The impact of the COVID-19 crisis on the European Green Deal
In this report, the Energy Policy Group (EPG) examines the impact of the Covid-19 crisis on the European Green Deal and puts a focus on Romania and Southeast Europe.
The COVID-19 outbreak prompted governments worldwide to impose unprecedented restrictions on travel and economic activity. Coupled with a drop in global oil prices, which it largely caused, this crisis is producing imbalances in the energy sector, affecting both investments and the transition to decarbonisation. The dip in carbon prices, also a result of lower energy demand, shows the adversarial impact that the coronavirus crisis can have on the recently launched European Green Deal.
The authors conclude that, in order to address this multifaceted crisis, an economic recovery plan should be designed to take into account both the more limited resources for countries in the Southeast Europe and the need to safeguard long-term climate objectives. Emergency short-term solutions for combatting the immediate social and economic risks of the coronavirus crisis should be combined with a set of policy and regulatory revisions that can ensure a smooth and sustainable post-crisis recovery.