NEWS COMMENTARY

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

Published:
May 01, 2020
Services:
Government & Non-Profit More...
Activities:
Strategy
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.

For the original news article, click here .


Further Reading

Indonesia bucks the global decarbonization trend in favor of supporting domestic industries

News Commentary | January 11, 2021

Last year, we predicted that in the aftermath of COVID‑19, countries will make use of domestic resources an even greater priority, though not at the sacrifice of decarbonization efforts. Indonesia is emerging as one country looking to favor its domestic coal and palm oil resources over the shift ... Not part of subscription

The energy transition needs the oil industry's investment power; shareholders recognize this and vote to change Exxon from within

News Commentary | June 01, 2021

Irena estimated that the 2020 annual capex on renewable energy to be $300 billion. The agency warned that this must increase to $800 billion by 2050 to avert climate change. In that light, the impressive investments by Microsoft (a $1 billion fund) and Jeff Bezos (a $10 billion fund) are but rather ... Not part of subscription

Key Trends and Technologies Shaping the Future Global Energy System

State of the Market Report | December 31, 2021

Global cooperation and policies are accelerating the already‑rapid pace of the energy transition. In the years since the passage of the Paris Agreement, countries have increased funding for emissions‑reduction programs and enacted stricter regulations around emissions. Combined with falling prices ... Not part of subscription