March 27, 2020

Pandemic Emissions: Update in Light of COVID-19

Emissions in China drastically reduced during the COVID-19 outbreak. Financial market turmoil has left prices to emit in Europe drastically cheaper and has affected long-term forecasts. Dorights subscriptions become even more effective.

When the world stops so does emissions.​ In China emissions were drastically reduced during the COVID-19 outbreak. Many argue that consumers have to buy less and travel less to combat climate change. The data from China obviously points to the fact that if we reduce production and cut travel emissions will drop.

 

This is not the way the world should go. It is possible to lead a modern life with all our devices and desires to see the world without harming the environment. The future should not limit or hinder the development of quality of life. Instead we engineer and construct new technology or methods to continue our lives as we want to, but smarter and in harmony with nature.

 

Turmoil in the financial markets has made fossil cheaper.​As oil prices drop and the price of emission allowances do too unsustainable behaviour is rewarded. Oil prices are at a level not seen in 2003, long before any financial crisis. The price of emission allowances has dropped more than 30 %.

 

As fossil fuels become cheaper to use it puts further pressure on sustainable solutions financial comparability. Cheaper gasoline means that internal combustion engines are cheaper and that electric vehicles in comparison are more expensive, among other things. Similarly, lower prices on emission allowances increases the competitiveness of coal fired power plants.

 

A small silver lining​ is that every Dorights subscription will reduce even more CO​ 2 from the atmosphere. As the prices of emission allowances drop we can purchase even more of them for the same amount of money, further improving the impact all our subscribers have.