As the ongoing COVID-19 pandemic is rapidly devastating livelihoods and businesses across the globe, effective recovery measures have come to be the need of the hour to address the long-term as well as immediate impacts of the pandemic. As per the latest news, IEA (International Energy Agency), the Paris-based autonomous intergovernmental agency, has put forward a concrete opinion on how governments across the globe can ensure a sustained economic recovery that aligns with sustainability and climate objects.
According to sources, the agency suggested governments to prioritize green energy and ensure that it takes the centerstage in their COVID-19 economic recovery plans, as it forecasts the slowdown in several green power installations for the first time in two decades. The agency warned that the pandemic has far-reaching consequences, as the world grapples with a global crisis that has sent energy demand dropping and is threatening economic contraction.
Reportedly IEA, which had earlier forecast 2020 to be a great year for clean energy, reduced its two-year forecast for growth in green energy capacity by around 10 percent. The agency also warned about construction delays, supply chain disruptions, and financial challenges in the renewable sector.
The electricity supply sectors such as hydropower, wind, and solar are more immune to crises. Moreover, technologies with long lead time such as offshore wind and hydropower were not anticipated witness to significant impact due to on-going pandemic situation.
However, the market for biofuels would witness a major impact due to global travel restrictions and oil prices plummet. The economic downturn is anticipated severely impact transport biofuels such as biodiesel and ethanol which are mostly blended with diesel and gasoline.
Several nations have pledged to surge their use of renewable energy to meet challenging climate targets and the agency urged governments worldwide to redouble these efforts as they plan for post-pandemic economic recovery.
Meanwhile, both China and the U.S are anticipated to increase their renewable capacity as companies rush to finish projects before the expiry of government incentives.
Source Credit - https://www.arabnews.com/node/1677651/business-economy