compensation of only residual emission of GHG and only thanks to reliable removal and sequestration technologies. Differences depend on prices and values that refer to the energy sector as a prime emitter in both megaregions. In Siberia the focus is on the evolutionary, gradual energy transition from coal to natural gas, considering that fossil fuels are cheap, available, subsidized by state, and supported by the modernization activities of energy companies, which are led by principals of security, stability and profitability. Scandinavia megaregion seems to prefer the approach to electrifying economy with renewables. Such choice has been determined not only by the price-fall of renewables, but also by the growth of their value on behalf of long-term, innovative activities of energy companies, active role of the states with the purpose of reaching the common good.