Although the world has moved past the worst of the pandemic, and the conflict in Ukraine continues to reverberate, concerns about globalization persist among staff, political leaders, and economists. The war has underscored a slowdown in global interconnectedness and the push for a new energy order that reshapes how nations link their infrastructures. Yet environmental pressures remain. With production slowdowns and price surges, recessionary forces and inflation loom, a difficult birth that many hope will not end in heartbreak.
Europe cannot rely on Russian gas, American technology, Arab oil, or Asian labor and devices alone. Oil producers fear a loss of geopolitical influence before the energy transition completes, while China resists dependence on Western markets or inexpensive labor. De-globalization pushes regions toward autarky in production, trade, defense spending, and energy strategies. The drive to cut carbon emissions has restructured energy relations, and the European conflict highlights the urgency of energy security without sacrificing climate ambitions.
Across Europe and beyond, demand for fossil generation wanes as solar and wind expand, with storage and future technologies like hydrogen batteries entering the mix. The global economy now uses less energy per unit of GDP. Simultaneously, Russia and OPEC have disciplined output to stabilize prices. Against high prices in Europe and the United States, China, India, and other nations have increased coal output again, attracted by its lower immediate cost despite environmental targets being challenged.
Analysts note that neoliberal globalization has withered under the pressure of COVID-19. The pandemic exposed social vulnerabilities, from precarious employment to marginalization, underscoring the need for stronger public services. Fossil energy producers and geopolitical tensions have driven a shift toward regional approaches, with policy divisions reshaping the global economy. After Brexit, the COVID outbreak, political shifts, and the conflict in Ukraine, efforts to revive economic activity have leaned on green initiatives and public investment. The European Union has prioritized energy security, migration and asylum systems, the rule of law, and defense and foreign policy, while transparency and sanctions became tools for reinforcing unity—though challenges persisted in some member states. In regional terms, partners like Morocco and Algeria face choices about their continued role within the EU framework.
Persistent energy market failures, with prices rising even as demand softens, call for greater intervention by governments and supra-national organizations to protect energy and food security and to mitigate climate risks. Building the necessary infrastructure for the energy transition, including securing the supply of rare earth materials used in modern electronics and weapons, is not something the private sector can shoulder alone. It is not feasible to ship large volumes of gas across Europe without coordinated planning. France has signaled openness to reviving the Midcat gas pipeline as a conduit for future hydrogen and interconnections, signaling an era of cross-border energy collaboration. State actors and supra-national bodies are called upon to shape a new energy order on an unprecedented scale.
Globalization is being reshaped by energy dynamics, yet it also motivates the formation of stronger regional blocs that aim for enhanced strategic autonomy. The evolving energy landscape demands a more resilient, cooperative approach to energy security and climate responsibility, with governments playing a central coordinating role and regional frameworks increasingly influencing policy direction and investment.