CANBERRA, Australia,
September 5, 2007.
The widespread adoption of renewable energy technologies has the potential to considerably reduce the growth in greenhouse gas emissions and to improve energy security, according to a consulting firm in Australia.
“With energy consumption in APEC economies projected to increase by 140%, investment in technologies to reduce GHG emissions is crucial,” says Phillip Glyde of ABARE, commenting on the study ‘Energy Security, Clean Technology Development and Climate Change.’ The report estimates that, with the world's best policies to stimulate the rapid take-up of low-emission technologies, the level of emissions could be reduced by half.
APEC economies account for half of the world’s energy use, economic output and GHG emissions, and one third of the world’s population. Under current policy settings, energy consumption in APEC economies is projected to increase by 140% by 2050, by which time GHG emissions will be 130% higher in APEC economies relative to 2004 levels.
The widespread adoption of cleaner, more advanced and energy efficient technologies has the potential to considerably reduce the growth in emissions and those investments could reduce emissions by 49% relative to baseline predictions, the study notes. If current policy settings continue, energy supply in the APEC region by 2050 would come 31% from oil, 29% from coal, 25% from gas, 9% from nuclear, 2% from hydroelectricity, 3% from biomass and 1% from all other renewables.
Under an ‘enhanced technology’ scenario, sources of energy supply would be 29% from oil, 18% from gas, 16% from coal, 14% from nuclear, 3% from hydroelectricity, 15% from biomass and 5% from other renewables. The report includes high efficiency photovoltaic power, large advanced wind generators, biomass gasification plants, geothermal hot rocks and tidal power to be renewable energy sources.
“Various supply, infrastructure and cost constraints prevent any one of these technologies from addressing the climate change challenge on its own,” it notes. “For that reason, a portfolio of these technologies will be necessary to lower, both significantly and cost effectively, the emissions intensity of electricity generation.”
Primary energy consumption under the ‘enhanced technology’ development and deployment scenario would be 32% lower in APEC economies at 2050 than would otherwise be the case. Under this scenario, consumption of fossil fuels would fall considerably, as would greenhouse gas emissions.
“The regulatory environment, which may include taxes and subsidies, can also reduce investment in energy efficiency measures or low emission technologies through their influence on the expected returns from using such technologies,” it continues. “As a result, investments in energy saving technologies are also lower than the socially optimal level. Energy pricing policies in several developing economies, for example, have been identified as an impediment to the development and uptake of renewable energy technologies.”
“APEC can continue to play an active role in reducing barriers to the development and uptake of energy efficient and renewable energy technologies and in developing appropriate funding models through the Energy Working Group, Business Advisory Council, APEC committees and senior officials and leader meetings and processes,” it adds. “Appropriate levels and methods of funding for capacity building and technology development and transfer will differ between APEC economies depending on individual country circumstances. In some economies, direct government funding for technology research, development and demonstration in collaboration with industry partners will be the preferred policy approach. However, in other economies, revenue from implementation of market based instruments to encourage GHG abatement may be used to fund technology development, demonstration and transfer.”
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