BAKU, Azerbaijan, Nov.17
By Leman Zeynalova – Trend:
Global energy demand is expected to increase by about 4 percent in 2021, returning to pre-pandemic levels as economic activity rebounds, Trend reports with reference to the International Energy Agency (IEA).
“The previous year was one of the worst ever for efficiency improvement, as energy demand and prices fell, technical efficiency enhancements slowed and the balance of economic activity shifted away from less energy-intensive services, such as hospitality and tourism. With disruptions due to Covid-19 shaping global energy and economic trends in 2020 and 2021, it is still unclear whether this year’s improved energy intensity will signal the start of a sustained recovery,” reads the latest IEA report.
However, the report shows that increased investment trends, rising government spending on efficiency - in large part related to recovery plans enacted in response to COVID-19 crisis, new announcements of higher climate ambition and other policy measures offer some encouraging signals.
“The economic recovery in 2021 has increased demand for commodities, putting pressure on supply chains, and creating shortages and bottlenecks for goods and services essential for energy efficiency investment. This has pushed up prices for everything from basic construction materials to semiconductors used in electronics and vehicles. It has also slowed down building completions in some countries due to lack of key supplies. For example, in the second quarter of 2021 lumber prices in the United States were 120 percent higher than in January 2019, though have since cooled off. Steel prices in August 2021 were also more than 60 percent higher than in January 2019. In the United Kingdom, a survey of contractors indicated supply constraints for cement, electrical components, timber, steel and paints. Wages in the construction sector rose by up to 13 percent in the year to May 2021 in some markets, adding to project costs.”
---
Follow the author on Twitter: @Lyaman_Zeyn