Fossil Fuel Slump, COVID-19 Make Renewables More Cost-Effective Than Ever - UN Report

Fossil Fuel Slump, COVID-19 Make Renewables More Cost-Effective Than Ever - UN Report

The collapse of the fossil fuel sector, exacerbated by the coronavirus crisis, has demonstrated that renewable energy is becoming a more cost-effective investment than ever, and governments should prioritize clean energy in their post-pandemic economic recovery plans, a UN report said

MOSCOW (Pakistan Point News / Sputnik - 11th June, 2020) The collapse of the fossil fuel sector, exacerbated by the coronavirus crisis, has demonstrated that renewable energy is becoming a more cost-effective investment than ever, and governments should prioritize clean energy in their post-pandemic economic recovery plans, a UN report said.

The report "The Global Trends in Renewable Energy Investment 2020," published on Wednesday, presents a collaboration between the UN Environment Programme (UNEP), Frankfurt School-UNEP Collaborating Centre, and energy research organization BloombergNEF. In a foreword, the authors of the report say that "thanks to technology improvements, economies of scale and fierce competition in auctions," cost of wind and solar electricity continue to fall over the last decade. They, in particular, note a 83 percent drop in cost for electricity from new solar photovoltaic plants in the second half of 2019 compared to where it was a decade before. The report still says that "there is room to do much more."

"Simply repeating the investment of the last decade over the next would buy far more clean energy than it did before. The slump in the fossil fuel sector due to Covid-19, combined with the resilience clean energy has shown during this period, made it clear that clean energy is a smart investment," the report said.

The paper therefore calls on governments to "take advantage of the ever-falling price tag of renewables" and put clean energy at the heart of COVID-19 economic recovery, describing it as "one of the smartest, most cost-effective investments" they could make.

Thus, they will advance toward implementing the goals of the 2015 Paris climate deal and "take a big step towards clean energy and a healthy natural world - which ultimately is the best insurance policy against global pandemics," the report maintains.