© OECD/IEA 2012 Washington DC, July 2012 Richard H. Jones, Deputy Executive Director Dr. Markus Wråke, ETP Project Leader, A clean energy future, is it.

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Presentation transcript:

© OECD/IEA 2012 Washington DC, July 2012 Richard H. Jones, Deputy Executive Director Dr. Markus Wråke, ETP Project Leader, A clean energy future, is it still possible?

ETP 2012 – Choice of 3 Futures © OECD/IEA DS where the world is now heading with potentially devastating results The 6°C Scenario 4DS reflecting pledges by countries to cut emissions and boost energy efficiency The 4°C Scenario 2DS a vision of a sustainable energy system of reduced Greenhouse Gas (GHG) and CO 2 emissions The 2°C Scenario

Sustainable future still in reach © OECD/IEA 2012 Are we on track to reach a clean energy future? NO ✗ Can we get on track? YES ✓ Is a clean energy transition urgent? YES ✓

Clean energy: slow lane to fast track © OECD/IEA 2012 Progress is too slow in almost all technology areas Significant action is required to get back on track

Renewable power generation 42% Average annual growth in Solar PV 27% Average annual growth in wind 75% Cost reductions in Solar PV in just three years in some countries Renewables provide good news

Energy RD&D has slipped in priority © OECD/IEA 2012

A smart, sustainable energy system © OECD/IEA 2012 A sustainable energy system is a smarter, more unified and integrated energy system

Recommendations to Governments © OECD/IEA Create an investment climate of confidence in clean energy 2. Unlock the incredible potential of energy efficiency – “the hidden” fuel of the future 3. Accelerate innovation and public research, development and demonstration (RD&D)

© OECD/IEA 2012 CO 2 reductions in the US The power and transport sectors are key to achieving the 2DS.

Low-carbon electricity: a clean core © OECD/IEA 2012 Renewables will generate more than half the world’s electricity in 2050 in the 2DS TWh Global electricity generation in the 2DS

© OECD/IEA 2012 Rocky road ahead for US renewables Policy uncertainty, competition from natural gas and cost of capital slow renewables growth

© OECD/IEA 2012 Natural gas is lowering emissions… Gas and coal fired power generation in the US, actual and IEA Medium Term Outlook

© OECD/IEA 2012 …but is not a panacea Around 2030, natural gas becomes ‘high carbon’. CCS must play a role if gas use should continue to grow.

© OECD/IEA 2012 The CCS infant must grow quickly © OECD/IEA 2012 Note: Capture rates in MtCO 2 /year Mt CO 2

Electric vehicles need to come of age © OECD/IEA 2012 More than 90% of new light duty vehicles need to be propelled by an electric motor in 2050 Passenger LDV sales (million)

Translating targets into action © OECD/IEA 2012 Government targets need to be backed by policy action

Fuel economy makes a difference © OECD/IEA 2012 Fuel economy improvements in conventional and hybrid vehicles alone can save 11 mbbl/day. 6DS Better FE 2DS equivalent to 11mbbl/day reduction 6DS Better FE 2DS(I/A/S)

© OECD/IEA 2012 …but modal shift is also needed Fuel economy alone is not enough to meet 2DS targets Passenger mode share in the US Billion passenger km

Building sector challenges differ OECD Non OECD 75% of current buildings in OECD will still be standing in 2050

Heating & Cooling: the forgotten giant © OECD/IEA 2012 Heating and cooling account for 46% of global energy use. Their huge potential for cutting CO 2 emissions is often neglected.

© OECD/IEA 2012 Electrification is a double-edged sword Heat pumps can deliver great savings - under the right conditions and with correct operation.

Clean energy investment pays off © OECD/IEA 2012 Every additional dollar invested in clean energy can generate 3 dollars in return. USD trillion

© OECD/IEA For much more, please visit

© OECD/IEA 2012 Visualising ETP Data – reductions

© OECD/IEA 2012 Visualising ETP Data – energy flows

© OECD/IEA 2012 Visualising ETP Data – fuel flows