Without oil. How to save the economy from coronaries

Без нефти. Как спасают экономику от коронакризиса

Photo: Getty

Experts figured out how to pull the economy out of the crisis

The transition to “green” rails prostimulirujte not only economic growth but also closer to the implementation of the plan to reduce emissions.

The unprecedented global crisis caused by a coronavirus pandemic, provoked the deepest economic shock since the great depression. It has a detrimental effect on employment and investment in all sectors of the economy.

The international energy Agency jointly with the International monetary Fund has prepared a Plan for sustainable recovery, which describes how to restart the growth of the world economy on a low carbon basis. Корреспондент.net tells details.

The plan of salvation of the world economy

The plan, published as part of the project, the IMF, the Prospects of world energy development, contains 30 measures, designed for three years. Its implementation will cost the global economy one trillion dollars annually, or 0.7 percent of global GDP.

If in the beginning of 2020, it was expected that global players investing in the energy industry will grow this year by two percent, now, on the contrary, the spread of coronavirus can lead to a record drop.

This will not only create problems for the oil companies, but will slow the transition to green energy, consider in IEA. Experts predict that global energy investments this year will be reduced by about a quarter — to $ 1.5 trillion. Moreover, investments in the oil and gas sector will be reduced by one third to 511 billion.

Investment in renewable energy was more stable. The IEA predicts that they will decrease by ten percent to 281 billion.

In the joint IMF plan identifies three main goals: promoting economic growth, job creation and the construction of more sustainable and clean energy systems.

As experts expect, the implementation of this plan will lead to the growth of the global economy by 1.1 percentage points further, to save and create more than nine million jobs and build a flexible and sustainable supply system.

Execution of the plan will also lead to the reduction of greenhouse gas emissions in the energy sector at 4.5 billion tonnes in the next three years. This will enable to prevent the resumption of global growth after the quarantine and to fulfill the purpose of the Paris agreement. Details about this agreement in a material War against nature: how to pass the point of no return.

“In the near future politicians will have to take extremely important decisions in a very short period of time. These decisions will shape the economic and energy infrastructure for decades to come and will almost certainly determine whether or not the world has the chance to achieve their long-term energy and climate goals,” IEA said in.

The plan offers the following:

  • to accelerate the launch of new low carbon sources of electricity (wind and solar), thus modernizing and expanding the electric network;
  • to promote “clean” vehicles such as electric cars and high speed rail;
  • to improve the energy efficiency of buildings and equipment, as well as equipment in the food and textile industries;
  • stimulate innovation in the field of hydrogen production battery storage captured carbon, and small modular nuclear reactors.

Birol stressed that the plan was not intended to force the world leaders to stick to it: “We just want to show governments what they can saddle for the global energy industry”.

A similar plan would put the economy on a “green” track at the end of may developed by the European Union. The European economy is second in the world after the United States and from pandemic coronavirus are more affected than others.

The EU is willing to spend 750 billion euros to combat the worst crisis in its history. He hopes that a record bailout package will restore the unity and the economy of the world’s largest political Union and return it to a leading position in the world.

It has long been clear that who the first starts at the exit of the largest in a century of world crisis, that it is easier to count on the leadership in the future.

Most of the 750 billion intended to run, and the simultaneous restructuring of the economy through state investments in promising sectors and investments in infrastructure and social welfare. And by stimulating private investment through co-financing from the Treasury.

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According to analysts Bloomberg New Energy Finance, the EU capital mobilization to Finance low-carbon projects in the 75-150 billion euros could lead to the creation of gross value added in 180-350 billion euros, the emergence of about three million new jobs and reduce carbon emissions by 15-30 percent by 2030.