Based on existing and announced policies – as described in the IEA Stated Policies Scenario (STEPS) – the world is not on course to achieve the outcomes of the UN SDGs most closely related to energy: to achieve universal access to energy (SDG 7), to reduce the severe health impacts of air pollution (part of SDG 3) and to tackle climate change (SDG 13). If all countries were to follow the proposals set out in the sustainable recovery plan: The sustainable recovery plan would have a marked impact on GHG emissions. The Paris Agreement has an objective of “holding the increase in the global average temperature to well below 2 °C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 °C above pre-industrial levels”. Energy systems would become more sustainable as a result of the plan. The spending associated with this plan is around $1 trillion for each of the next three years (i.e. The $110 billion spending on grids in the sustainable recovery plan would increase total spending on grids globally by around 40% from levels seen in recent years, boosting investment towards the levels needed for a more resilient and sustainable electricity network. Ease regulatory approval procedures and extend tax credits schemes for electricity from renewables and other clean energy projects. We’re committed to creating products and services that inspire and support people to make positive lifestyle changes, consume more sustainably, and live better everyday lives. Thank you for subscribing. New Publication – Workshop report: Biofuels Sustainability – Focus on Lifecycle Analysis (LCA) Nov 2019. The sustainable recovery plan would also lead to reductions in the levels of the three main air pollutants (sulfur oxides [SOX], particulate matter [PM2.5], and nitrogen oxides [NOX]) compared with what would otherwise happen. Overview Reports Contacts The goal of Task 12 is to foster international collaboration and knowledge creation in PV environmental sustainability and safety, as crucial elements for the sustainable growth of PV as a major contributor to global energy supply and emission reductions of … The GIMF provides an estimate of the response in GDP over time across different regions to a surge in spending that is above the past five-year average levels of investment. This spending would be additional to the annual levels of expenditure on clean energy measures that have occurred in recent years and includes both public spending and private finance that would be mobilised by public policies. Many energy measures – in particular energy efficiency – would deliver savings for consumers and so increase household disposable income for other purposes, thereby supporting employment in other economic activities. That portion to be funded by government will vary from country to country. Lower oil use in transport is the main cause of reduced NOX emissions. Governments may wish to consider implementing price caps to avoid volatility in LPG prices affecting affordability for low-income consumers, or instituting targeted subsidies, as has been done in India. Assuming that prices remain unchanged, there would be important reductions in consumer bills by the end of the sustainable recovery plan compared with a case without this spending as a result of fuel switching and energy efficiency measures. The largest increase in supply investment comes from renewables-based power, which is on average double today’s level between 2020 and 2050. In evaluating the measures discussed in Chapter 2 in the context of the three objectives of the sustainable recovery plan, we have considered in particular: There are certainly trade-offs between these factors. This report is the IEA’s review of global developments in energy efficiency. For example, former manufacturing workers could work on assembling highly efficient commercial durable goods, and former construction workers could undertake building retrofits. This is not something that is within the power of the energy sector alone to deliver. The shift away from the traditional use of biomass in cooking towards modern and clean alternatives is the main factor leading to the large reductions in PM2.5. The impacts of the sustainable recovery plan on global GDP have been estimated by the International Monetary Fund (IMF) using the Global Integrated Monetary and Fiscal (GIMF) model5. Recovery plans also need to take into account countries’ individual macroeconomic characteristics such as the size and robustness of supply chains, the degree of economic diversification and the extent of labour market flexibility. Sustainability reports These reports give detailed information about the IKEA Group’s work with social and environmental responsibility and shows how far we have come towards achieving our goals. These conditions would require achieving net zero emissions globally by around 2050. Markets dominated by monopolies and state-owned enterprises are often less attractive to foreign investors. Suitability of the various measures will vary across different regions; levels shown provide a global perspective. The decline in the use of coal, mostly for power generation, is the main cause of lower SOX emissions. Many are boosted by remittances and direct aid from advanced economies that could be at risk because of the economic slowdown. In terms of immediate health, unemployment and humanitarian implications, they often have inadequate healthcare capacity and weak social safety nets relative to some advanced economies. Investment in the energy sector can provide jobs and boost growth, while strengthening the resilience of energy systems and making energy more affordable, thereby supporting broad economic activity and jobs in all parts of the economy. Strengthen and widen energy efficiency goals and promote the use of zero-carbon fuels in car manufacturing industries. *Based on relative levels of jobs created per unit of spending and dollars per tCO2-eq avoided. The report does not recommend significant new fossil gas investments as … Improve energy resilience and sustainability. The IEA undermines its own clean stimulus message not only within the contents of the report, but with companion analysis and communications that continue promoting fossil fuels. A variety of efficiency improvements in industrial processes would curb electricity use. Accelerate the re-establishment of disrupted energy supply chains. Achieving universal access will transform the lives of hundreds of millions, and reduce the severe health impacts of indoor air pollution, overwhelmingly caused by smoke from cooking. To date, there are few signs that the fall in oil and gas prices is prompting an acceleration in efforts to phase out subsidies. After the 2008-09 financial crisis, spending on clean energy technology and environmental management measures accounted for around 16% of total stimulus measures (as discussed in Chapter 1). However, if LDAR programmes stop, new leaks that could occur would not be found and fugitive emissions would rise again. Most of the elements with negative abatement costs are efficiency measures in the industrial, buildings and transport sectors. EXPERTS IN Rail IEA provides heavy civil support to some of the largest class I railways in the country, as well as regional light railways. One of the five key policy pillars of the sustainable recovery plan is the mobilisation of private financing to complement the direct government expenditure. It takes account of the circumstances of individual countries, as well as existing energy project pipelines and current market conditions. IFIs and MDBs have also been among the largest foreign direct investors in clean energy technologies in developing countries in recent years, offering short-term credit or guarantees (to improve risk-adjusted returns for private investors), helping to remove barriers to investment and providing technical assistance. Designed to complement other reports in the Market Report Series on energy efficiency, renewables, coal, natural gas and oil, this report focuses on developments in the world’s electricity markets amid the Covid-19 pandemic. The IEA’s Sustainable Development Scenario (SDS) outlines a major transformation of the global energy system, showing how the world can change course to deliver … Innovative and more decentralised energy systems, making full use of local agricultural and energy resources (including modern bioenergy, such as biogas or bio-ethanol and solar PV), have an important part to play in improving access to electricity and progress on clean cooking. Worldwide, investment in energy efficiency worldwide is likely to be down 9% year-on-year Governments with restricted fiscal space may want to pay special attention to mobilising private finance and focus on ensuring the delivery of shovel-ready clean energy projects. The cost of sustaining these jobs is not included in the sustainable recovery plan: they would be funded from the operating revenues of firms using the assets developed under the plan. Improvements in health from reductions in air pollution and increases in the level of energy access in low-income countries also lead to additional medium- and long-term economic growth. Find out about the world, a region, or a country, Find out about a fuel, a technology or a sector, Explore the full range of IEA's unique analysis, Search, download and purchase energy data and statistics, Search, filter and find energy-related policies, Shaping a secure and sustainable energy future, Clean Energy Transitions in Emerging Economies, Digital Demand-Driven Electricity Networks Initiative, Global Commission for Urgent Action on Energy Efficiency, Promoting digital demand-driven electricity networks, A cleaner and more inclusive energy future. This scenario requires $40 billion of annual investment between 2021 and 2030 to reach universal access, making full use of decentralised solutions. IKEA Sustainability Report FY19 (PDF, 5.8 MB) Healthy & sustainable living. Good policy design can exploit synergies between the three parallel objectives of the SDS. Bioenergy and bioeconomy goals require the development of sustainable biomass value chains. Required investment was higher in WEO-2019, at $45 billion per year. Many people in developing economies still lack access to modern energy and clean cooking. Developing a more modern and resilient energy system requires investment in longer term infrastructure and energy efficiency projects. The IPCC Special Report on Global Warming of 1.5°C, published in 2018, assessed a large number of scenarios that led to at least a 50% chance of limiting the temperature rise to 1.5 °C. The scenario got its name from 450 parts per million (ppm), the CO2 concentration that was seen at that time to be consistent with a 50% likelihood of keeping average global temperature rise below 2 °C (assuming that net zero emissions were reached in 2100). 1.6-1.7°C The IEA’s Sustainable Development Scenario (SDS) outlines a major transformation of the global energy system, showing how the world can change course to deliver on the three main energy-related SDGs simultaneously. For internationally traded goods and technologies, promote the alignment of measures to support production with measures to stimulate demand. A further $30 billion would be spent each year to accelerate deployment of recharging networks for electric vehicles, upgrade public transport, and improve walking and cycling infrastructure. Fuel report Energy efficiency’s weakest progress in a decade threatens international climate goals. less than 1.5°C Not all countries have access to international capital markets, and those that do are facing higher financing costs because of increased sovereign risks (Spiegel, Schwank and Obaidy, 2020). Unless gender occupational segregation is addressed, the jobs created by sustainable recovery plans are likely to be taken mainly by men. International co-operation to mobilise concessional loans and provide debt restructuring or debt relief therefore will be critical (UN DESA, 2020).3. International finance institutions (IFIs), multilateral development banks (MDBs), and bilateral donors (e.g. Tailor support for distressed industries. There would also be a small drop in methane emissions from replacing the traditional use of solid biomass in households with alternative fuel sources like liquefied petroleum gas (LPG) or with more modern cook stoves. The near-term focus of the sustainable recovery plan is to stabilise existing projects to maintain jobs and to launch new projects with very short lead times to jump-start new employment. Of course, the specific policies adopted will vary from country to country depending on their particular circumstances and needs. IEA Bioenergy Annual Report 2013 This latest report includes a special feature article ‘Integration of Thermal Energy Recovery into Solid Waste Management’ prepared by Task 36. FY191 is the second IKEA sustainability report since the relaunch of the sustainability strategy, People & Planet Positive, in 2018. This direct expenditure, together with enabling policies, mobilises private spending of close to $700 billion.2. This additional investment cost is partially counterbalanced by reduced fuel costs, which mitigates the impact on the energy bills paid by consumers. There are increasing amounts of data available to allow markets to assess sustainability risks (TCFD, 2017), as well as measures that allow markets to recognise and reward sustainable investments (European Commission, 2020). Compare the new SDS 2020 to IPCC scenarios with a Today, the IKEA Sustainability Report FY18* is released – reporting progress from across the IKEA value chain and franchise system towards the commitment to become People & Planet Positive. Publications. The current low cost of capital adds force to the case for supporting research and development, providing market incentives, promoting commercial demonstration plants, and encouraging the scaling up of manufacturing capacity. This figure is based on the difference between spending on clean energy technologies in recent years and the spending needed to deliver the measures in the plan, taking account of current project pipelines, market conditions and the varying circumstances of countries. Establishing clean cooking infrastructure in rural areas would improve the ability of governments to reach and support these populations, particularly during times of crisis. The Sustainable Recovery Plan set out in this report shows governments have a unique opportunity today to boost economic growth, create millions of new jobs and put global greenhouse gas emissions into structural decline. Countries could aim to maintain or develop a higher proportion of jobs by promoting local industries and developing domestic supply chains, although this would need to be balanced against the need to ensure competitiveness. We hope to help and inspire people to lead more sustainable lives every day with our products. There would be significant co-ordination gains if countries align their actions. Many of the jobs created by the sustainable recovery plan would match the skills of workers who lost jobs during the crisis, or would require little retraining. Mobilise private finance. Many developing economies are at particular risk from the Covid-19 crisis. The SDS holds the temperature rise to below 1.8 °C with a 66% probability without reliance on global net-negative CO2 emissions; this is equivalent to limiting the temperature rise to 1.65 °C with a 50% probability. The International Energy Agency (IEA), founded in 1974, is an autonomous body within the framework of the Organization for Economic Cooperation and Development (OECD). Consumption is the percentage increase in aggregate spending by households and firms. Many countries therefore benefit both from domestic recovery plan spending and (through exports) from the spending in advanced economies. More than 2.6 billion people also relied on traditional uses of biomass, coal or kerosene as their primary cooking fuel in 2018. EXPERTS IN Rail. This year’s report focuses on the impact of the Covid-19 pandemic on energy efficiency and global energy markets this year, as well as analysis of 2019 trends. The four main areas of IEA focus are: It is important that all new infrastructure should be developed in ways that minimise environmental impacts. The public spending required would be equivalent to less than 10% of fiscal expenditure in recovery plans announced to date; after the 2008-09 financial crisis, green measures accounted for around 16% of total stimulus measures. After the period of growth to 2023, the boost to the level of the global economy is maintained, despite the end of the spending and a tightening in the accommodative fiscal stance6. In fact, some countries have introduced additional price interventions to protect newly vulnerable consumers, particularly in the electricity sector (IEA, 2020). Modest levels of investment in these areas can often generate large social and environmental improvements, while at the same time boosting energy resilience and facilitating economic growth. Suppliers for high-tech goods and services (for example relating to power networks and high speed rail) are often located in advanced economies, while basic fabrication materials and appliances are often manufactured outside of advanced economies. This generates savings for households, firms and governments which can be reinvested. The transition to a low-carbon economy leads to a more efficient energy system that relies less on fuel combustion; this plays a major role in improving air quality, reducing both outdoor and household air pollution. We estimate that the overall spending need for the plan is around $1 trillion per year over the next three years: this represents about 0.7% of global GDP today, and includes both public spending and private finance that would be mobilised by public policies. Provide insurance policies and guarantees to reduce the cost of capital. Annual reports The Annual Report highlights the activities and accomplishments of the IEA PVPS Technology Collaboration Program. Just over 30 GW of hydro and nuclear power capacity would benefit from lifetime extensions each year to 2023. This sustainability report gives an overview of the progress against the IKEA sustainability strategy. In the former case, only the additional cost of the more efficient or electric car (compared with an inefficient equivalent) is included in the spending, in the latter case the full cost of the new car is included. Construction and manufacturing would account for the vast majority of the immediate jobs boost during the sustainable recovery plan, but long-lived capital assets built as a result of the plan would also give rise to continuing operations and maintenance (O&M) and management jobs. Where central banks are expanding the supply of money through the purchase of assets, the introduction of appropriate eligibility criteria (for example, a preference to purchase corporate bonds that meet certain conditions), would help to ensure that the finance is directed towards sectors and technologies that are aligned with the goals of the sustainable recovery plan (Matikainen, Campiglio and Zenghelis, 2017). The Sustainable Development Scenario explicitly supports these broader development efforts (in contrast to most other decarbonisation scenarios), in particular through its energy access and cleaner air dimensions. Energy production and use is the largest source of global greenhouse-gas (GHG) emissions, meaning that the energy sector is crucial for achieving this objective. Global energy investment totalled more than US$1.8 trillion in 2018, a level similar to 2017. Status of the Market for Solar Thermal Systems ... there are a number of schemes that promote energy efficiency in buildings and also wider sustainability schemes. Rights at work should ensure that women and men have equal opportunities, are protected from discrimination and have access to maternity and parental leave allowances. The Global Status Report 2017 was prepared by Thibaut Abergel, Brian Dean and John Dulac of the International Energy Agency (IEA) for the Global Alliance for Buildings and Construction (GABC). Our modelling indicates that this plan would create nearly 9 million new energy-related jobs in construction and manufacturing over the next three years: this compares with a figure of 6 million jobs at risk from the Covid-19 crisis in energy supply, efficiency, and vehicles. Analysis done jointly with the International Monetary Fund indicates that this plan would also increase global GDP by 1.1% in each of the next three years, and would lead to global GDP being 3.5% higher in 2023 that it would have been without a spending stimulus. Roundtable on Sustainable Biomaterials (RSB), and the International … Inflation and real interest rate are percentage point differences from a baseline with no increase in investment. Around 5% of the jobs created by the sustainable recovery plan would be suitable for unskilled labour: a number of measures, like waste collection and biofuels support, would also be likely to support a significant number of workers in the informal economy. As the figure above makes clear, the SDS trajectory is well within the envelope of these scenarios. Introduce or strengthen rules on measuring and reducing methane emissions from oil and gas operations. 1.9-2.0°C In total, the efficiency of around 20 million dwellings would be drastically improved each year as a result of the recovery plan. The investment needed to achieve universal energy access amounts to some $40 billion per year between 2021 and 2030, the lion’s share of it for electricity access. A number of projects that were under construction or had reached the advanced stages of planning were delayed or postponed as a result of the Covid-19 pandemic. IEA Bioenergy to launch a new report on sustainability governance approaches for bioenergy and biomaterials supply chains. However, as frequently highlighted in the WEO, there are reasons to limit reliance on early-stage technologies for which future rates of deployment are highly uncertain: that is why the SDS emphasises the importance of early action on reducing emissions. Establish public co-funding schemes to reduce upfront investment costs through grants, concessional loans, public procurement and feed-in-tariffs. Support the development of urban and public transport infrastructure such as high speed rail and charging points for electric vehicles. The resilience of low-income economies would be substantially improved by increased energy efficiency, better access to electricity and progress on clean cooking solutions. Construction and manufacturing jobs only last as long as there is a steady stream of new projects, and at some point countries would need to assess the need to repopulate the project pipeline to sustain these jobs. This is the first ever Electricity Market Report produced by the International Energy Agency (IEA). The report was coordinated by United Nations Environment Programme and Emissions would be nearly 3.5 gigatonnes of CO2 (Gt CO2) lower by 2025 than they would have been without the recovery plan. Targeted engagement with the private sector and civil society can help improve transparency. We look first at the temporary construction and manufacturing jobs that would be created and then at the longer term operations, maintenance and management jobs. Provide technical assistance and capacity building. Increase borrowing thresholds and provide tax credits or grants for new infrastructure such as electricity networks. Globally, 860 million people did not have access to electricity in 2018, and around 60% of health services lack reliable access to electricity in most sub-Saharan countries (Cronk and Bartram, 2018). Globally, males hold around 93% of construction jobs and more than 60% of manufacturing jobs. In the longer term, however, targeted support to develop and deploy emerging clean energy technologies and boost the skills base of domestic workers could bring important benefits in terms of sustainability and resilience. The Annual Report also includes a report from the Executive Committee and a detailed progress report on each of the Tasks. If the sustainable recovery plan were to be implemented by all countries globally, this would lead to the creation of around 9 million full-time equivalent energy sector jobs in construction and manufacturing by the end of 2021. Around $45 billion would be spent each year to accelerate the development and production of new projects and industrial capacity for clean energy technologies such as hydrogen, batteries, carbon capture, utilisation and storage (CCUS) and small modular nuclear reactors (SMRs). This plan, which is specific, detailed and time-limited, was developed using the quantitative assessments of potential energy sector measures in Chapter 2. The already sluggish pace of global progress on energy efficiency is set to slow further this year as a result of the economic impacts of the Covid-19 crisis, deepening the challenge of reaching international energy and climate goals and making stronger government action critical Final energy consumption would be around 350 million tonnes of oil equivalent (Mtoe) lower than it would have been otherwise by the end of the spending period. Response to a need. Public policies have an essential part to play in facilitating the deployment of private capital through regulations, market frameworks and tax reforms. IEA brings a deep understanding of the complexities involved with plant, refinery, manufacturing, distribution, and other industrial facility construction. There would be deep retrofits of a large number of existing buildings, and a number of new highly efficient buildings would be built. There is a significant shift in capital spending away from fossil fuels to renewables and other low-carbon sources as well as to electricity. In low-income countries without full electricity access where many people rely on the traditional use of biomass for cooking, investment in grids, decentralised systems and clean cooking solutions could employ around 350 000 people globally on average in the period to 2023. This is partly because the amount of spending in advanced economies is less, but also because many of the indirect manufacturing jobs created are located outside of advanced economies. Sustainability is a big deal to us. Some rely on income from oil and gas exports and have seen a major drop in revenues. Many IFIs and MDBs have announced financing goals or are refining frameworks to improve the alignment of their lending portfolios with sustainability objectives (for example, to limit or discourage emission-intensive technologies and infrastructure, and more broadly to integrate adaptation measures into project designs). Oil 2020, the International Energy Agency’s annual outlook for global oil markets, examines the key issues in demand, supply, refining and trade to 2025.. There is a small degree of variation in the increase in global GDP in later years depending on how the near-term increase in government expenditure is assumed to be funded (e.g. A number of countries have announced support packages for their construction, vehicle manufacturing and airline industries, for example. As discussed in Chapter 2, phasing out inefficient fossil fuel subsidies in nearly all regions would reduce CO2 emissions by around 700 million tonnes (Mt) by 2030. The strategy covers the entire IKEA value chain and franchise system, with ambitions leading to 2030. It is important to note, however, that the assessment of measures may vary from one country to another. Global CO2 emissions from the energy sector and industrial processes fall from 35.8 billion tonnes in 2019 to less than 10 billion tonnes by 2050 and are on track to net zero emissions by 2070. IEA Bioenergy is an organisation set up in 1978 by the International Energy Agency (IEA) with the aim of improving cooperation and information exchange between countries that have national programmes in bioenergy research, development and deployment. You can unsubscribe at any time by clicking the link at the bottom of any IEA newsletter. Since then the global goalposts have shifted, technological progress has been uneven, and emissions have continued to grow. Some sectors severely impacted by the Covid-19 crisis are likely to require government support to continue operations. An average of around 130 gigawatts (GW) of additional wind and solar PV global capacity would be installed each year from 2021 to 2023 (additional to the levels that would be installed in the absence of the recovery plan). There is a very strong case for the energy sector to play a central part in these plans: Chapter 2 examined a range of measures, assessing their potential to create jobs and stimulate growth and their likely impact on energy security, emissions and air pollution. Eliminating the 10 Gt CO2 energy-sector emissions remaining in SDS in 2050 would not amount to a simple extension of the changes to the energy system described in the SDS. Oil demand in transport would also be reduced from a shift in some light commercial vehicles sales to electric models and from improvements in the efficiency of trucks, airplanes and ships. 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