Energy revolution, key to cutting CO2 emissions

“Different combinations may be required for different countries depending on level of development”To enhance global energy security and foster sustained economic development in the context of tackling climate change, an energy technology revolution is absolutely necessary. Although early signs of such a revolution are visible, more needs to be done to achieve the necessary long-term carbon-dioxide (CO2) cuts, the International Energy Agency (IEA) said while releasing the study report on Energy Technology Perspectives (ETP) 2010 here on July 1.

“Increasing energy efficiency and carbon capture and storage (CCS) would be two key options available to stakeholders including governments,” Mr Nobuo Tanaka, Executive Director of IEA, told media persons.

‘BLUE Map'

IEA's ETP 2010 baseline scenario showed that without new policies fossil fuels will continue to provide most of the world's energy needs, with energy-related CO2 emissions almost doubling to 57 Gigatonnes (Gt) by 2050. However, ETP 2010 report has presented a BLUE Map scenario that charts a least-cost path for halving global energy-related CO2 emissions by 2050 (as compared to 2005 levels), consistent with long-term temperature rise of 2 to 3 degrees Celsius.

Under the BLUE Map scenario, the global demand for oil, gas and coal in 2050 would all be lower than today, substantially reducing the world's dependence on finite fossil resources. The world today is heavily dependent on fossil fuels.Coal, oil and natural gas currently provide 81 percent of global primary energy needs, which in turn leads to significant emissions of climate changing CO2 as well as poses broader environmental, economic and energy security challenges.

Advanced Transport

According to IEA, investment to the tune of $46 trillion would be required for the world to transition to a low-carbon economy, of which the transport sector for advanced vehicle technologies would account for half of the investment. However, lower fossil fuel consumption would result in cumulative fuel cost savings of about $112 trillion, the report pointed out.

‘Mostly Pvt Investment'

To a question as to where such huge investments would come from and who will develop the requisite technologies, Mr Tanaka said that he believed most investment would come from the private sector. But enabling government policies and some incentives may be necessary, he argued, adding that policies have to be transparent and subsidies will have to be phased out over time.

“We need a combination of energy sources. No single source — say, nuclear or biofuels — will succeed. Also, different combinations may be required for different countries depending on level of development,” IEA experts remarked.

While decarbonising the construction/building sector in developing countries is a daunting task, one of the biggest challenges for the world is decarbonising the electricity sector, the second largest source of emission reductions, which must involve dramatically increasing the shares of renewable and nuclear power and adding carbon capture and storage to plants that consume fossil fuels.

“Reducing CO2 emissions will require global effort. While the OECD (Organisation for Economic Co-operation and Development) countries should take the lead, all major economies need to be involved,” the report emphasized. There was also suggestion that governments should manage and moderate demand by designing policies that penalize carbon emissions.

IEA is an autonomous agency with mandate to promote energy security among its member countries through collective responses to physical disruptions in oil supply and to advise member countries on sound energy policy.