Energy is critical to global prosperity, as it underpins
economic growth, social development, and poverty
reduction. It has fuelled global economic development
since the industrial revolution, and countries aspire to further inclusive economic growth. However, with
more than 80% of global energy sourced from fossil
fuels, growing energy demand has led to increasing
greenhouse gas emissions. Today’s challenge is to
decouple economic growth and social development from
increasing emissions. This requires action by central
and local governments, publicly and privately owned
businesses, communities & individuals
With concerted efforts, energy emissions could fall
19% by 2030 instead of rising by 30%
Energy sector emissions
The energy sector generates approximately two thirds of
global greenhouse gas emissions and over 80% of total
CO2. It produced 31.7 Gt of CO2 in 2012, the largest share
of which came from power generation. If current energy
policies remain unchanged, emissions will continue to
grow, driven by increases in non-OECD countries and
steady OECD emissions. Challenges to this transition include locked-in
infrastructure, short-term market conditions favouring
coal, fossil fuel subsidies, and inadequate carbopricing. Solutions lie in greater efficiency and switching
to cleaner energy sources. This document sets outfive priorities for immediate action: interventions with
short-term impact, a focus on electricity emissions, long-
sighted investment and innovation, and mobilising other
goals in service of decarbonisation. Finally, while working
to limit temperature rise, the energy sector needs to be
more resilient to a changing climate.
1. Seize the benefits of immediate action
to bend the global emissions curve
To 2020, bridging 80% of the gap to an optimal
2°C path comes at no extra GDP cost
2. Focus on electricity decarbonisation
To propel power sector decarbonisation forward, strong
policies with wide reach are required. Carbon pricing
(including carbon taxes and emissions trading) is
critical, and is being used increasingly in developed and
developing countries. A challenge will be to achieve the
high carbon price levels needed to shift plant investment
and retirement decisions. Regulation (such as fleetwide or
individual technology performance standards) can also be
a useful, pragmatic policy tool.
Strong policies supporting low-carbon electricity could
more than halve electricity emissions in 2030
3. Reshape investment and accelerate innovation
now in low-carbon technologies
Lowering emissions will require shifting energy supply
investment from fossil fuels to clean energy, and
mobilising additional investments in energy efficiency.
These investments will be most cost effective and
impactful when coupled with innovation in technological
development and deployment. While investment and innovation actions may not significantly impact
short-term emissions, they are essential to long-term
decarbonisation.
Multilateral collaboration is critical to the development and tailoring of
nationally appropriate technology solutions
4. Mobilise non-climate goals to promote
energy sector emission reductions
Climate change policies are not the only catalyst for
energy sector decarbonisation: there are a number
of motives for introducing cleaner energy supplies or
reducing energy demand that also lead to
GHG emission reductions:
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Air quality and the associated public health efforts to improve
air quality by targeting energy efficiency, conventional coal
generation, and transport emissions.
-
Energy security and initiatives to diversify energy sources and
reduce energy dependence through vehicle fuel economy,
generation diversity, renewable energy development, and
energy efficiency.
-
Reduced road congestion and measures to improve public
transit and land-use planning to achieve net mobility benefits
along with net reductions in transport spending, energy use,
and emissions.
-
Growth and sustainable economic development, including
increased green energy productivity, power generation
efficiency to support access, research and development of
such technologies as nuclear energy, renewable energy, low
or zero energy buildings, and efficient transport modes that
create new jobs.
-
Quality of life improvements through upgrades in city
infrastructure, including efficient and expanded public
transport, and more efficient and comfortable buildings.
-
Stronger government budgets and related initiatives to phase
out fossil fuel subsidies that put strain on budgets (in 2013,
global fossil fuel subsidies totalled USD 550 billion).5. Strengthen energy sector resilience
to climate change
Press link for more: IEA.org
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