ABSTRACT
The present work analyses the lessons learnt from the Covid19 (Coronavirus) pandemic that could possibly apply to the energy sector, with a special focus to decarbonizing transport. Distinguishing between short/medium- and medium/long-term options, the scope is to discuss how issues such energy security, energy storage and energy system resilience should deserve more attention. Today, fuel demand has fallen to unprecedented levels, with jet fuel demand being the most affected one. Oil price is at the lowest values recorded for many years while on 20 April it even reached a negative price in the US for the first time in history. While in the short-term low oil prices would be attractive, the long-term negative consequences could be very relevant, with significant associated costs for the EU economy and Member states (MS) related to the collapse of demand and to the socio-economic impacts. New measures should thus be considered in the post Covid19 strategy. In particular, while in a short- to medium-term view the oil sector will require specific support measures to overcome the economic and physical shock brought in by the pandemic, in a medium to long-term perspective domestic sources such as Renewable and Recycled Carbon Fuels (RRCF) should be regarded as a way to secure energy supply, leading to significant technical and economic advantages. Thus, EU should allocate adequate resources in the post-Covid recovery plans to definitely allow the transition to renewable energy sources and particularly to bio-based economy and stainable transport fuels. Decarbonisation of transport through RRCF and economic recovery do not compete, but rather represent a win-win solution in a well-designed and sustainable implementation strategy, especially when low or zero interest-rate investments are foreseen. The EU should take the opportunity to match the UN SDG (Sustainable Development Goals) and EU Green Deal goals with the need to inject economic and financial resources into the real economy improving the socio-economic conditions of EU populations. Both agroforestry and RRCF industry are ready to produce (biomass) or source (waste) the feedstocks as well as the technologies, systems and components needed by the industry along the whole value chain. The roadmap to cleaner transport fuels thus represent an evident opportunity to meet climate, economic and societal post-Covid19 goals, in a win-win-win approach.
ABSTRACT
The present work considers the dramatic changes the COVID-19 pandemic has brought to the global economy, with particular emphasis on energy. Focusing on the European Union, the article discusses the opportunities policy makers can implement to reduce the climate impacts and achieve the Paris Agreement 2050 targets. The analysis specifically looks at the fossil fuels industry and the future of the fossil sector post COVID-19 pandemic. The analysis first revises the fossil fuel sector, and then considers the need for a shift of the global climate change policy from promoting the deployment of renewable energy sources to curtailing the use of fossil fuels. This will be a change to the current global approach, from a relative passive one to a strategically dynamic and proactive one. Such a curtailment should be based on actual volumes of fossil fuels used and not on percentages. Finally, conclusions are preliminary applied to the European Union policies for net zero by 2050 based on a two-fold strategy: continuing and reinforcing the implementation of the Renewable Energy Directive to 2035, while adopting a new directive for fixed and over time increasing curtailment of fossils as of 2025 until 2050.