Energy, climate, growth, China, India – the World Energy Outlook 2012
In four parts, 18 chapters, four annexes, illustrated by around 300 figures, the chapters supported by about 100 tables, a separate set of data upon which scenarios rest, the World Energy Outlook 2012 of the International Energy Agency (IEA) is a 690-page behemoth. I can only sketch its merest outline here, and in a fleeting way touch upon the knowledge and information it contains.
Drawing on the latest data and policy developments, the World Energy Outlook 2012 presents projections of energy trends through to 2035 and insights into what they mean for energy security, the environment and economic development. “Over the Outlook period, the interaction of many different factors will drive the evolution of energy markets,” said the WEO-2012. “As outcomes are hard to predict with accuracy, the report presents several different scenarios, which are differentiated primarily by their underlying assumptions about government policies.” We are told that the starting year of the scenarios is 2010, the latest year for which comprehensive historical energy data for all countries were available. What are these four scenarios?
1. The New Policies Scenario – the report’s central scenario – takes into account broad policy commitments and plans that have already been implemented to address energy-related challenges as well as those that have been announced, even where the specific measures to implement these commitments have yet to be introduced.
2. To illustrate the outcome of our current course, if unchanged, the Current Policies Scenario embodies the effects of only those government policies and measures that had been enacted or adopted by mid-2012.
3. The basis of the 450 Scenario is different. Rather than being a projection based on past trends, modified by known policy actions, it deliberately selects a plausible energy pathway. The pathway chosen is consistent with actions having around a 50% chance of meeting the goal of limiting the global increase in average temperature to two degrees Celsius (2°C) in the long term, compared with pre-industrial levels.
4. The Efficient World Scenario has been developed especially for the World Energy Outlook 2012 (WEO-2012). It enables us to quantify the implications for the economy, the environment and energy security of a major step change in energy efficiency.
I have extracted five important messages from the summary which are connected to the subjects you find in this blog – food and agriculture, consumer behaviour and its impacts on our lives, the uses that scarce energy is put to, the uses that scarce water is put to, the ways in which governments and societies (very different, these two) view food, energy and water.
Five key messages:
“Energy efficiency can keep the door to 2°C open for just a bit longer.” Successive editions of the World Energy Outlook have shown that the climate goal of limiting warming to 2°C is becoming more difficult and more costly with each year that passes. The 450 Scenario examines the actions necessary to achieve this goal and finds that almost four-fifths of the CO2 emissions allowable by 2035 are already locked-in by existing power plants, factories, buildings, etc. No more than one-third of proven reserves of fossil fuels can be consumed prior to 2050 if the world is to achieve the 2°C goal.
“Will coal remain a fuel of choice?” Coal has met nearly half of the rise in global energy demand over the last decade, growing faster even than total renewables. Whether coal demand carries on rising strongly or changes course will depend on the strength of policy measures that favour lower-emissions energy sources, the deployment of more efficient coal-burning technologies and, especially important in the longer term, CCS. The policy decisions carrying the most weight for the global coal balance will be taken in Beijing and New Delhi – China and India account for almost three-quarters of projected non-OECD coal demand growth (OECD coal use declines).
“If nuclear falls back, what takes its place?” The anticipated role of nuclear power has been scaled back as countries have reviewed policies in the wake of the 2011 accident at the Fukushima Daiichi nuclear power station. Japan and France have recently joined the countries with intentions to reduce their use of nuclear power, while its competitiveness in the United States and Canada is being challenged by relatively cheap natural gas. The report’s projections for growth in installed nuclear capacity are lower than in last year’s Outlook and, while nuclear output still grows in absolute terms (driven by expanded generation in China, Korea, India and Russia), its share in the global electricity mix falls slightly over time.
“A continuing focus on the goal of universal energy access.” Despite progress in the past year, nearly 1.3 billion people remain without access to electricity and 2.6 billion do not have access to clean cooking facilities. Ten countries – four in developing Asia and six in sub-Saharan Africa – account for two-thirds of those people without electricity and just three countries – India, China and Bangladesh – account for more than half of those without clean cooking facilities. The report presents an Energy Development Index (EDI) for 80 countries, to aid policy makers in tracking progress towards providing modern energy access. The EDI is a composite index that measures a country’s energy development at the household and community level.
“Energy is becoming a thirstier resource.” Water needs for energy production are set to grow at twice the rate of energy demand. The report estimates that water withdrawals for energy production in 2010 were 583 billion cubic metres (bcm). Of that, water consumption – the volume withdrawn but not returned to its source – was 66 bcm. The projected rise in water consumption of 85% over the period to 2035 reflects a move towards more water-intensive power generation and expanding output of biofuels.
Such is the barest glimpse of the WEO-2012. There are a number of aspects of the Outlook which deserve more scrutiny with a view to learning energy use and misuse, and this will be expanded upon in the weeks ahead.