COVID-19 will impact the global energy transition in the near term, but could accelerate developments upon economic recovery

May 01, 2020
Owning the Energy Transition
Very important

The WEF predicts that COVID-19 may enable a new energy order to accelerate the global energy transition. There will undoubtedly be near-term impacts on renewable energy deployment, but fossil fuels will face the same effects as companies cut back on capital spending and banks put a hold on financing major projects. In the long term, a drawn-out economic downturn will instead shorten ROI timelines for major fossil fuel projects, while government plans for decarbonization are likely to stand firm. The industry may witness a boom in renewable energy deployments during recovery as countries strive to mitigate the effects of volatile commodities and increase the resiliency of their domestic energy systems while achieving decarbonization goals.

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