Will Covid-19 accelerate the renewable energy transition in emerging markets?

Will Covid-19 accelerate the renewable energy transition in emerging markets?

With new data showing that global carbon emissions are rebounding more quickly than expected  after coronavirus lockdowns are eased, questions are being asked about the prospects for renewable energy projects in emerging markets.



Just as the pandemic has had an considerable impact on the global economy, travel restrictions and the suspension of industrial activities have led to an unprecedented drop in global emissions (https://oxfordbusinessgroup.com/news/covid-19-and-gulf-energy-sector-business-usual).



According to data from the Helsinki-based Integrated Carbon Observation System (ICOS), by the first week of April daily carbon emissions had fallen by 17% against mean 2019 levels, with some countries experiencing a 26% fall in CO2 output.



The fall was the sharpest on record, with global emissions dipping back to 2006 levels. This was a far greater drop in both absolute and percentage terms than was seen at other comparable moments in history, such as the Arab oil embargo of 1973, the collapse of the Soviet Union or the 2008 Global Financial Crisis.



However, as lockdown measures have been eased and economic activity has resumed, emissions have also increased.



ICOS statistics found that by June 10, emissions had rebounded to a level just 4.7% below pre-lockdown levels, with the recovery taking place more quickly than