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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