Investment in global energy will fall by $400bn (£324bn) this year, the biggest slump in the industry’s history, as the Covid-19 pandemic fuels a collapse in energy demand.
The International Energy Agency (IEA) said the unprecedented investment slump follows the most severe plunge in energy demand since the second world war. The price of oil suffered an historic market crash last month when US oil prices turned negative for the first time.
The IEA said the decline in investment is “staggering in both its scale and swiftness” and will impact every major sector, from fossil fuels such as oil, gas and coal to renewable sources including wind and solar power.
In a report, the IEA said the decline in investment in areas such as clean energy technology could undermine the transition to renewable, sustainable sources of energy.