ISMR June 2022 - Page 24

INDUSTRY REPORT

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INDUSTRY REPORT

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We highlight new forecasts , challenges and changes in global energy markets for manufacturers .
“ Rapid increase in demand has pushed power prices and emissions to record levels , with serious implications for consumers , economies and clean energy transitions .”

The world is experiencing a turning point in international economic and energy policy – one that brings with it rising energy prices , disrupted supply chains and a major impact on global industrial production . Global energy prices increased significantly in the second half of 2021 and early 2022 , buoyed by the recovery in the global economy . Russia ’ s invasion of Ukraine led to another dramatic spike in prices .

Clean energy spending earmarked by governments in response to the COVID-19 crisis has risen by 50 % over the past few months and now stands at over US $ 710 billion worldwide although there are troubling imbalances between regions , according to the latest update of the International Energy Agency ’ s Sustainable Recovery Tracker .
“ In emerging and developing economies , around US $ 52 billion of sustainable recovery spending is planned by the end of 2023 , well short of what is needed in a pathway towards net zero emissions by 2050 . The gap is unlikely to narrow in the near term , as governments with already limited fiscal means now face the challenge of maintaining food and fuel affordability for their citizens amid the surge in commodity prices following Russia ’ s invasion of Ukraine ,” commented the IEA ( International Energy Agency ).
Rising fossil fuel prices , which have been exacerbated by Russia ’ s invasion of Ukraine , have pushed governments both to enact immediate measures to make energy more affordable and to explore efforts to reduce fossil fuel dependency . However , many of the measures most effective in reducing oil and gas demand – such as installing heat pumps and expanding the use of public transport , bike lanes and high-speed rail – have not yet received the needed level of government support to date .
Surging electricity demand
Global electricity demand surged in 2021 , creating strains in major markets , pushing prices to unprecedented levels and driving the power sector ’ s emissions to a record high . Electricity is central to modern life
24 | sheetmetalplus . com | ISMR June 2022