Climate change and the global energy transition Dave Turk Acting Director Directorate of Sustainability, Technology and Outlooks
Global emissions stagnate, but there are regional variations Change in annual energy-related CO₂ emissions, 2016 +1.6% +6.6% +1.9% +2.7% GDP growth Mt 300 200 100 0-100 United States China European Union Rest of World Change in CO₂ emissions -200 CO₂ emissions declined in the US, China & EU offsetting an increase in most of the rest of the world
Going forward Energy sector changes brighten the prospects for affordable, sustainable energy & require a reappraisal of approaches to energy security: Solar PV is on track to be the cheapest source of new electricity in many countries China is switching to a new economic model & a cleaner energy mix Electricity is broadening its horizon, spurred by cooling, electric vehicles & digitalisation Yet many problems remain unresolved climate change, energy access and air pollution
China energy growth slows Change in energy demand, 2016-40 (Mtoe) United States -30 Central and South America 270 Europe -200 Middle East Africa 485 480 135 Eurasia India 1 005 China 790 Japan -50 Southeast Asia 420 Old ways of understanding the world of energy are losing value as countries change roles: the Middle East is fast becoming a major energy consumer & the United States a major exporter
.. A as world China motion.. moves global energy markets, again Change in world energy demand by fuel 2 500 Coal (Mtce) 30 Oil (mb/d) 2 000 Gas (bcm) 2 000 Low-carbon (Mtoe) 2 000 24 1 600 1 600 1 500 18 1 200 1 200 1 000 12 800 800 500 6 400 400 0-500 1990-2016 2016-40 1990-2016 2016-40 1990-2016 2016-40 China 1990-2016 2016-40 Other countries 1990-2016 2016-40 Low-carbon sources & natural gas meet 85% of the increase in global demand: China s switch to a new economic model & a cleaner energy mix drives global trends
Air pollution is an energy problem Change in air pollutant emissions in the New Policies Scenario, 2016-2040 60% 30% 0% SO 2 NO X PM 2.5-30% -60% European Union China India Southeast Asia Rest of world Emissions of the main air pollutants fall in many regions, but ageing populations and urbanisation increase related health impacts
A new strategy for energy & sustainable development GtCO 2 40 Global CO 2 emissions by scenario New Policies Scenario 30 Sustainable Development Scenario 20 10 Sustainable Development Scenario 2000 2010 2020 2030 2040 The Sustainable Development Scenario reduces CO 2 emissions in line with the objectives of the Paris Agreement, while also tackling air pollution and achieving universal energy access
Stronger policies for a more sustainable world 875 million electric vehicles The Sustainable Development Scenario in 2040 2times more efficient than today 3 250GW global solar PV capacity 580bcm additional gas demand Only 15% additional investment is required to 2040 to achieve the Sustainable Development Scenario, with two-thirds of energy supply investment going to electricity generation & networks
China leads the push for new energy technologies China s share of cumulative global investment in low-carbon technologies, 2017-2040 Electric vehicles Wind Solar PV Nuclear 10% 20% 30% 40% 50% The effects of the energy transition are reflected in its high shares of global investment in a range of low-carbon technologies
Conclusions China continues to shape global trends, but in new ways as its energy revolution drives cost reductions for a wide range of clean energy technologies The IEA strategy for sustainable development shows that concerted action to address climate change is fully compatible with global goals on universal access & air quality Achieving the combined sustainable development goals requires a step change in policy efforts, but can be done at relatively little extra cost China is making big steps to achieve such a cleaner energy future; the wider policy goals, including the Energy Revolution strategy, are important signposts for China s future travel; need for integrated policy packages and systems integration
iea.org/weo