According to a report by Moody’s Investors Service, the coronavirus pandemic has accelerated the global transition toward a low-carbon economy thanks to government and societies’ efforts to prioritize environmental progress. Moody’s said the government’s policies in the US would propel growth in renewable power from around 17% in 2019 to at least 28% of the nation’s power supply by 2030.
The rating agency also forecasts the G-20 economy to shrink by 4.6% this year before rebounding by 5.3% in 2021. It noted that the economic recovery would mostly depend on virus containment. Infections are resurging in the US and Europe as temperatures fall, sparking worries on stuttering recovery. Many industries, such as travel and tourism, are unlikely to regain their pre-pandemic size until 2023 at the earliest, Moody’s reported.
In the report, Moody’s said that natural gas is now under greater scrutiny over greenhouse gas emissions and environmental impacts. Building new infrastructure will likely face permitting difficulties as local governments favor electrification and carbon footprint reduction. Moody’s noted that the advancement in competing technologies, including battery storage could speed up the decline of gas assets.
