The COVID-19 pandemic represents the biggest shock to the global economy in more than seven decades, but new research says that the outbreaks are likely to result in a record-breaking 8% annual decline in carbon emissions—the largest decrease in history.
A new report released this week by the International Energy Agency (IEA) provides an almost real-time view of the COVID-19 pandemic’s extraordinary impact across all major fuels. Based on an analysis of more than 100 days of real data so far this year, the IEA’s Global Energy Review includes estimates for how energy consumption and carbon dioxide (CO2) emissions trends are likely to evolve over the rest of 2020.
“Only renewables are holding up during the previously unheard-of slump in electricity use,” said Dr. Fatih Birol, the IEA Executive Director. “It is still too early to determine the longer-term impacts, but the energy industry that emerges from this crisis will be significantly different from the one that came before.”
The Global Energy Review’s projections of energy demand and energy-related emissions for 2020 are based on assumptions that the lockdowns implemented around the world in response to the pandemic are progressively eased in most countries in the coming months, accompanied by a gradual economic recovery.
RELATED: Trillions of Dollars Now Being Leveraged to Protect the Earth, Thanks to World’s Largest Asset Manager
The report projects that energy demand will fall 6% in 2020—seven times the decline after the 2008 global financial crisis. In absolute terms, the decline is unprecedented—the equivalent of losing the entire energy demand of India, the world’s third largest energy consumer.
Advanced economies are expected to see the biggest declines, with demand set to fall by 9% in the United States and by 11% in the European Union. The impact of the crisis on energy demand is heavily dependent on the duration and stringency of measures to curb the spread of the virus. For instance, the IEA found that each month of worldwide lockdown at the levels seen in early April reduces annual global energy demand by about 1.5%.
Changes to electricity use during lockdowns have resulted in significant declines in overall electricity demand, with consumption levels and patterns on weekdays looking like those of a pre-crisis Sunday. Full lockdowns have pushed down electricity demand by 20% or more, with lesser impacts from partial lockdowns. Electricity demand is set to decline by 5% in 2020, the largest drop since the Great Depression in the 1930s.
MORE: Bill Gates Has Just Invested in a Company That Grows Palm Oil in a Lab to Save the Rainforests
At the same time, lockdown measures are driving a major shift towards low-carbon sources of electricity including wind, solar PV, hydropower and nuclear. After overtaking coal for the first time ever in 2019, low-carbon sources are set to extend their lead this year to reach 40% of global electricity generation—6 percentage points ahead of coal.
Electricity generation from wind and solar PV continues to increase in 2020, lifted by new projects that were completed in 2019 and early 2020. An additional report from energy research group BloombergNEF says that wind and solar power are now the cheapest sources of new energy development for two-thirds of the world’s population.
This trend is affecting demand for electricity from coal and natural gas, which are finding themselves increasingly squeezed between low overall power demand and increasing output from renewables. As a result, the combined share of gas and coal in the global power mix is set to drop by 3 percentage points in 2020 to a level not seen since 2001.
LOOK: Three-Story ‘Water Battery’ Has Already Slashed University’s Electrical Costs By 40% in One Month
Coal is particularly hard hit, with global demand projected to fall by 8% in 2020, the largest decline since the Second World War. Following its 2018 peak, coal-fired power generation is set to fall by more than 10% this year.
After 10 years of uninterrupted growth, natural gas demand is on track to decline 5% in 2020. This would be the largest recorded year-on-year drop in consumption since natural gas demand developed at scale during the second half of the 20th century.
Renewables are set to be the only energy source that will grow in 2020, with their share of global electricity generation projected to jump thanks to their priority access to grids and low operating costs. Despite supply chain disruptions that have paused or delayed deployment in several key regions this year, solar PV and wind are on track to help lift renewable electricity generation by 5% in 2020, aided by higher output from hydropower.
LOOK: New Power Plant Turns Waste into Energy—and Doubles as a Ski Slope and Climbing Wall
“This crisis has underlined the deep reliance of modern societies on reliable electricity supplies for supporting healthcare systems, businesses and the basic amenities of daily life,” said Dr. Birol. “But nobody should take any of this for granted—greater investments and smarter policies are needed to keep electricity supplies secure.”
As a result of these trends—mainly the declines in coal and oil use—global energy-related CO2 emissions are set to fall by almost 8% in 2020, reaching their lowest level since 2010. This would be the largest decrease in emissions ever recorded—nearly six times larger than the previous record drop of 400 million tonnes in 2009 that resulted from the global financial crisis.
“Resulting from … economic trauma around the world, the historic decline in global emissions is absolutely nothing to cheer,” said Dr Birol. “But governments can learn from [the 2008 crisis] by putting clean energy technologies—renewables, efficiency, batteries, hydrogen and carbon capture—at the heart of their plans for economic recovery. Investing in those areas can create jobs, make economies more competitive and steer the world towards a more resilient and cleaner energy future.”
Reprinted from the International Energy Agency
This is just one of many positive stories and updates that are coming out of the COVID-19 news coverage this week. For more uplifting coverage on the outbreaks, click here.
Power Up With Positivity By Sharing The Silver Lining With Your Friends On Social Media…