Energy, Climate and the COVID-19 Schocks: Double or Quits
The shocks from COVID-19 likely to affect energy and the climate are multiple and unprecedented in scale and scope.
Shocks from collapsing prices due to plummeting and then paralyzed demand combined with overproduction: this is the case for oil, but also to a lesser extent for electricity and gas. Other raw materials are also being affected.
Shocks to investments, because oil, as well as electricity companies, are experiencing dramatic falls in earnings while waiting for the peak of the pandemic to pass. They are cutting spending and revising or postponing projects. Jobs and smaller company survival are under threat.
By Marc-Antoine Eyl-Mazzega (IFRI -Institute Francais des Relations Internationales)