INDUSTRY REPORT
“ Amid deep disruption and uncertainty caused by the pandemic , a surge in well-designed energy policies is needed to put the world on track for a resilient energy system that can meet climate goals .”
A wind farm . Credit : Jason Blackeye ( Unsplash ).
INDUSTRY REPORT
A NET-ZERO VISION
We highlight the march to net-zero , COVID-19 impacts , challenges and opportunities in global power generation markets
The COVID-19 pandemic has caused more disruption to the energy sector than any other event in recent history , leaving impacts that will be felt for years to come .
“ It is too soon to say whether today ’ s crisis represents a setback for efforts to bring about a more secure and sustainable energy system , or a catalyst that accelerates the pace of change . The pandemic is far from over , many uncertainties remain and crucial energy policy decisions have yet to be made ,” commented the IEA .
Whether this upheaval ultimately helps or hinders efforts to accelerate clean energy transitions and reach international energy and climate goals will depend upon how governments respond to today ’ s challenges .
World Energy Outlook
Amid deep disruption and uncertainty caused by the pandemic , a surge in well-designed energy policies is needed to put the world on track for a resilient energy system that can meet climate goals .
The World Energy Outlook ( WEO ), from the International Energy Agency ( IEA ), provides critical analysis and insights on trends in energy demand and supply , and what they mean for energy security , environmental protection and economic development . It focuses on the pivotal period of the next ten years , exploring different pathways out of the crisis .
The new report provides the latest IEA analysis of the pandemic ’ s impact : global energy demand is set to drop by 5 % in 2020 , energyrelated CO 2 emissions by 7 %, and energy investment by 18 %. The WEO ’ s established approach – comparing different scenarios that show how the energy sector could develop – is more valuable than ever in these uncertain times . Four possible pathways are presented in the report .
In the Stated Policies Scenario , which reflects announced policy intentions and targets , global energy demand rebounds to its pre-crisis level in early 2023 . However , this does not happen until 2025 in the event of a prolonged pandemic and deeper slump , as shown in the Delayed Recovery Scenario . Slower demand growth lowers the outlook for oil and gas prices compared with pre-crisis trends . But large falls in investment increase the risk of future market volatility .
22 | sheetmetalplus . com | ISMR September 2021