We now expect massive infusions of government cash across the world to stimulate economies.
But it does not change any of the underlying drivers of the climate emergency. The immediate future must be focused on ending the pandemic. Take advantage of the new recognition for experts and evidence-based policymaking.Accelerate the localisation of energy systems and community energy.Tap into the realisation from citizens that having clean air to breathe and a clear blue sky to enjoy is worth a lot to consumers.See the collapse of oil prices as an opportunity, not a threat.So, what could the sector be championing now to enable such an outcome? Here are a few ideas: It’s impossible for anyone to say which scenario will come to pass but for the new energy sector, scenario 3 is obviously most desirable. Global co-operation on the energy transition is most clearly supported in this scenario. In this scenario, global agreements on trade and co-operation consistent with more decentralised and sustainable supply chains are enacted. The world recognises the need for sensible global governance structures, and the benefits for all countries of working together, while also accepting that a ‘new normal’ is needed.For some countries, this may result in strong support for renewables but in others it will not, and it certainly is not consistent with concerted global action on the energy transition. National disunity remains dominant, but countries focus on building their own resilience and national capabilities to withstand times of crisis.This is clearly not consistent with concerted global action to address the climate emergency and energy transition. The world returns to business as normal, and this drift towards national disunity continues.We see three potential scenarios to 2030: Our thesis is the world has been drifting into national disunity – think Trump and Brexit alongside the numerous political divisions across the world over recent years since the 1990s. These ideas and resulting scenarios are illustrated in the simple schematic, above right. Do we return to the world of global free-market competitive supply chains, or do we develop more decentralised and local approaches that build resilience? There is a natural reaction for countries to close their borders and protect themselves during the crisis, and if this mindset is prolonged beyond the crisis it will lead to further negative consequences in future.įrom Delta-EE’s new energy perspective, we think there’s another choice that the world will have to make. In an excellent article in the Financial Times, Yuval Noah Harari argued that these times of emergency force us to choose between going down the route of national disunity or global solidarity. So, can the industry start thinking ahead now, to what a post Covid-19 ‘new normal’ could look like? But we argue here that there are reasons for optimism: history tells us that times of emergency enable rapid change in ways that cannot be anticipated, and it’s possible that these may play out in ways that will support an accelerated energy transition. At face value, the new energy sector is no exception to this. The global pandemic is truly an ugly black swan event for the world, disrupting all areas of our society and economy. Please note comments are moderated before publication.An accelerated energy transition could result from this time of crisis. Got a comment? Leave your thoughts in the comments section, below. ► Follow us on Instagram: Financial Times YouTube Channel ► Check out our Community tab for more stories or to suggest videos.
See if you get the FT for free as a student ( ) or start a £1 trial: Historian and philosopher Yuval Noah Harari talks about nationalism versus global leadership – and the perils of a perpetual surveillance state, with FT Weekend editor Alec Russell at the FT Weekend Spring Festival 2021.
Financial Times published this video item, entitled “Yuval Noah Harari: ‘Pandemics are no longer natural disasters, they’re political failures’ I FT” – below is their description.