The International Energy Agency (IEA) believe that global energy demand could rebound to 2019 levels as soon as 2023, according to their flagship World Energy Outlook 2020 report.
Global energy demand is set to fall by 5% in 2020, the largest peacetime fall since the Great Depression, and energy-related CO2 emissions will fall by 7%.
However, despite much talk about a ‘net zero reset’, the IEA believe that it remains in the balance whether the global pandemic will help to accelerate clean energy transitions. Although the report states that a recovery program of investment in clean energy technologies would “boost economic growth, create jobs and reduce emissions”, this approach has only been adopted by a small number of countries (including Canada, Korea and the United Kingdom).
The IEA also expects energy demand to rebound slower than after the 2008-09 global economic crisis where demand rebounded almost immediately. Based on existing policy intentions, global energy demand is expected to reach pre-Covid levels by 2023. However, in the event of an extended pandemic and a deeper recession, this will not happen until 2025.
On a more positive note the report does point to the slow death of certain fossil fuels, with oil and coal demand set to be significantly curtailed before 2040 (although natural gas demand is expected to be more robust). Meanwhile, renewable generation (led by more efficient solar) is expected to cover more than 80% of global electricity demand growth.
To speak to a member of the procurement team, get in touch:
Call: 01252 560 379