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New IEA Report Calls for Energy Revolution to Avoid Climate Catastrophe

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The International Energy Agency (IEA) released today a major new report warning that nothing short of an energy sector revolution is required to protect the world from runaway climate change and a global temperature rise beyond two degrees Celsius.

The temperature refers to the National Aeronautics and Space Administration Global Land-Ocean Temperature Index in degrees Celsius, base period: 1951-1980. The resulting temperature change is lower than the one compared with pre-industrial levels. Sources: Temperature data are from NASA (2013) carbon concentration on data from National Oceanic and Atmospheric Administration Earth System Research Laboratory.

In what is the IEA’s most urgent call for climate action yet, the World Energy Outlook Special Report 2013: Redrawing the Energy Climate Map advocates a “reorientation of an energy system currently dominated by fossil fuels,” and proposes near-term action to clean up the power sector and halt the increase of global emissions by 2020.

It also calls for “transformational” change in energy generation worldwide in the longer term.

IEA Executive Director Maria van der Hoeven said:

Climate change has quite frankly slipped to the back burner of policy priorities. But the problem is not going away—quite the opposite.

This WEO [World Energy Outlook] Special Report is a timely reminder that climate change must remain a permanent and prominent item on the policy agenda. It seeks to outline the intensive action which we need to start implementing today, without waiting to 2020 or later for a global agreement to take effect.

Compared to 2011, energy-related carbon dioxide emissions in 2012 have increased by 1.4 percent.

A new global agreement aimed at meeting this target will not emerge before 2015 and is not likely to be implemented before 2020.

Meanwhile, the world is drifting further towards dangerous levels of average temperature rise and runaway climate change; the IEA projects an increase of 3.6 to 5.3 degrees Celsius by the end of the century. Scientists warn this level of warming could threaten civilization as we know it.

In its "4-for-2 degrees Celsius" scenario, the report proposes four near-term “pragmatic and achievable” measures to put the world on track to limiting warming to safer levels and could reduce emissions by eight percent on levels otherwise expected by 2020 without harming economic growth.

Targeted energy efficiency measures in buildings, industry and transport would account for nearly half of these savings by 2020 while limiting the construction and use of the least-efficient coal-fired power plants could deliver another 20 percent of these savings—while helping to curb local air pollution.

Sources: IEA databases and analysis; Boden et al. (2013).

The report estimated renewable energy generation would increase from around 20 percent to 27 percent over the same period to fill the void created.

Halving methane releases from flaring in the oil and gas industry could provide another 18 percent of the savings and implementing a partial phase of out fossil fuel consumption subsidies would account for 12 percent, according to the report.

The IEA also makes the economic case for avoiding a looming 2017 lock-in for long-term warming above 2ºC. While delaying climate action across the entire energy system till 2020 would save $1.5 trillion, the report estimates that an additional $5 trillion will be needed in low-carbon investment after this date.

Fossil fuel power plants have long life cycles and are therefore exposed to serious risks in a carbon-constrained world, facing early and costly retirement or retrofitting, or even becoming “stranded assets.”

In a report last year, the IEA warned that—to stay below two degrees Celsius—about two-thirds of proven global fossil fuel reserves have to stay in the ground. Yet companies spend vast amounts not only digging up known fossil fuel reserves but by looking for and developing new fossil fuel reserves.

A recent report from the Carbon Tracker Initiative found that the financial industry invested $674 billion in such projects last year alone, and warned that $6 trillion could be pumped into a "carbon bubble" over the next decade.

In response to this dire outlook for carbon-intensive utilities, the IEA promotes a strong global carbon market and carbon capture and storage (CCS) technologies as possible ways to avoid problems and to create a role for fossil fuels in the future energy mix of a carbon-constrained world.

However, in the same report the IEA also warns that the use of CCS “remains distant” as the technology has yet to be deployed at scale, and it could still be many years before the power sector could rely on it, if full-scale deployment ever becomes a reality.

Greenpeace also warns that power plants fitted with the technology require 11-40 percent more fuel and thus boost dependence on fossil fuels even further.

While generally welcoming the IEA’s call to action, environmental groups have upped the stakes.

Samantha Smith, leader of the World Wildlife Fund (WWF) Global Climate & Energy Initiative said:

This is a welcome intervention by the IEA, particularly the focus on energy efficiency standards for lighting, cars and appliances as well as cutting methane losses in oil and gas production. Unfortunately, the other policies are incomplete, not ambitious enough or regionally biased. With the world on track for catastrophic levels of global warming, as the IEA says, these stop-gap proposals simply don’t go far enough.

Building on IEA arguments they argue that the IEA should set a target to cut emissions from coal power 20 percent by 2020—targeting all power stations.

TWh = terawatt-hours. Sources: BNEF (2013) Frankfurt School UNEP Collaborating Centre and Bloomberg New Energy Finance (2012) and IEA data and analysis.

They also call for deeper cuts in fossil fuel subsidies, phasing out both consumption subsidies and production subsidies—those providing incentive for exploring for new reserves—in both developed and developing countries.

According to the IEA, $523 billion was spent globally in 2011—up 30 percent from 2010 and huge in comparison to the $88 billion spent on subsidising clean renewables.

WWF says governments should instead use taxpayer money to boost renewables and fight energy poverty.

Visit EcoWatch’s CLIMATE CHANGE page for more related news on this topic.

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