The old saying goes “it takes money to make money”, but it also takes energy to create energy. By effectively assigning an expiration date to an entire energy source it creates artificial imbalances in supply, demand, and cost in order to achieve a cost effective transition to cleaner energy sources.
Traditional energy; coal, petroleum, natural gas has been effectively subsidized for generations. When adjusting for inflation Petroleum products actually get cheaper over time. The original fixed costs of capital, energy, and carbon that went into developing that resource have had a longer opportunity to dillute these costs across a greater asset base.By transitioning completely away from fossil fuels we are effectively throwing away the millions of dollars, labor hours, and emissions that were generated in order to build pipelines, tanks, railways, and other infrastructure to more cleanly manufacture and transport traditional, non-renewable energy sources. Additionally be creating an expiration date on the fossil fuel industry we are seeing dramatic price increases that are making a transition to renewables potentially cost prohibitive. Until green energy has an opportunity to become more efficient and advanced, the lifecycle carbon intensity of these new technologies may not be as effective as perhaps a later transition may prove to be. Perhaps a slower transition towards renewables and a renewed focus on carbon capture technologies, may in fact prove to be a more effective long term and sustainable solution to combat a climate crisis.