Pandemic risks slowing the energy transition
Beyond the forecast of a ‘new normal’ that accelerates the move to a lower-carbon future, there is also a scenario where change is retarded
Decarbonisation of the energy mix is receiving a boost from the recent collapse of the global economy—with investment in fossil fuel production being hit harder by Covid-19 than renewables, based on the IEA’s latest World Energy Investment report. But, in a post-pandemic world, the global energy transition is likely to be slower than it would otherwise have been for three reasons: greater geopolitical rivalry; fewer financial resources; and lower oil and gas prices. Geopolitical challenges America’s unipolar moment following the collapse of the Soviet Union in 1991 was relatively brief. A new authoritarian bloc—in which China and Russia were most prominent, if not always allies—began to emer
Also in this section
3 May 2024
Developers look to government’s forthcoming budget to restore support as industry suffers loss of momentum
1 May 2024
Abundant storage and low cost of capturing CO₂ from sharply rising gas production mean NOC’s ambitious CCUS targets look well within reach
29 April 2024
Decarbonisation push and shifting multilateral trade policy sharpens continent’s need for carbon trading
29 April 2024
Canada’s oil sands producers need policy certainty to make the multibillion-dollar investments needed to achieve net zero, Pathways Alliance president Kendall Dilling tells Carbon Economist