Global energy-related carbon dioxide emissions can be reduced by 70 per cent by 2050 and completely phased-out by 2060 with a net positive economic outlook, according to new findings released by the International Renewable Energy Agency (IRENA).
Perspectives for the Energy Transition: Investment Needs for a Low-Carbon Energy Transition was launched at the Berlin Energy Transition Dialogue this week.
The study found increased deployment of renewable energy and energy efficiency in G20 countries and globally could achieve the emissions reductions needed to keep global temperature rise to no more than two-degrees Celsius.
“The Paris Agreement reflected an unprecedented international determination to act on climate,” IRENA director-general Adnan Z Amin said.
“The focus must be on the decarbonision of the global energy system as it accounts for almost two-thirds of greenhouse gas emissions.
“Critically, the economic case for the energy transition has never been stronger.
“Today around the world, new renewable power plants are being built that will generate electricity for less cost than fossil-fuel power plants.
“And through 2050, the decarbonisation can fuel sustainable economic growth and create more new jobs in renewables.
“We are in a good position to transform the global energy system but success will depend on urgent action, as delays will raise the costs of decarbonisation.”
While overall the energy investment needed for decarbonising the energy sector is substantial – an additional US$29 trillion until 2050 – it amounts to a small share (0.4 per cent) of global GDP.
IRENA’s macroeconomic analysis suggests that such investment creates a stimulus that, together with other pro-growth policies, will boost global GDP by 0.8% in 2050; generate new jobs in the renewable energy sector that would more than offset job losses in the fossil fuel industry, with further jobs being created by energy efficiency activities, and; improve human welfare through important additional environmental and health benefits thanks to reduced air pollution.
Globally, 32 gigatonnes (Gt) of energy-related CO2 were emitted in 2015.
The report stated that emissions would need to fall continuously to 9.5Gt by 2050 to limit warming to no more than two degrees above pre-industrial temperatures.
Ninety per cent of this energy CO2 emission reduction can be achieved through expanding renewable energy deployment and improving energy efficiency.
Renewable energy now accounts for 24 per cent of global power generation and 16 per cent of primary energy supply.
To achieve decarbonisation, the report stated that by 2050, renewables should be 80 per cent of power generation and 65 per cent of total primary energy supply.
The report also described how the energy sector transition needs to go beyond the power sector into all end-use sectors.
“Renewables need to account for the majority of power generation in 2050, based on continued rapid growth especially for solar and wind power in combination with enabling grids and new operating practices,” IRENA said.
“But also, the buildings, industry and transport sectors need more bioenergy, solar heating and electricity from renewable sources that substitute conventional energy.
“Electric vehicles need to become the predominant car type in 2050. Liquid biofuel production must grow ten-fold.
“High efficiency all-electric buildings should become the norm. Deployment of heat pumps must accelerate and a combined total of two billion buildings will need to be new built or renovated.”
The report called for policy efforts to create an enabling framework and re-design of energy markets.