The energy world is riven by many contradictions that are making the climate change-driven transition to a low-carbon world difficult. The situation has become more complex due to the Covid-19 pandemic depressing energy demand and an oil price war so vicious that, at one point, US producers were paying traders to cart surplus production away. Prior to the crisis, complexities threatening to undermine the energy transition included the gaps between: The promise of energy for all and the fact that almost one billion people still do not have access to electricity. The latest evidence highlighting the need for ever more rapid cuts in global greenhouse gas emissions and the data showing that energy-related emissions hit another historic high in 2018. The expectations of fast, renewables-driven energy transitions and the reality of today’s energy systems in which reliance on fossil fuels remains stubbornly high. The supposed calm in well-supplied oil markets and the lingering unease over geopolitical tensions and uncertainties even before Russia and Saudi Arabia went for one another’s throats. Each year about $1.8 trillion is invested in the energy sector, providing an important leading indicator of the way that the system is evolving, both on the supply and demand sides. Oil is the largest component. Very little of that total is being invested in low-carbon energy.
Energy Voice 11th May 2020 read more »