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Energy, Climate Change and Environment: 2014 Insights Existing Infrastructure Be Addressed Energy, Climate Change &Environment 2014 Insights Secure Sustainable Together Energy, Climate Change &Environment 2014 Insights EECC_2014_Cover_WEB.indd 3 03-11-2014 16:51:13 INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its primary mandate was – and is – two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply, and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 29 member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency’s aims include the following objectives: n Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. n Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. n Improve transparency of international markets through collection and analysis of energy data. n Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. n Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. IEA member countries: Australia Austria Belgium Canada Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Japan Secure Sustainable Together Korea (Republic of) Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic © OECD/IEA, 2014 Spain International Energy Agency Sweden 9 rue de la Fédération Switzerland 75739 Paris Cedex 15, France Turkey www.iea.org United Kingdom Please note that this publication United States is subject to specific restrictions that limit its use and distribution. The European Commission The terms and conditions are available online at also participates in http://www.iea.org/termsandconditionsuseandcopyright/ the work of the IEA. 40Years_Page02_2014_20x27_Q_Estonia.indd 1 5/16/2014 3:48:01 PM Foreword I am pleased to release Energy, Climate Change and as well as support the long-term low-carbon transformation Environment: 2014 Insights. of the energy sector. The future of the energy sector and that of our planet’s The fourth chapter presents the special focus of this year’s climate are inextricably linked. Access to secure, publication: the linkages between air pollution control affordable energy is a critical driver of economic growth and greenhouse gas emissions. This is a highly topical and social development. However, current approaches issue globally and one that is playing out in both of to energy supply and consumption are exerting a heavy the world’s largest greenhouse gas emitters, China and toll on the global environment: energy sector carbon the United States, though in very different contexts. dioxide emissions account for over 60% of total global The extent to which policies designed to improve air 3 greenhouse gas emissions, and there are serious concerns quality may help reduce carbon emissions (and vice in many regions about the energy sector’s impact on air versa) is explored, supported by the experience of various quality, water resources and ecosystems. countries at different stages of development. The International Energy Agency (IEA) works to ensure This set of policy topics is complemented by regional reliable, affordable and clean energy for its member energy-related emissions data. We trust this will provide countries and beyond. We contribute to fulfilling this useful insights into emissions trends over the past several mission with various publications, including tracking years as well as their drivers; not only for international and reporting of energy and emissions statistics, and decision makers, but for the wider audience of energy modelling work such as the World Energy Outlook and practitioners and policymakers. Energy Technology Perspectives. This new publication, and As international climate negotiations advance towards subsequent editions, will complement this existing body a new climate agreement in 2015, it is important of work. Each year, it will provide a technical analysis to consider how to best track the implementation of of selected policy issues at the energy-climate interface, countries’ pledged contributions, many of which will focusing both on topical issues and on those that we require the transformation of their energy sector. As an consider are not receiving sufficient attention. This policy observer organisation in the United Nations Framework analysis is accompanied by an annual update of key Convention on Climate Change negotiations, the IEA can energy and emissions statistics. play a role in supporting the international community The topics chosen this year are diverse, indicative of the in this effort through the provision of high-quality data wide range of challenges the world faces to reconcile and analysis. energy and climate objectives. Three initial chapters focus In order to realise a clean energy future, the world will on a set of proven policy tools that countries can adapt need to significantly “bend the curve” away from current to their own context when putting together a stronger energy and emissions trends. Fortunately, the energy package of policies for energy sector decarbonisation: landscape is rich in options to allow a transformation to • Policies to accelerate the upgrading or retirement a more secure, affordable, and sustainable system in an of existing high-emissions infrastructure - what we call increasingly carbon-constrained world. This publication “‘unlocking” – that can create greater space for clean is designed to help us better understand some of the key energy. This is important because keeping climate change challenges and options in getting there. within manageable levels will require that “locked-in” Energy, Climate Change and Environment: 2014 Insights existing infrastructure be addressed. is published under my authority as Executive Director of • Emissions trading, which provides a cost-effective the IEA. framework for emissions mitigation and the flexibility to Maria van der Hoeven design systems that fit with national circumstances. This includes co-ordination with other energy policies that are Executive Director also necessary for the transition to low-carbon growth. International Energy Agency • Alternative energy-specific metrics that can better support efforts to reduce short- to medium-term emissions, Foreword Acknowledgements Energy, Climate Change and Environment was prepared This work also benefited from review by experts by the Environment and Climate Change Unit (ECC) of from IEA member and partner countries and various the International Energy Agency (IEA). The manuscript organisations. In particular, we are grateful to Dries was prepared by IEA analysts in the Energy Efficiency Acke (European Climate Foundation), Emilie Alberola and Environment Division (EED): Liwayway Adkins (CDC Climat), Richard Baron (OECD), Ben Caldecott (Section 4.3), Dennis Best (Section 4.2), Christina (University of Oxford), Rebecca Collyer (European Hood (Chapter 1 and Chapter 3), Caroline Lee (Chapter Climate Foundation), Casey Cronin (ClimateWorks 2 and Chapter 5) and Ellina Levina (Section 4.1). Foundation), Stacey Davis (Center for Clean Air Policy), 4 The manuscript includes substantial input and Richard Garbaccio (US Environmental Protection contributions from Lesley Sloss from the IEA Clean Coal Agency), Mike Hogan (Regulatory Assistance Project), Centre (Chapter 4.1) and Matthias Kimmel from Duke John Larsen (Rhodium Group), Michael Lazarus University (Chapter 1 and Chapter 3), as well as from (Stockholm Environment Institute), Benoît Leguet IEA colleagues Emer Dennehy (Chapter 3), Christopher (CDC Climat), Andrei Marcu (Centre for European Policy Guelff (Chapter 2), Aidan Kennedy (Chapter 5), Studies), Matt Philips (European Climate Foundation), Roberta Quadrelli (Chapter 5) and Simone Targetti Andrew Prag (OECD), Liu Qiang (China’s National Ferri (Chapter 3 and Chapter 5). Overall guidance and Centre for Climate Change Strategy and International input was provided by Takashi Hattori, Head of ECC, Cooperation), Nathan Richardson (Resources for the and Philippe Benoit, Head of EED. Didier Houssin, Future), Simon Skillings (E3G), Thomas Spencer (IDDRI) Director of Sustainable Policy and Technology (SPT), and Robert Stavins (Harvard Kennedy School) for their provided valuable direction and input into this work. substantive inputs. This report benefited from review and comments from The authors would like to thank Kristine Douaud for her many IEA colleagues, in particular Tyler Bryant, Keith excellent editing of the manuscript, as well as the IEA Burnard, Laura Cozzi, Dagmar Graczyk, Timur Gül, Communication and Information Office, in particular George Kamiya, Kijune Kim, Simon Mueller, Cédric Muriel Custodio, Astrid Dumond, Greg Frost, Rebecca Philibert, Christopher Segar, Misako Takahashi, Cecilia Gaghen, Bertrand Sadin and Therese Walsh for their
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