Energy ministers of the world's largest economies reaffirmed their commitment to help the global economy recover from the pandemic during a two-day meeting earlier this week.
"We reaffirm our commitment, made at the G20 Extraordinary Energy Ministers Meeting on April 10, 2020, to ensure that the energy sector continues to make a full, effective contribution to overcoming Covid-19 and powering the subsequent global recovery,” the group said in a communique on Tuesday.
"We stress that the immediate challenges brought about by the pandemic have not dampened our resolve to advance our efforts by exploring a variety of options and utilising the widest variety of technologies and fuels according to national context to ensure a stable and uninterrupted supply of energy to achieve economic growth."
The G20 energy ministers also endorsed the circular carbon economy and committed to reduce emissions for a sustained economic recovery.
Like other sectors, the energy industry has been hit by a slowdown in investments amid the pandemic. Spending on new projects in the oil and gas sector in 2020 is set to decline by 75 per cent, Norway-based Rystad Energy said in a report in July.
The ministers said they would help rebuild the energy sector by creating "the conditions for sustained capital investments, including bolstering investments in innovation, and a skilled work force, to support our common long-term energy security and sustainability goals".
Investments have suffered due to the fluctuating oil price, with Brent crude falling below $20 per barrel in April as concerns about a glut of supply rose at the same time as a demand slump due to movement restrictions to limit the spread of the pandemic. However, action by the Opec+ group to withhold a record 9.7 million barrels per day from the market between May and July, tapered to 7.7 million bpd since, has underscored a gradual recovery. Brent crude was trading 0.33 per cent lower at $42.29 at 4.52pm UAE time on Tuesday, while US benchmark West Texas Intermediate was 0.42 per cent lower at $40.43 per barrel.
Industry bodies and other stakeholders have been urging countries to fast track their clean energy goals following the coronavirus pandemic.
Earlier this month, the International Energy Agency and the Business 20, which represents the business community in the G20, called on countries to accelerate the deployment of existing low-emissions and emissions-neutral technologies.
The IEA estimates global carbon dioxide emissions are expected to be 8 per cent lower this year than in 2019, largely due to the impact of Covid-19. However, the health crisis has also affected funding for energy transition, which is expected to slump 20 per cent this year.
Around $3.5 trillion is required between now and 2050 to meet targets for a “sustainable path”, the IEA said.
Earlier this year, the Paris-based agency said $1tn, or the equivalent of 0.7 per cent of global economic output, is needed over the next three years to sustainably rebuild economies in the wake of the Covid-19 pandemic.
