Various nations can successfully emerge from the covid-19 pandemic with the notably clear pathway to a net-zero future if the right actions are taken now, a chief executive and co-founder of an investment consultancy based in London stated. According to him, it can also be considered as the silver lining to covid-19. Let us dive deeper into the topic to understand better.
Impact of Covid-19: Positive or Negative?
While the covid-19 pandemic has led to a negative impact on the overall economy, it has also delivered a positive effect to the global energy demand by decreasing it and bringing ahead the peak of emissions associated with energy by approximately 5 years. Other than that, in the long term, just the market forces cannot bring carbonization in sectors like heavy industries, steel, cement, transportation, aviation, and chemicals. People do not want to stop flying, rather they simply want to fly in a sustainable manner.
What is the Need of the Hour?
Scaling up technologies, thereby delivering a carbonized future is the need of the hour. Apart from that, there is a demand for policies to scale and commercialize alternative fuels like hydrogen and energy efficiency measures, hence incorporating carbon utilization, storage, and capture.
One thing can be considered for sure that we are living by an energy revolution. We experienced the communications and industrial revolution and now there is the energy revolution. Where we stand today is likely to be entirely different from where we are likely to be in the next 5 years. Moreover, to maximize the possibility of such a revolution, there is a need for new strategies based on digitalization, energy assets, future-proofing infrastructure, and clean energy to make nations compete in the worldwide marketplace.
Understanding Energy’s DNA
To get more and more granular with digitalization, we have to understand the DNA of energy. When it comes to green transitions, they are based on decoupling economic development from using resources, thereby incentivizing multi-vector fuel switching, hence delivering sustainable industries. Profitability needs to be delivered with the help of energy transition rather than “at a cost.” It is feasible and increasing the delivery speed is required.
Clean energy has turned out to be a one-stop destination for investors. Whether you are a low-risk investor or a high-risk investor, there happen to be many opportunities for both. At least, there is something for everyone. The notable thing is that money moves away from gas and oil following the energy transition. It can also be considered that the world is sending a message with covid-19, thereby guiding us to move towards a sustainable future.
By applying key strategies to enhance energy efficiency within buildings, consumers can be further empowered, thereby providing access to entire electric mobility. A market design incentivizing the customers to modify their behavior is the need of the hour.
These days, it is widely accepted that gas used has an important role to play with any holistic strategy concerning energy transition. One can utilize existing gas infrastructure for energy storage purposes, thereby upgrading it to be entirely digital. This would help enable real-time gas grid monitoring, hence making and feasible to highlight super emitters, henceforth contributing to the majority of emissions.
Final Remarks: The Potential for Digitalization
Organizations these days are highlighting the potential for digitalization to help in accelerating a green transition. As we remain at the tipping point of technology, we also remain at the tipping point of what the earth can afford in terms of its natural resources. When considering the covid-19 with the climate crisis, all the opportunity is regarding global collaboration to flatten the curve of the crisis we are facing together. Digitalization should emphasize as a key enabling pillar, thereby accelerating a green energy transition.