According to BP the world’s wind and solar Energy capacity grew at a record rate last year while the oil industry recorded its steepest slump in demand since the Second World War.According to BP’s annual review of the Energy sector, the impact of coronavirus lockdowns on the Energy industry led carbon emissions to plummet by 6% on the year before, the sharpest decline since 1945.
The report says the impact of Covid on carbon emissions needs to be replicated every year for the next three decades.Spencer Dale, BP’s chief economist said that they were the biggest drop seen for 75 years. But they occurred against the backdrop of a global pandemic and the largest economic recession in postwar history. The challenge is to reduce emissions without causing massive disruption and damage to everyday lives and livelihoods.
The warning echoes a report from the International Energy Agency last month which predicted that the world’s demand for oil would bounce back by 5.4m barrels a day this year, one of the fastest climbs on record, and rebound to pre-pandemic levels by the end of 2022. Last year BP set out a plan to cut its oil production and increase its renewable Energy generation within the next decade, en route to becoming a net zero company by 2050.
BP’s latest Energy review found that the world’s total Energy consumption fell by 4.5% in 2020, driven mainly by a 9.7% slump in demand for crude, used to make transport fuels, or just over 9m barrels of oil a day. Dale said the collapse in demand was far bigger than anything seen in history and far bigger than the falls in other sources.Dale said that the relentless expansion of renewable meant electricity generated by wind, solar and hydroelectricity plants was relatively unscathed.