* Emissions showed biggest fall in over 75 years
* Energy demand fell 4.5% in 2020, oil demand down 9.3%
* BP says changes in 2020 likely to prove transitory
* World needs "tangible" action to hit climate goals
By Ron Bousso
LONDON, July 8 (Reuters) - Wind and solar power capacity
expanded rapidly in 2020 while global energy demand cratered
because of the pandemic, yet this did not yet reflect a
"decisive shift" towards meeting U.N.-backed climate goals, BP
said in its annual energy review.
Last year witnessed the biggest fall in carbon emissions in
more than 75 years, putting the world closer to the path needed
to hit a target of keeping global warming below 2 degrees
Celsius this century, BP's 2020 Statistical Review said.
"Importantly, there was no sign of the decisive shift
envisaged" by the less than 2 degrees Celsius scenario, BP Chief
Economist Spencer Dale said in remarks ahead of the release of
the review, seen as a benchmark for the industry.
"There is a good chance that much of that dip proves
transitory," he said, adding that changes in 2020 were induced
by the pandemic and the world still needed "tangible, concrete
differences" to meet climate targets.
The economic slowdown in 2020 as countries sought to contain
the pandemic led to a 4.5% drop in global energy demand, driven
mostly by a 9.3% collapse in oil consumption, the review said.
At its lowest point in April 2020, oil demand dropped by
around 20% or 20 million barrels per day.
"This is just off the charts relative to anything seen in
history," Dale said, adding that the slide in energy use would
reverse as economies revved up after the COVID-19 crisis.
EMISSIONS
Heat-trapping carbon emissions dropped by 6.3% last year,
the biggest fall since the Second World War, breaking a steady
climb in recent years even as governments were accelerating
their efforts to tackle climate change, the review said.
BP, one of the world's biggest energy companies, itself aims
to reduce emissions from the oil and gas it produces to net zero
by 2050, amid pressure on the energy industry to cut greenhouse
gas emissions.
"The trends we're seeing here are exactly the trends we'd
want to see as the world transitions to net zero - strong growth
in renewables. Crowding out coal is exactly what the world needs
to see," Dale said.
Many oil companies and climate groups have called for
governments to set a price on carbon in order to boost the use
of renewables and low-carbon energy.
In Europe, which has one of the world's most active carbon
trading markets, the price of carbon rose in recent weeks to an
all-time high of more than 59 euros ($69.76) per tonne.
Wind and solar installed capacity increased by a "colossal"
238 gigawatts last year, the review said.
"The increase in installed capacity last year was 50% bigger
than at any time seen in history, despite the world (being) in
turmoil, despite the largest peace-time recession," Dale said.
The growth in renewables last year came largely at the
expense of coal-fired generation, which experienced one of its
largest annual declines on record of 4.4%.
($1 = 0.8458 euros)
(Reporting by Ron Bousso; Editing by Edmund Blair)
BP (BP.)