Defining deep decarbonization pathways for Switzerland: An evaluation based on GEMINI-E3

Similar documents
Deep Decarbonization Pathway Case: Indonesia Energy Sector

Assessment of Japan s NDC and long-term goal

A b u D h a b i 3rd 5th June 2015

Ian Parry. Fiscal Affairs Department, IMF Renewables in Transport: How to Gain Market Share in a Difficult Environment Brussels, May 11, 2016

Assessment of Japan s INDC Using AIM/Enduse[Japan]

Harmonizing the Bottom-up TIMES and the Top-down GEMINI-E3 Models: Characteristics of the Reference Case and Coupling Methodology

Coal in China: Industrial Efficiency and China in the Global Context. Deborah Seligsohn World Resources Institute October 5, 2010

Are There Limits to Green Growth?

! The!G20!states!!! Selected!official!energy!and!climate!targets:!! Renewable!Energy,!Energy!Efficiency!and!GHG!(CO2)!emissions!!!!!

The role of spatial and technological details for energy/carbon mitigation impacts assessment in Computable General Equilibrium models

Energy Efficiency Market Report 2016

Medium Term Renewable Energy Market Report Michael Waldron Senior Energy Market Analyst Renewable Energy Division International Energy Agency

Future Direction of AIM

Updated emissions scenarios without measures

Ian Parry. Fiscal Affairs Department, IMF The Energy Transition, INDCs and the Post-COP21 Agenda, Marrakech, September 8-9, 2016

Evaluations on the emission reduction efforts of Nationally Determined Contributions (NDCs) in cost metrics

INDCs and 2 C trajectories

Coupling bottom-up & top-down models for simulations of international energy policy

shutterstock Geothermal Energy in Switzerland Recent policy developments

The importance of energy and activity data for technology policy modeling

Session SBI41 (2014)

DEVELOPING THE ENERGY-RELATED BRAZILIAN NATIONALLY DETERMINED CONTRIBUTION (NDC)

International Emissions Scenarios: The Role of Developing Country Participation

The G8 Climate Change Initiative: What it means for building performance

Medium Term Renewable Energy Market Report 2013

Harmony the Role of Nuclear Energy to meet electricity needs in the 2 degree scenario

Global Carbon Finance (GLOCAF) model

Linking electricity prices and costs in bottom-up top-down coupling under changing market environments

Transport Outlook 2012

Impacts of climate change on heating and cooling: a Worldwide estimate from energy and macro-economic perspectives

Center on Global Energy Policy Columbia University New York NY, October 15, Philippe Benoit Head, Energy Efficiency and Environment Division

RENEWABLE ENERGY DEPLOYMENT AND FINANCIAL DE-RISKING

Emissions Intensity CHAPTER 5 EMISSIONS INTENSITY 25

Kyoto Protocol and Carbon Market Drivers

Countries with highest potential for solar process heat The cases of France and Morocco

Harmony The role of nuclear energy meeting electricity needs in the 2 degree scenario. Agneta Rising Director General

WORLD ENERGY OUTLOOK Dr. Fatih Birol Chief Economist Head, Economic Analysis Division

Feasible Climate Targets. Richard Richels International Energy Workshop June 17, 2009 Venice, Italy

Innovation benefits from nuclear phase-out: Can they compensate the costs?

Renewable Energy and other Sustainable Energy Sources. Paul Simons Deputy Executive Director International Energy Agency

Electricity and Decarbonization U.S. Perspective

PATHWAYS TO DEEP DECARBONISATION

Limited Sectoral Trading between the EU-ETS and China

Evaluation of the Copenhagen Accord pledges and beyond

A Canadian Perspective On The Use Of CGE Analysis For Assessing Comparable Effort. Workshop on Mitigation Potential/Comparable Efforts

An assessment of carbon leakage in the light of the COP-15 pledges.

Energy Price Reform: A Guide for Policymakers

Paris Agreement: From Low Carbon to Decarbonization

Emission Pathways, Mitigation Costs and the Economic Impacts

Greenhouse Gas Emissions Mitigation in G20 countries and Energy Efficiency

Low Carbon Society (LCS) ~ Designing Asian scenarios towards Low Carbon Societies ~

Real-world low-carbon policy packages for the energy sector

Ad-hoc Working Group. Round Table. on Mitigation Potentials. Risks and Uncertainties

Reconciling top-down and bottom-up energy/economy models: a case of TIAM-FR and IMACLIM-R

Wir schaffen Wissen heute für morgen

World Energy Outlook 2010 Renewables in MENA. Maria Argiri Office of the Chief Economist 15 December 2010

Cross-border effects of climate change mitigation in a multi-regional input-output framework

CCI/IA Workshop, Snowmass, July 31 st, 2009

Summary of the California State Agencies PATHWAYS Project: Long-term Greenhouse Gas Reduction Scenarios

World Energy Outlook 2010

Sustainability, neutrality and beyond. framework of Swiss post-2012 climate policy

Transformation towards a sustainable European Energy System Which Roadmaps?

Renewables after COP-21 A global perspective. Dr. Fatih Birol Executive Director International Energy Agency

Politique et sécurité énergétique dans le contexte des nouvelles énergies

New energy realities

The Use of Energy Statistics to Estimate CO 2 emissions

Chapter 4 Eighty Percent Reduction Scenario in Japan

RIETI BBL Seminar Handout

China s Progress in Energy Efficiency and. CHINA JAPAN U.S. Cooperation

Global trends in Renewables and the Chilean context

John Gale General Manager IEA Greenhouse Gas R&D Programme

INTERNATIONAL POLITICAL ECONOMY OF CLIMATE CHANGE/DECARBONIZATION IN 2017 FAPESP, São Paulo June 19 th 2017

Reference scenario with PRIMES

As discussed in Chapters 2 and 5, energy fuel

Roadmap for Solar PV. Michael Waldron Renewable Energy Division International Energy Agency

Long-Term Policy: Concepts, Methods, Industry Practice

Energy & Climate Change ENYGF 2015

Energy Effiency: A Key Strategy for Climate Goals. 11 th of December 2015 Espaces Génération climat

World Economic Dynamics (WED) Model: Oil consumption modeling and forecasting

Linking INDCs and Agenda A sustainability analysis

Energy Efficiency Indicators: The Electric Power Sector

What is the Energy of the Future? Nicolas Meilhan Principal Consultant, Frost & Sullivan

GE OIL & GAS ANNUAL MEETING 2016 Florence, Italy, 1-2 February

Stabilization and the Energy Sector. Geoffrey J. Blanford, Ph.D. EPRI, Global Climate Change EPRI Washington Climate Seminar May 18, 2010

Measuring Emission Reduction Efforts of the INDCs and the Expected Global Emission Reductions and Economic Impacts

Energy Efficiency: The Win Win Solution for Energy Security and Sustainable Development

APEC Energy Demand and Supply Outlook, 6 th Edition

Judi Greenwald Principal Greenwald Consulting

Nuclear is part of the solution for fighting climate change

Energy system modeling. Fredrik Hedenus Energy and Environment Physical Resource Theory Chalmers

CO 2 CAPTURE PROJECT (CCP4) Role of CCS in the Energy Transition. 5 th December 2018 Vicky Hudson

Understanding INDCs. Overview of the MILES Project. Thomas Spencer, IDDRI [And the whole MILES consortium!]

Energy Technology Perspectives

PrimePCR Pricing and Bulk Discounts

International Cooperation on Climate Change in the UNFCCC Framework

Renewables for Africa and for the World

Sectoral integration long term perspective in the EU energy system

Comparing the main indicators for population, GDP, energy, CO2 and electricity of dynamic economies: South Korea, Iran, Thailand, Turkey

Hao Jia (Dr.), Researcher, APERC Takashi Otsuki (Mr.), Researcher, APERC* Kazutomo Irie (Dr.), General Manager, APERC. *Corresponding author

IEA Buildings Webinar Series Webinar 4 Modeling and Data Peer Review

Transcription:

Defining deep decarbonization pathways for Switzerland: An evaluation based on GEMINI-E3 Frédéric Babonneau - Philippe Thalmann - Marc Vielle marc.vielle@epfl.ch École Polytechnique Fédérale de Lausanne June 2015 - Melbourne 18th Annual GTAP conference

The Deep Decarbonization Pathways Project Collaborative initiative to understand and show how individual countries can transition to a low-carbon economy and how the world can meet the internationally agreed target of limiting the increase in global mean surface temperature to less than 2 Celsius Managed by the Sustainable Development Solutions Network and the Institute for Sustainable Development and International Relations The DDPP comprises 16 countries: Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, South Africa, South Korea, the UK, and the USA http://unsdsn.org/what-we-do/deep-decarbonization-pathways/

Objective of the DDPP Explore national pathways to 2050 Consistent with the 2 C global carbon budget Technologically transparent Sectorally disaggregated Consistent with physical constraints (e.g. geological potential for CCS, technical potential for renewables) Provide basis for socio-economic impact analysis and policy implementation

Swiss contribution to DDPP Swiss administration decided to contribute to the DDPP A working group is dedicated to this task and managed by the Federal Office for the Environment INFRAS and EPFL are in charge to elaborate the Swiss DDP The Swiss climate target assumes a CO 2 emissions target of 1 ton per Swiss inhabitant in 2050 The GEMINI-E3 model is used for the modeling part

Swiss CO 2 law Target: -20% wrt 1990 levels for all GHGs GHG emissions: 50 Mt-eq CO 2 CO2 compensation 20 International aviation CO2 tax 15 Other transport Specific measures 10 Swiss ETS 5 Cars Exempted Others N2O CH4 0 CO2 transport CO2 stationnary sources CO2 residential Other GHGs Stationary sources CO 2 tax (current level 60 CHF), but exemption and Swiss ETS Subsidies on buildings refurbishment and renewable energies Transport: motors fuels compensation 2% (10% in 2020) of CO 2 emissions + performance standards for new cars

The GEMINI-E3 model World computable general equilibrium model Dedicated to the analysis of climate change & energy policies Recursive dynamic model Closure rules: Trade balances cleared, Government budget cleared, exogenous labor supply All GHG emissions Database GTAP 8 (2007) gemini-e3.epfl.ch

The two storylines The first one, called reference scenario, assumes that Switzerland will reach a 20% reduction of GHG emissions relative to 1990 levels by 2020, using instruments that have already been defined. After 2020, we suppose that no additional policy will be implemented but the existing instruments would remain applied with their 2020 levels The other ones, called the DDP scenarios, assume that Switzerland will reach by 2050 a CO 2 emissions target equal to 1 ton of CO 2 per inhabitant

Assumptions after 2020 Reference scenario 1 The carbon prices (ETS price, CO 2 tax) and levy charged on fuels for transport remain constant and equal to their 2020 levels 2 The buildings refurbishment program remains constant at its 2020 levels 3 CO 2 emissions standard for new cars remains constant at its 2020 levels DDP scenarios 1 CCS option becomes available in 2025, price 100 $ per ton of CO 2 2 The buildings refurbishment program is removed after 2020 3 The CO 2 prices (ETS price, carbon tax) and the levy charged on fuels for transport are replaced by a uniform carbon tax applied to all energy consumption and set at a gradually rising rate sufficient to reach the CO 2 target by 2050

Swiss CO 2 emissions in the two scenarios in Mt CO 2 50 45 1990 40 35 30 25 20 15 10 Historical values DDP Reference 5 0 1970 1980 1990 2000 2010 2020 2030 2040 2050

Reference scenario: CO 2 prices Table: CO 2 prices and other levy in CHF 2013 - Reference scenario 2020 2030 2040 2050 CO 2 tax 60 60 60 60 CO 2 ETS price 40 40 40 40 Levy on fuel transport 0.02 0.02 0.02 0.02 In 2050, CO 2 emissions = -34% wrt 1990 levels

Reference scenario: Electricity generation in TWh 80 70 60 50 40 30 20 Renewable Natural Gas Nuclear Hydro 10 0 2007 2020 2030 2040 2050 Nuclear = 27 TWh Max new renewable potential 27 TWh

DDP scenario: CO 2 tax and welfare cost Table: CO 2 prices and other levy in CHF 2013 - DDP scenario 2020 2030 2040 2050 CO 2 tax 60 CO 2 ETS price 40 Levy on fuel transport 0.02 Uniform CO 2 tax 257 654 1556 Welfare cost in % of HC 0.4% 0.9% 1.7% HC: Household consumption

DDP scenario: CO 2 emissions in Mt CO 2 45 40 35 30 25 20 15 10 5 0 1990 2007 2020 2030 2040 2050 Other Household residential Other transports Road transport ETS In 2050: ETS -81%, Residential -78%, Road trans. -67%, Other transports -19%

DDP scenario: Electricity consumption in TWh 100 90 80 70 60 50 40 30 20 10 0 2010 2020 2030 2040 2050 Electric mobility other sectors Electric mobility households Households residential Transport Other industries and services Energy intensive industries In 2050, Electricity consumption +15%, +12 TWh (+6 TWh electric mobility)

DDP scenario: Electricity generation in TWh 100 80 60 40 20 Renewable Natural gas Nuclear Hydro 0 2007 2020 2030 2040 2050

DDP scenario and CCS In 2050, 21 TWh produced with natural gas with CCS 2025-2050: CO 2 sequestered = 77 Mt of CO 2 But uncertainties surrounding CCS (technological, feasibility...) Social acceptability? Energy intensity -45% wrt 2010 but electricity +15% Try to run a scenario without CCS or with a constraint on electricity consumption

Electricity generation in TWh - year 2050 100 80 60 40 Renewable Natural gas Hydro 20 0 Reference DDP DDP wo CCS

DDP scenario without CCS: CO 2 tax and welfare cost Table: CO 2 prices and other levy in CHF 2013 - DDP scenario without CCS 2020 2030 2040 2050 CO 2 tax 60 CO 2 ETS price 40 Levy on fuel transport 0.02 Uniform CO 2 tax 324 1040 2652 Welfare cost in % of HC 0.4% 1.0% 1.9%

DDP scenario without constraint on electricity consumption Planned amendment of the Swiss Energy Act target on electricity consumption per capita -3% in 2020 and -13% in 2035 wrt 2000 levels 2050: -18% wrt 2000 levels in 2050 63 TWh New tax on electricity consumption

Electricity generation in TWh - year 2050 100 80 60 40 20 Renewable Natural gas Hydro 0 Reference DDP DDP wo CCS DDP w elec. targert

DDP scenario with a constraint on electricity consumption: CO 2 tax and welfare cost Table: CO 2 prices and other levy in CHF 2013 - DDP scenario with a constraint on electricity consumption 2020 2030 2040 2050 CO 2 tax 60 CO 2 ETS price 40 Levy on fuel transport 0.02 Uniform CO 2 tax 299 787 1963 Electricity tax 18% 41% 88% Welfare cost in % of HC 0.4% 0.6% 1.5%

Conclusion 1 It is possible to reduce Swiss CO 2 emission to 77% below 1990 levels 2 The cumulative cost is estimated to around 1% of household consumption 3 This pathway requires significant changes in all energy consuming sectors (building, industry, transport) 4 The pathway requires significant deployment of new technologies with new infrastructures, our modeling exercice use optimistic assumptions (without technical barriers) 5 The Swiss nuclear moratorium creates this DDP scenario very challenging with a high deployment of renewable (non dispatchable generation) in electricity generation 6 We propose two different pathways: with/without electricity increase