The Energy Sector Transformation Will Stop for No Pandemic
Though the coronavirus has thrown the oil markets into disarray, the pandemic is ultimately a temporary anomaly in the longer-term trends in energy sector. The breakthrough of renewable energy, climate change and sustainability requirements haven’t gone anywhere, and they continue to fundamentally impact the entire sector.
Energy projects continue to interest many financiers, investors and buyers despite the current crisis. This is very good news, as the continuity of financing is important in any transformation.
Responsibility goals are a cornerstone of sustainable business. Customer demand for low-emission and energy-efficient services and products is continually increasing. Energy touches every level of society, and energy sector companies can have a global impact through responsible business practices.
Alongside customer expectations, international regulation is also speeding this transformation. The European Commission published its proposal for climate legislation in March. This legislation would set a binding target for the EU to achieve carbon neutrality by 2050. However, energy sector actors cannot afford to wait for regulation and political decisions – it is vital to move forward with transforming their businesses today. If anything, the coronavirus looks set to increase the speed of change: EU decisionmakers have already mentioned accelerating the Green Deal investment programme.
Global energy sector projects and transactions call for international operating models and contractual practices. They provide certainty to the implementation of investments and, thus, play a role in moving the global economy into a more sustainable future.