Page 10 - European Energy Innovation - summer 2020 publication

10 Summer 2020 European Energy Innovation

COVID-19'S IMPACT ON THE ENERGY SECTOR

Covid-19’s impact on the
energy sector

By Ms Mechthild Wörsdörfer (pictured), Director of Sustainability, Technology and Outlooks –
International Energy Agency
The coronavirus (Covid-19)
has created the biggest gas, which see steep falls.
global crisis in generations,
sending shock waves To avoid a big rebound, we need
sustainable recovery plans based on

through health systems, economies, smart energy policies. In this context,

and societies around the world. the EU’s Covid-19 recovery package

Faced with an unprecedented and Multiannual Financial Framework

situation, governments are focused (MFF) will be important as well as

on bringing the disease under control continued commitment from the EU

and reviving their economies. to the European Green Deal - as a

growth strategy and to ensure a just

The energy sector is also severely transition towards a climate neutral

affected by this crisis, which Europe by 2050.

has slowed transport, trade and

economic activity across the globe. Near-term opportunities for jobs
The IEA’s analysis, published in our and cutting emissions
Global Energy Review 2020, shows In March, the IEA’s Executive Director

that global energy demand declined Dr. Fatih Birol was the first leader of

by 3.8% in the first quarter of 2020 an international organisation to make

and that months-long restrictions a call to governments to put clean

on economic activity could lead to energy at the heart of economic

a drop in energy demand by 6% by recovery. Numerous IEA events have

the end of the year. This is the largest been held since to examine Covid-19

drop in 70 years and seven times implications across the energy sector,

greater than the 2009 financial crisis. including Ministerial Roundtables on

The story is similar for global CO2 clean energy in economic recovery,
emissions projections as we expect mobilising investment in sustainable

a decline of nearly 8% in 2020, where and resilient electricity systems,

Europe might see the lowest levels impacts on Africa’s energy sector as

since the late 1950s. well as our annual Global Conference

on Energy Efficiency. These events

Global energy investments are will culminate in the IEA’s Clean

also severely affected by the crisis. Energy Transitions Summit on 9

As shown by our World Energy July 2020, which will gather a grand

Investment report released end May, coalition of leaders representing the

a fall in businesses’ capital spending global energy community to explore

of US$400 billion – one fifth of 2019 pathways to a sustainable recovery,

levels – could be expected in 2020. on the way to COP26.

Investment activities have been

disrupted by lockdowns but also by As a basis for this discussion, we will

a sharp fall in revenues, especially release the World Energy Outlook

for the oil and gas sector. Europe’s Sustainable Recovery report this

estimated decline is around -17%, June. The report will provide input on

with investments in electricity grids, how governments most effectively

wind and efficiency holding up better can use economic recovery to boost

than distributed solar PV and oil and jobs while advancing clean energy

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