The coronavirus outbreak has been decimating the fossil fuel sector, which is expected to see a drop of £20tn according to a report published earlier last week by Carbon Tracker’s Kingsmill Bond. WhichEV investigates the findings and how governments are planning recovery funds focusing on green investments.
The study found that the value of fossil fuel globally might decrease by two-thirds, as oil, gas and coal demand is expected to fall sooner than the industry forecast. The future profits for fossil fuels firms went down from an estimated $39tn to $14tn.
Clean mobility seems to be the big driver of the future of the automotive sector. Earlier last month, the European Commission highlighted how the recovery plan will be a green one, focusing on renewables, among others, to achieve deep decarbonisation.
The EU is purportedly offering a scheme for renewable electricity projects to provide 15GW over 2 years, with a capital investment of €25bn. But there will also be an EU Purchasing Facility for Clean Vehicles scheme, which aims to reduce emissions in line with EU standards, amounting to €20bn in the next two years. On top of that, the EU is planning investment in electric car charging points and aims to reach 2 million public charging facilities or alternatives by 2025. Angela Merkel's government has also ruled that all petrol stations in Germany must have EV charging, too.
But green investments do not stop in the EU. In the UK, on the daily coronavirus press conference of the 3rd of June, Prime Minister Boris Johnson, when discussing the UK car sector, focused on the green developments he would like to see in the industry.
Prime Minister, Boris Johnson said: “That’s what we want to champion. That’s the future.” He further added that the government had just invested £108m into the UK Battery Industrialisation Centre, a battery testing facility due to open in Coventry later this year.
Green energy and clean mobility are coming out stronger after the pandemic. WhichEV will be watching with interest the outcomes of these green recovery funds and the impact they will have on the EV sector.