Low-Carbon Energy Transitions in Qatar and the Gulf Cooperation Council Region
Total Page:16
File Type:pdf, Size:1020Kb
LOW-CARBON ENERGY TRANSITIONS IN QATAR AND THE GULF COOPERATION COUNCIL REGION Joshua Meltzer Nathan Hultman Claire Langley FEBRUARY 2014 About the Global Economy and Development program at the Brookings Institution: The Global Economy and Development program aims to shape the U.S. and international policy debate on how to manage globalization and fight global poverty. The program is home to leading scholars from around the world, who use their expertise in international macroeconomics, political economy, international relations and development and environmental economics to tackle some of today’s most pressing development challenges. For more information about the program, please visit: www.brookings.edu/global Joshua Meltzer is a fellow in the Global Economy and Development program at the Brookings Institution and adjunct professor at Johns Hopkins University’s School of Advanced International Studies. Nathan Hultman is director of the Environmental Policy Program at the University of Maryland’s School of Public Policy and a nonresident senior fellow in the Global Economy and Development program at the Brookings Institution. Claire Langley is a research associate in the Global Economy and Development program at the Brookings Institution. Acknowledgements: Brookings gratefully acknowledges the Qatar Foundation for support of this publication and related work around the Doha Carbon & Energy Forum, which took place in November 2013. Brookings recognizes that the value it provides is in its absolute commitment to quality, independence and im- pact. Activities supported by its donors reflect this commitment and the analysis and recommendations are not determined or influenced by any donation. CONTENTS EXECUTIVE SUMMARY . 1 CHAPTER 1: CLIMATE CHANGE . 4 INTRODUCTION . 4 Climate Change Implications for the Gulf Cooperation Council Region . 5 Climate Change Implications for Qatar . 5 CLIMATE CHANGE AND ENERGY . 6 The Energy Mix in Qatar and the GCC . 6 Greenhouse Gas Emissions in Qatar and the GCC . 7 ACTION TO ADDRESS CLIMATE CHANGE . 10 International Climate Change Initiatives. 10 National Climate Change Actions . 12 Qatar’s Climate Change Initiatives . 12 Climate Change Technology Development . 13 RECOMMENDATIONS . 14 Get the Policy Framework Right . 14 Appropriate Targets and Actions . 15 Financing Climate Change Action and Clean Energy Technology Development . 16 Developing Climate Change Technologies . 16 CHAPTER 2: CARBON CAPTURE AND STORAGE . 18 INTRODUCTION . 18 THE ROLE OF CARBON CAPTURE AND STORAGE (CCS) . 18 The Role of CCS in Reducing Emissions . 18 The Role of CCS in Qatar and the GCC Region . 18 BARRIERS TO DEVELOPING CCS . 19 Technical Barriers . 19 Transportation . 20 Storage . 20 Financing . 21 CCS INITIATIVES . 22 International Forums Working on CCS . 22 International and Bilateral Cooperation on CCS . 22 Qatar’s Domestic CCS Initiatives . 23 RECOMMENDATIONS . 24 Policy Framework: A National CCS Program for Qatar . 24 Build Expertise .. 24 Financing for CCS . 25 CHAPTER 3: ENERGY EFFICIENCY . 26 INTRODUCTION . 26 GULF COOPERATION COUNCIL REGION’S ENERGY INTENSITY . .. 26 The GCC Energy Mix in a Global Context . 26 A Changing Energy Landscape . 26 BENEFITS OF ENERGY EFFICIENCY MEASURES . 27 Technology . 27 Investments . 27 PROBLEMS AND POLICIES: INTERNATIONAL EXPERIENCE WITH ENERGY EFFICIENCY . 28 Market Distortion through Energy Subsidies . 29 Non-Market Obstacles to Energy Efficiency . 29 Energy Efficiency Finance . 31 ENERGY EFFICIENCY POLICY . 32 Recent Developments in Efficiency Policy in Qatar and Other GCC Countries . 32 RECOMMENDATIONS . 35 Policy Approaches . 35 Efficiency Measures . 35 CHAPTER 4: SOLAR AND OTHER ALTERNATIVE ENERGY . 40 INTRODUCTION . 40 ALTERNATIVE ENERGY IN A GLOBAL CONTEXT . 40 GCC Energy Demand . 40 Benefits of Alternative Energy Sources . 40 Alternative Energy Technologies in the GCC . 41 INTERNATIONAL INITIATIVES . 42 International Solar and Alternative Energy Initiatives . 42 Global Investment in Alternative Energy . 44 Alternative Energy Policies . .. 45 ALTERNATIVE ENERGY IN THE GCC . .. 45 Advantages and Challenges in the GCC Region . 45 Qatar and GCC Region Solar and Alternative Energy Initiatives . 47 RECOMMENDATIONS . 49 Resource Assessment and Data Collection . 49 Renewable Requirements . 49 Region-Specific Technological Research . 50 Energy-Pricing Reform . .. 50 Public-Private Partnerships . 50 Alternative Finance . 50 CONCLUSION: SYNTHESIS AND RECOMMENDATIONS . 51 POLICY PROGRAM 1: TECHNOLOGY INNOVATION . .. 52 R&D Programs for Select Technologies . 52 R&D Finance . 53 R&D Cooperation . 54 Public-Private Partnerships for Research, Development, Demonstration and Deployment . 54 POLICY PROGRAM 2: INDUSTRIAL EFFICIENCY . 55 Lower-Energy Buildings . 55 Efficient Appliances and Industrial Equipment . 55 New Government Institutions to Oversee Efficiency . 56 Utility-Driven and Utility-Led Efficiency Programs . .. 56 POLICY PROGRAM 3: ALTERNATIVE SOURCES OF SUPPLY . 57 Resource Assessment and Data Collection . 57 Renewable Requirements . 57 Alternative Finance . 58 POLICY PROGRAM 4: RESTRUCTURING THE ENERGY MARKET . 58 POLICY PROGRAM 5: EFFECTIVE GOVERNANCE . 59 ANNEX 1: KEY COUNTRIES WITH CARBON CAPTURE AND STORAGE DEMONSTRATION PROJECTS . 60 REFERENCES . 63 ENDNOTES . 76 LIST OF TABLES Table 1: GCC country-specific GHG emissions data, excluding land use, land use change and forestry . 8 Table 2: Sources of GHG emissions by sector (expressed as a percentage of total emissions) . 8 Table 3: Sources of GHG emissions from energy sub-sectors in GCC countries (expressed as a percentage of the total emissions from these sectors) . 9 Table 4: Internal rate of returns for 119 studied projects in developing countries . 28 Table 5: Energy use targets and standards in GCC countries . 34 Table 6: Comparison of solar and alternative energy policies in selected countries . 46 LIST OF FIGURES Figure 1: Trends in energy intensities in different world regions (total energy consumption per dollar of GDP, in BTU per 2005 USD in purchasing power parity) . 10 Figure 2: Global contributions to emissions reductions in the 2°C scenario, by sector and technology . 27 Figure 3: MENA pre-tax energy subsidies and spending on education [a, b] (in percent of GDP) . 30 Figure 4: Installed solar photovoltaics capacity in selected countries and the world, 2000-2012 (MW) . .. 43 Figure 5: Cumulative installed wind capacity, 1997-2012 (MW) . 43 Figure 6: Global investment in renewable energy by asset class (billions of dollars) . 44 LOW-CARBON ENERGY TRANSITIONS IN QATAR.