Headline: RIFS Blog April 2020

The corona pandemic caught our society off guard. That is one reason for the scale of the crisis. This makes it all the more important to learn from the current situation, not least in the area of climate and energy policy. In what follows, I discuss the lessons we can draw from the crisis in reflections clustered around the terms vulnerability, resilience and solidarity.

The current outbreak of the new coronavirus (SARS-CoV-2) will affect virtually every person on Earth, either directly or indirectly. Many people will die of the infectious disease caused by this coronavirus (Covid-19), and others will lose people close to them. Many more will suffer other extreme hardships – psychological, social and financial – due to the extensive physical distancing measures that are reducing the spread of the virus. While there may be some perceived “silver linings”, such as temporarily reduced air pollution and CO2 emissions, and for some an opportunity to slow down and contemplate their ways of living, in the balance the effects are already tremendously challenging for the world, and are likely to get much worse before the pandemic is over.

The Europe-wide shutdown is reducing both energy consumption and carbon dioxide emissions. At first glance, this might seem like good news. But it has also caused CO2 certificates traded under the European Union Emissions Trading System to lose a third of their value since March. Economic activity is expected to be significantly depressed over the coming weeks and months and production capacities underused.