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Energy Crunch: the global picture

 Three things you shouldn't miss this week

  1. The dwindling emissions budget if we are to limit global warming to no more than 2°C.

    Graphic: International Energy Agency World Energy Outlook 2013
     
  2. Article: Shale’s Effect on Oil Supply Is Not Expected to Last -  According to a report released Tuesday by the International Energy Agency, production of such oil in the United States and worldwide will provide only a temporary respite from reliance on the Middle East.
     
  3. Commentary: Want an energy revolution? Think beyond the big six -  When you own a stake in the energy you use, you use less of it. Solar Schools, part of the 10:10 carbon reduction project, has been a striking example of this.
 
Everything is changing on energy, and yet everything remains the same. This is the message from the latest World Energy Outlook by the International Energy Agency. The report shows shifting global demand and supply patterns, but the overall picture remains one of rising carbon emissions, fossil fuel domination and tight oil markets.
 
Emissions from the energy sector will increase 20% by 2035 based on current policies, putting the world on target for 3.6 degree warming. The urgency of the issue surely couldn’t be more obvious as climate negotiators meet in Warsaw. Typhoon Haiyan can’t be directly linked to climate change, but increasingly powerful storms are one likely predicted effect, and the UN expects 2013 to be the 7th warmest year on record.
 
Fossil fuels still provide 82% of world energy according to the report – the same as 25 years ago. The agency predicts this will have fallen to 76% by 2035, but 76% of a much larger pie. This dominance of fossil fuels is supported by record subsidies of $544 billion in 2012. A new report by the Overseas Development Institute (ODI) shows that fossil fuel subsidies aren’t just a developing world phenomenon. It estimates that OECD countries spend up to $90 billion in fossil fuel support measures, often via tax cuts or exemptions, and calls for G20 governments to phase out all subsidies by 2020 - or 2015 for wealthier nations - while protecting vulnerable groups from the impacts.
 
Not much has changed in the UK energy debate over the past couple of weeks either, but the focus is renewable rather than fossil fuel subsidies, as the government and the Big Six slug it out over ‘green taxes’. It looks increasingly likely that funding for the Energy Company Obligation (ECO), under which energy companies carry out domestic efficiency measures, will move from bills to general taxation as the utilities want. How much relief that would provide, and for how long, is another question entirely.

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