Renewable energy can power Britain’s post-crisis recovery

One of the many effects of this crisis has been tumbling oil prices, with some indexes even going negative last week. Given that economic activity pretty much everywhere has fallen off a cliff, that’s not all that surprising. However, even if the oil price recovers as lockdowns are lifted, big risks remain for the sector, such as cost falls in renewable energy, insecurity in the fossil fuel supply chain, and climate policies.

On the other hand, a new forecast from the International Renewable Energy Agency (IRENA) suggests there are major economic gains to be had from deploying enough renewable energy to meet our climate goals. Renewable energy could play a huge role in the immediate economic recovery from coronavirus, as well as helping to mitigate the effects of climate change.

Recent events in the oil market have the potential to reinforce and accelerate pre-crisis trends. Oil demand was already hit by the electrification of transport and the drive against single-use plastics. At the same time, governments and industry are investing billions in developing electric planes and green shipping fuels like ammonia, which would further weaken oil’s market share.

There is a live debate about when peak oil demand might happen – some say it could be this decade – which explains why UK-based oil firms like BP and Shell have recommitted to their climate change targets, even in these challenging times. The gradual shift in their strategies towards clean energy says as much about economics as it does about environmental concerns. They are looking to the future.

 
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Πηγή: capx.co