Global energy demand is set to drop 5% and energy investments could dip 18% in 2020 driven in part by the COVID-19 crisis, according to the International Energy Agency's annual report released Tuesday.
The IEA also predicted a 7% drop in energy-related carbon dioxide emissions this year, and that the crisis could hasten the transition to clean energy. "Whether this upheaval ultimately helps or hinders efforts to accelerate clean-energy transitions and reach international energy and climate goals will depend on how governments respond to today's challenges," the World Energy Outlook 2020 report said.
It looks at the next 10 years and explores different pathways out of the crisis, based on four possible scenarios: current policies and recovery from the COVID-19 crisis by 2021; a delayed recovery until 2023; a sustainable development scenario with a surge in clean-energy policies and investment; and net-zero emissions targets by 2050.
The report is the first detailed modeling of what it would take to reach net-zero emissions by 2050, the IEA said.