Is cheap oil killing the planet?

Glada Lahn is Senior Research Fellow in the Energy, Environment & Resources Department at Chatham House in London. She focuses on energy and water governance and investment issues and economic sustainability in oil exporting countries. The opinions expressed in this commentary are her own.

The halving of world oil prices since June 2014 has generally been reported as a bright spell for oil-importing countries, with various projections of higher GDP growth as a result. But for the environment — and therefore society’s longer-term well-being — the forecast is murkier.

Burning oil already contributes to about one fifth of greenhouse gases causing climate change, according to data published in a report by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency, while oil extraction has local environmental impacts such as water and air pollution.

If governments want to promote healthy societies and livelihoods, they need to enforce regulation over air-quality, buildings efficiency and environmental protection.

Incorporating the real costs of health, carbon and resource degradation into fuel pricing is essential. This will not only provide a buffer against oil price volatility, but also enable clean energy and efficiency to prosper.

CNN