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Four energy policies can keep the 2 °C climate goal alive
Press Release, International Energy Agency (IEA)
Warning that the world is not on track to limit the global temperature increase to 2 degrees Celsius, the International Energy Agency (IEA) today urged governments to swiftly enact four energy policies that would keep climate goals alive without harming economic growth.
“Climate change has quite frankly slipped to the back burner of policy priorities. But the problem is not going away – quite the opposite,” IEA Executive Director Maria van der Hoeven said in London at the launch of a World Energy Outlook Special Report, Redrawing the Energy-Climate Map, which highlights the need for intensive action before 2020.
Noting that the energy sector accounts for around two-thirds of global greenhouse-gas emissions, she added: “This report shows that the path we are currently on is more likely to result in a temperature increase of between 3.6 °C and 5.3 °C but also finds that much more can be done to tackle energy-sector emissions without jeopardising economic growth, an important concern for many governments.”
New estimates for global energy-related carbon dioxide (CO2) emissions in 2012 reveal a 1.4% increase, reaching a record high of 31.6 gigatonnes (Gt), but also mask significant regional differences. In the United States, a switch from coal to gas in power generation helped reduce emissions by 200 million tonnes (Mt), bringing them back to the level of the mid‑1990s. China experienced the largest growth in CO2 emissions (300 Mt), but the increase was one of the lowest it has seen in a decade, driven by the deployment of renewables and improvements in energy intensity. Despite increased coal use in some countries, emissions in Europe declined by 50 Mt. Emissions in Japan increased by 70 Mt.
The new IEA report presents the results of a 4-for-2 °C Scenario, in which four energy policies are selected that can deliver significant emissions reductions by 2020, rely only on existing technologies and have already been adopted successfully in several countries.
“We identify a set of proven measures that could stop the growth in global energy-related emissions by the end of this decade at no net economic cost,” said IEA Chief Economist Fatih Birol, the report’s lead author. “Rapid and widespread adoption could act as a bridge to further action, buying precious time while international climate negotiations continue.”
In the 4-for-2 °C Scenario, global energy-related greenhouse-gas emissions are 8% (3.1 Gt CO2‑equivalent) lower in 2020 than the level otherwise expected.
- Targeted energy efficiency measures in buildings, industry and transport account for nearly half the emissions reduction in 2020, with the additional investment required being more than offset by reduced spending on fuel bills.
- Limiting the construction and use of the least-efficient coal-fired power plants delivers more than 20% of the emissions reduction and helps curb local air pollution. The share of power generation from renewables increases (from around 20% today to 27% in 2020), as does that from natural gas.
- Actions to halve expected methane (a potent greenhouse gas) releases into the atmosphere from the upstream oil and gas industry in 2020 provide 18% of the savings.
- Implementing a partial phase-out of fossil fuel consumption subsidies accounts for 12% of the reduction in emissions and supports efficiency efforts.
The report also finds that the energy sector is not immune from the physical impacts of climate change and must adapt. In mapping energy-system vulnerabilities, it identifies several sudden and destructive impacts, caused by extreme weather events, and other more gradual impacts, caused by changes to average temperature, sea level rise and shifting weather patterns. To improve the climate resilience of the energy system, it highlights governments’ role in encouraging prudent adaptation (alongside mitigation) and the need for industry to assess the risks and impacts as part of its investment decisions.
The financial implications of climate policies that would put the world on a 2 °C trajectory are not uniform across the energy sector. Net revenues for existing renewables-based and nuclear power plants increase by $1.8 trillion (in year-2011 dollars) collectively through to 2035, offsetting a similar decline from coal plants. No oil or gas field currently in production would need to shut down prematurely. Some fields yet to start production are not developed before 2035, meaning that around 5% to 6% of proven oil and gas reserves do not start to recover their exploration costs. Delaying the move to a 2 °C trajectory until 2020 would result in substantial additional costs to the energy sector and increase the risk of assets needing to be retired early, idled or retrofitted. Carbon capture and storage (CCS) can act as an asset protection strategy, reducing the risk of stranded assets and enabling more fossil fuel to be commercialised.
Link WEO special report Redrawing the Energy-Climate Map.
(11 June 2013)
Big alarm bells here which are being picked up in the press, but the IEA has been ringing these for a couple of years now. Also interesting to see the IEA picking up on the fossil fuels as ‘stranded assests message. Surely there is a big risk though that the message that "much more can be done to tackle energy-sector emissions without jeopardising economic growth" risks just embedding inaction – you have to ask, if it’s that easy, why the hell isn’t it happening already?- SO
Waiting on new climate deal ‘will set world on a path to 5C warming’
Fiona Harvey, The Guardian
The world cannot afford to wait for a new global climate change agreement to come into force in 2020, because doing so will mean an end to hopes of limiting global warming to moderate levels, one of the world’s foremost authorities on energy has warned.
Carbon dioxide emissions from energy rose by 1.4% in 2012 to a record high of more than 31bn tonnes, according to a report from the International Energy Agency on Monday, driven in part by a striking 6% rise in emissions from Japan following its phase-out of nuclear power and continuing growth in emissions from China.
Fatih Birol, chief economist at the IEA, and one of the world’s most respected energy experts, told the Guardian that greenhouse gas emissions were continuing to rise so fast that pinning hopes on a replacement for the Kyoto protocol would set the world on a path to 5C of warming, which would be catastrophic.
Birol urged governments to take urgent action on improving energy efficiency, replacing fossil fuels with low-carbon power, stopping the construction of inefficient power plants and phasing out fossil fuel subsidies, as low or no-cost ways of reducing emissions quickly. "This will not harm economic growth, and they are policies that can be taken in a fragile economic context," he said…
Birol said: "I am very worried about the emissions trends. The chance of keeping to 2C is still there, technically, but it is not very great. It is becoming extremely challenging."
(10 June 2013)
The Burning Question by Mike Berners-Lee and Duncan Clark – review
Peter Forbes, The Guardian
Peter Forbes on a book showing how the City has already factored burning all available fossil fuels into share prices.
…Beyond its raw facts about emissions, this book’s great contribution to the debate is to point out that the markets are gambling trillions of dollars on a bet that governments will never seriously curb carbon emissions. How do they know this? Because to address climate change would mean leaving most of the remaining fossil carbon in the earth. But that would entail the future value of the fossil-fuel energy companies falling to a fraction of their present valuation: current share prices declare that no climate mitigation will happen. However, sudden action may be forced on governments by a period of catastrophic climate damage and food shortages. This would cause a global collapse of the energy industry greater than the crash of 2007-08. Something will have to give. If the markets are playing their usual game – we know a bubble will burst but that’s OK because we’ll get out in time – they are gambling with the lives of hundreds of thousands of people and the livelihoods of billions.
The second vital contribution to the argument is the revelation that so far the switch to renewables has had no effect on global carbon emissions, which are increasing by about 3% a year. New technologies have often not supplanted the old but simply added to the mix: the appetite of the world’s population for burning energy, including carbon energy, is insatiable….
(31 May 2013)