Russia’s war in Ukraine has Europe bracing for a tough winter, but the costs are piling up higher in emerging nations as governments struggle to keep energy flowing to citizens hit by surging inflation.
Pakistan’s government is triggering rolling blackouts and boosting power bills because it can no longer secure enough fuel. Shops in Bangladesh are closing at 8 p.m. as part of energy austerity measures, while Mexico’s government has bolstered subsidies to cushion residential electricity costs.
The crunch comes at a particularly difficult time: The global shift to cleaner energy sources meant developed economies weren’t investing in efforts to boost fossil fuel production, while poorer nations were being pressed to adopt cleaner-burning natural gas. Now, with gas prices more than 150% higher since the Russian invasion in February, and wealthier nations able to pay more to ensure adequate supplies, emerging nations can’t compete.