Energy = security = sovereignty = prosperity = sustainability = resilience
…and resilience depends on supply chains and logistics
(Thanks to Karl Wright for edits and suggestions)

At the recent Energy Security Hub 2026, organized by BMW Foundation on the fringes of the Munich Security Conference, I escaped the ‘climate bubble’ and entered the ‘energy security huddle’.
The atmosphere this year was politer than last. This time around, politicians sugar-coated their speeches. But the call was loud and clear. Europe’s energy security is at stake.
On our ability to secure an abundant supply of affordable energy hangs the future of European industry, AI and defense. Only if we build European capabilities in all these areas, and more, will Europe remain investable, prosperous, sustainable, resilient and sovereign.
It was refreshing to hear senior policymakers discuss these issues in Munich. What I did not hear in the resilience discussion was a rigorous analysis of the role and significance of physical climate risk.
Floods, extreme heat and storms are already affecting energy assets and the supporting infrastructure and operations we rely on. Energy security is not only about supply and generation, but also about whether the supply chains and logistics for key components, including transformers, cables, copper, steel and critical raw materials, hold up under increasing weather disruption.
Yes, this conference was focused on Europe. But many of the findings relate to markets around the world. Rather than stacking up the problems, I’ve tried to phrase my observations as solutions and bring in the Life-Links relevance of climate, resilient supply chains and logistics. Note: quotes have been abridged for clarity.
Safeguard Europe from unfair competition because of subsidized goods from outside Europe
Do this across steel, chemicals, automotive and other industry segments. Europe once dominated industries such as shipbuilding. The same dynamics we now see in the energy sector reduced us to a 6% share of world shipbuilding capacity. Do we really want to reproduce this outcome in the sectors of tomorrow?-
“This is a structural crisis we now have, and this is more a question of weeks and months rather than years. Electrical steel is a high-end niche product that you need for transformers, so no energy transition can happen without this steel. We are the last ones in Europe with no safeguards at all from unfair competition. Asian producers know that, so they sell their steel below production prices into Europe, doubled their exports within the last month. We are reducing capacity, shutting down plans, short-term labor, and if nothing happens Europe will be totally dependent on Chinese and Asian producers.” – Marie Jaroni, CEO, thyssenkrupp Steel Europe.
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“We want to avoid the ‘solar error’, whereby Europe was subsidizing demand and China was subsidizing supply. As a result, Europe lost its market share of 40% to 0% within 10 years. – Michael Brigl, Head of Europe, Boston Consulting Group.
Life-Links: Competitiveness is also a resilience issue: if logistics costs spike after extreme weather (rerouting, damaged infrastructure, insurance), carbon and energy costs are no longer the only drivers of offshoring.
Support industry to reduce its operating costs
The price of energy, labor and other inputs are rising, and further inflated by carbon pricing, especially as free allowances under the EU’s emission trading scheme (ETS) are ending.-
“There is not a country in the world that has a strong manufacturing sector without a strong chemical industry, Economics are driving value chains out of Europe. It’s energy costs, but the increasing cost of carbon makes us completely uncompetitive against the rest of the world where there is no price on carbon. The CBAM works in theory but in practice it will fail in the marketplace.” – Markus Kameith, CEO BASF.
Life-Links: energy is the critical link in every single supply chain. It is possible to engineer a future zero-carbon European energy grid that delivers security and affordability. But only if all three factors are conscious system-design principles now. And only if we act on those principles.
Accelerate access to grids and electricity
Ensure the abundance of the necessary components and materials, and balance the competing demands of households, industry, electric vehicles, hyperscale data centers and other users.-
“We have fantastic assets in Europe to build our own demand, but the market is not single or one. We must speed up permitting for grid expansions and connections to bring production costs down.” – Jessika ROSWALL, EU Commissioner for Environment, Water Resilience and a Competitive Circular Economy.
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“The money is not the question, there are trillions out there. It’s getting the investable opportunities that are acceptable to the public. The relationship between what people are prepared to pay for their energy and what the cost of energy is going to be is a very crucial one. Where AI and data centers are being built, this is having an impact on the local population because they are facing much higher electricity costs.” – Julia Prescot, Co-Founder, Meridiam & Deputy Chair, National Infrastructure Commission, UK.
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“Energy policy is security policy. We have to rely mainly on renewable energy because we can produce that ourselves. There is no electrification without grids, and without electrification we will have no industry in Europe. Grids are essential to our independence. The good news is that Europe has all the capabilities, such as on HVDC [for long-distance transmission], and at TenneT 75% of the value creation is in Europe” – Tim Meyerjürgens, CEO, TenneT Germany and Vice-Chair, ENTSO-E.
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“The principal constraint of hyperscale data centers is the access to energy. It’s no longer just the end-product that you’re investing in. Cables have been mentioned, and we just finished a comprehensive study on copper in the age of AI: by the year 2040 we’re going to have a 10 million tons of shortage of copper, and it takes 17 years to open a new copper mine. The growth of electricity has a direct interrelationship with supply chains and who owns those supply chains.” – Carlos Pascual, Senior VP for Geopolitics and International Affairs, S&P Global Community Insights; former Ambassador to Mexico and Ukraine.
Life-Links: This is exactly where the resilience conversation needs to expand: grids don’t just need permits and capital but also climate-resilient corridors to move components, and resilient ports/roads/rail and other transport links to keep replacements flowing when storms, floods or heat events hit.
Regulations, integration and cooperation between countries
The political logic of the moment may prioritize domestic concerns and constituencies, but neither crises nor their solutions, care about borders.-
“Policymakers used to set ambitious targets. But at the North Sea Summit they moved to implementation for offshore wind power, which is not about the technology but about the regulation, cooperation and sharing costs and benefits between European countries. For example, build hybrid interconnectors (that connect clusters of offshore wind farms to multiple countries), because then you use this asset not for 3,000 hours but 8,000 hours which makes it much cheaper.” – Tim Meyerjürgens, CEO, TenneT Germany and Vice-Chair, ENTSO-E.
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“You will need an integrated financial market within Europe to get the investments in innovation. We also have to rethink the dual use of innovation for industry and defense.” – Christian Bruch, CEO, Siemens Energy.
Life-Links: The same logic applies to physical risk: climate hazards don’t respect borders, and neither do supply chains. Cooperation should include joint risk mapping and upgrades of the transport and logistics links that underpin Europe’s energy system.
Stimulate demand for green products made in Europe
The EU Council of 27 leaders on 12 February agreed to introduce requirements for EU-made goods and low-carbon for public procurement as part of the announced Industrial Accelerator Act. Made for Germany is an initiative with over 100 leading companies and investors with a 700 billion euros in economic power.-
“The stuff that goes into critical infrastructure has to be made in Europe. We think we are getting a good deal because it is cheaper, but in building a new energy infrastructure we need to think of not just short-term costs but long-term security and resilience. You really need to be willing to pay what I call the sovereignty premium, which in the long term is a good investment in home-grown energy with European companies. I expect policymakers to think 10-20 years ahead, so that companies can make the necessary investments.” – Anne Mettler, Board Member, European Innovation Council and Co-Founder Energy Resilience Leadership Group, who articulated her views on energy security in an article and LinkedIn post.
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“We invest in hydrogen, but will it be used? Our activities on hydrogen are very much demand-driven, but asking customers what they need is too complicated for them because they have a good sight for the next 3, 5, maybe 10 years, but our industry needs 20 years. Clients won’t be able to make a commitment which makes me secure enough for the investment.” – Egbert Laege, CEO SEFE (Safe Energy for Europe).
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“Funding or capital is not the bottle neck. I can invest in green technologies myself. My problem is ongoing operational costs. We have built the largest electrolyser in Europe with public funding, 54 megawatts, making 8,000 tons of green hydrogen. I have no market. Nobody wants green hydrogen.” – Markus Kameith, CEO BASF.
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“If you ask consumer if they are willing to pay for sustainable products the answer of 80% is yes. The reality in front of the shelf is that 95% take the product that is a little bit less expensive. For a new product the briefing is bring me the sustainability impact, but it should not cost more because consumer is not willing today to pay more”. – Carsten Knobel, CEO Henkel.
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“We look at the whole ecosystem: start-ups, technologies, classic renewable energy, battery energy storage, and so on. For example, how can we scale up the production of European inverters used for solar panels, so that we don’t depend anymore on the mainly China-driven production. But what kind of premium are we ready to pay so that we have our energy security and sovereignty over our production?” – Nicola Beer, Vice-President and Member of the Management Committee, European Investment Bank (EIB), and former Vice-President of the European Parliament.
Life-Links: A sovereignty premium without a resilience premium is incomplete. If the transport links to industrial sites and critical infrastructure are disrupted by climate impacts, we may still end up dependent on crisis logistics and emergency repairs.
Take decisions now on new and renewable energy projects with longer-term certainty
Only by creating conditions for certainty will the required infrastructure attract the necessary investments.-
“The projects have become much bigger and higher quality within the renewable energy, which is still quite a young industry, and that is opening up the field for us as investors.” – Harald Von Heyden, Global Head of Energy and Infrastructure, Norges Bank Investment Management.
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“Decisions on new offshore wind projects are needed in the next 12 months, or you will see the industry decline at the end of this decade. For utility companies it is difficult to get the financing and the sentiment on the private banking side is pretty negative against offshore wind. Yet from a levelized cost of electricity these are relatively competitive projects.” – Christian Bruch, CEO, Siemens Energy.
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“We have good talent, physicists, engineers and an industrial ecosystem in Europe. We need financing for the accelerator phase, clarity on the regulatory framework for innovation, such as for nuclear fusion, and collaboration between start-ups and industrial companies. – Heike Freund, Chief Operating Officer, Marvel Fusion.
Life-Links: Longer-term certainty on projects is also affected by the physical climate risks that the assets and supply lines are exposed to, and by whether resilience has been built into the design.
Connect energy security to the energy transition
If the sustainability sector keeps talking and thinking past voters’ immediate concerns, eventually we will squander the trust and political capital without which the energy transition is impossible.-
“Energy security, energy as a source of economic competitiveness, and the energy transition are now thought of in parallel. There is a desire to derisk supply chains, but no country can do this alone. When an issue like energy security becomes a national security issue then there is bigger momentum than if it is seen as a climate issue alone.” – Jason Bordoff, Founding Director, Center on Global Energy Policy at Columbia University; Former Special Assistant to the President and Senior Director for Energy and Climate Change on the Staff of the US National Security Council
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“Diversification of energy sources and suppliers must happen now. Reducing dependence on critical raw materials (CRM) and circularity are important over the longer term.” - Tim Meyerjürgens, CEO, TenneT Germany and Vice-Chair, ENTSO-E.
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“Europe depends on other countries for critical raw materials, for example, 100% rare earths come from China, 82% of niobium used for high grade steel comes from Brazil, and 78% of lithium is imported from Chile. Policy can support diversifying supplies in two ways: by remaining open and looking for new alliances and by making the system more circular, low-carbon and efficient. – Jessika ROSWALL, EU Commissioner for Environment, Water Resilience and a Competitive Circular Economy.
Life-Links: If energy policy is security policy, then logistics policy is energy policy. Europe’s next resilience upgrade should be a joint effort: map the critical supply chain links behind grids and renewables, assess their exposure to climate hazards, and co-invest in the upgrades (physical, operational and workforce) that keep them functioning under stress. That is where the Life-Links Framework contributes: connecting physical climate risk to practical measures for supply chains and logistics resilience.
To have a future, the sustainability agenda must adapt to the world as it is today, not hopelessly long for the world as we imagined it would be yesterday.
This does not mean abandoning our principles. Quite the contrary. It means adapting practice, so that we can build those principles into the bedrock of tomorrow’s world.
And that requires a hardheaded, practical approach to the world as it really is.





