12
Nov 2008 - Gland, Switzerland: WWF has welcomed
the International Energy Agency's call for
an ‘energy revolution’ when the inter-governmental
organisation presented its new World Energy
Outlook in London today.
WWF shares IEA’s view
that the use of coal is the biggest threat
to the world’s climate. The new report predicts
that if governments fail to put into place
the right policies and measures, coal use
will grow by at least two per cent per annum
until 2030 - much more than the other conventional
fuels.
“What concerns us is
that the IEA fails to call for an end to
’business-as-usual’ coal,” said Dr Stephan
Singer, Director of WWF’s Global Energy
Program. “For WWF, any policy to contain
dangerous climate change must stipulate
that only very low-carbon and pollution
emitting coal energy sources are being deployed.”
An alternative climate-compatible
scenario, included in the IEA outlook for
the first time, aims at keeping atmospheric
CO2 concentration at the safer 450ppm level,
costing about $US 9 trillion more than business
as usual over the next 25 years but yielding
enormous pay-back in saved energy costs.
“We do share the view
of the IEA that an energy revolution is
needed,” said Dr Singer. “Yet the IEA assumes
an oil price of US$100 – 120 per barrel
between now and 2030. This is much too low,
does not take account of increasingly depleted
oil resources and will never trigger that
energy revolution.”
“IEA's climate friendly
scenario is truly ambitious compared to
earlier IEA scenarios, but underestimates
what is required. It sets the bar too low
by talking about achieving an almost 40%
CO2 reduction by the OECD by 2030 based
on 2006 levels. What we need is more: a
25-40 per cent reduction over 11000 levels
already in 2020.”
WWF shares the IEA analysis
that most of new investments in the energy
sector between now and 2030 must and will
go into the power sector – approximately
$US 17 trillion in IEA’s low carbon scenario.
“That sounds a lot of
cash. But it’s only around 0.5% of global
GDP which is far less than the price of
inaction in form of the much higher costs
of damaging impacts of climate change.”
“Also, the various non-climate
benefits such as reduced air pollution,
new market opportunities for clean technologies,
and saved money from energy bills are not
included in this calculation.”
The IEA's 450 ppm scenario
shows a 40% share of renewables in the global
power sector by 2030 and about 350 GW of
capacity under carbon capture and storage
– an essential but still largely uncosted
technology set to become part of the price
of using coal.
“Governments have shown
that they have a pivotal role in regulating
the financial markets,” said Dr Singer.
“They need to assume a similar role in relation
to energy markets and their emissions into
the atmosphere.”
