Business group wants more use of low-carbon energy

GENEVA, Switzerland, November 22, 2006 (Refocus Weekly)

The world must immediately increase its use of established low-emission energy technologies, as one focus on managing GHG emissions.

“Energy is the fuel for growth, an essential requirement for economic and social development,” says the World Business Council for Sustainable Development in ‘Energy & Climate - A contribution to the dialogue on long term cooperative action.’ Energy demand could triple by 2050 and, “with the prospect of such increases in energy demand giving rise to further increases in GHG emissions, action on climate change is now a high priority for society.”

Governments want to stabilize the concentration of GHGs “in an equitable and an economically responsible way,” and the focus “must be on improving energy efficiency within the global economy and managing emissions from the energy we use,” it notes. This focus will require “better utilization of established low emission energy technologies now (eg: wind, hybrid vehicles, heat pumps, combined heat and power generation, hydro electricity, nuclear)” as well as “development and deployment of advanced low-carbon technologies (eg: hydrogen for mobility, fuel cells, carbon capture and storage, next generation nuclear power) over the next two decades.”

There must also be a marked improvement in energy efficiency in power generation, mobility, manufacturing, buildings, goods and services, and the solution “must encompass both developed and developing economies and give business the confidence to invest in low-carbon energy projects,” it notes. “For many low- and zero-carbon technologies to take their firm place in the market, a long-term value for GHG reductions is needed.”

Before business invests, it evaluates the future by gauging demand, assessing economic conditions and formulating an investment strategy, but the investments required for managing GHG emissions challenge this model, it explains. “The absence of clear long-term policy may mean no future demand for a given product or could leave a higher cost, early technology project without the needed incentives.”

“Business needs to articulate its requirements and, in response, government needs to provide clear signals as to where we are headed,” it continues. “Under the right conditions and given the right tools, technologies can develop and be deployed quickly - leading ultimately to a fall in emissions.”

Energy policy is set at a national level against a backdrop of financial, security and environmental signals, and a framework for climate change policy “must recognize the sovereign nature of energy policy decisions but, at the same time, provide clarity and context within which such decisions are taken.”

In the report, WBCSD calls for a quantifiable 50-year goal for managing global GHG emissions to be developed by 2010, and encouragement for the development and deployment of technologies which deliver secure benefits for large-scale low-carbon projects. It wants to modify existing international frameworks so they build progressively from local programs and to include all countries (both developing and developed) in the treaties.

International GHG markets would continue to play a role in a revised framework, directing energy investment capital in favour of low-emission projects. Programs would not need to be based on carbon trading, and a change in emissions could be derived from a program on efficiency or “based on renewable targets or nuclear expansion.”

“In some cases, the process of establishing energy efficiency targets and ambitious plans for renewable energy and nuclear power generation has already commenced,” it notes. Governments could further encourage implementation by introducing a single zero-carbon tradable certificate program that drives renewables, CCS and nuclear.

The World Business Council for Sustainable Development brings together 180 international companies in a commitment to sustainable development through economic growth, ecological balance and social progress. Members come from 30 countries and 20 industrial sectors.

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