As discussed in Chapter 2, phasing out inefficient fossil fuel subsidies in nearly all regions would reduce CO2 emissions by around 700 million tonnes (Mt) by 2030. Part of the sustainable recovery plan will need to be funded through direct government expenditure. It starts with the SDG outcomes and then works back to set out what would be needed to deliver these goals in a realistic and cost-effective way. Final energy consumption would be around 350 million tonnes of oil equivalent (Mtoe) lower than it would have been otherwise by the end of the spending period. Restarting and supporting these projects – while ensuring the health of workers – could provide an immediate boost in employment and economic output. Deliver shovel-ready clean energy projects that boost resilience, Develop a strong pipeline of new projects. There would also be a small drop in methane emissions from replacing the traditional use of solid biomass in households with alternative fuel sources like liquefied petroleum gas (LPG) or with more modern cook stoves. In addition to the reductions in energy-related CO2 emissions, investment in tackling methane leaks from oil and gas operations would yield immediate results by curtailing around 0.8 Gt CO2-eq emissions (assuming that one tonne of methane is equivalent to 30 tonnes of CO2). Child-care policies, support for lifelong learning, an enabling environment for female entrepreneurs and social dialogue would also contribute to empowering women in the labour market. The drop is due to huge progress in India and to the rapid decline of solar price. This amounts to around 0.7% of global gross domestic product (GDP) in each year. Based on existing and announced policies – as described in the IEA Stated Policies Scenario (STEPS) – the world is not on course to achieve the outcomes of the UN SDGs most closely related to energy: to achieve universal access to energy (SDG 7), to reduce the severe health impacts of air pollution (part of SDG 3) and to tackle climate change (SDG 13). This additional capacity would generate nearly 320 terawatt-hours (TWh) of electricity on average each year. Status of the Market for Solar Thermal Systems ... there are a number of schemes that promote energy efficiency in buildings and also wider sustainability schemes. Innovative and more decentralised energy systems, making full use of local agricultural and energy resources (including modern bioenergy, such as biogas or bio-ethanol and solar PV), have an important part to play in improving access to electricity and progress on clean cooking. The spending associated with this plan is around $1 trillion for each of the next three years (i.e. Provide more long-term contracts and regulatory investment guarantees. IEA Bioenergy has launched a new report today, carried out under its Task 43 (Sustainable Biomass Supply), on sustainability governance approaches for bioenergy and biomaterials supply chains. The sustainable recovery plan would kick-start the reductions needed to achieve the goals of the Paris Agreement. As the figure above makes clear, the SDS trajectory is well within the envelope of these scenarios. In the power sector, 60% of the 7 million total job-years created would be in renewables. IEA Bioenergy is an organisation set up in 1978 by the International Energy Agency (IEA) with the aim of improving cooperation and information exchange between countries that have national programmes in bioenergy research, development and deployment. Making sustainable living more inspiring and affordable. Lower oil use in transport is the main cause of reduced NOX emissions. 1.5-1.6°C There is a very strong case for the energy sector to play a central part in these plans: Chapter 2 examined a range of measures, assessing their potential to create jobs and stimulate growth and their likely impact on energy security, emissions and air pollution. In some cases, it may be possible to use direct government expenditure to underpin measures such as improving effective regulatory procedures, reforming energy taxes, setting or raising actual or effective carbon prices, and reducing risks for private investment. There would be significant co-ordination gains if countries align their actions. By using analysis of policies, energy data, and technology trends, this report provides a comprehensive view of energy efficiency trends worldwide. Energy efficiency measures deliver the largest overall reductions in emissions. After the period of growth to 2023, the boost to the level of the global economy is maintained, despite the end of the spending and a tightening in the accommodative fiscal stance6. Sustainability is a big deal to us. FY191 is the second IKEA sustainability report since the relaunch of the sustainability strategy, People & Planet Positive, in 2018. A pipeline of such projects would help to maintain steady investment activity and create jobs. Download the updated IKEA Sustainability Strategy People & Planet Positive 2030 Numbers for 2018, you will find them on ingka.com This may underestimate the level of public spending since the economic downturn may reduce the relative willingness or ability of private firms to invest at historical levels. Most regions have a domestic supply chain to support construction material production and implementation, and so most of these jobs would be created within the regions where the investment takes place. For countries that currently subsidise the use of fossil fuels, strengthening reform efforts could curb fossil fuel consumption and thus reduce GHG emissions. Outdoor air pollution is reduced substantially, leading to more than 2 million fewer premature deaths globally in 2050 than projected in the STEPS. To reduce the social impact of these job losses, well-resourced retraining, capacity building and regional revitalisation programmes will be required to enable workers and communities to find attractive alternative livelihoods. Construction and manufacturing jobs only last as long as there is a steady stream of new projects, and at some point countries would need to assess the need to repopulate the project pipeline to sustain these jobs. Achieving universal access to modern energy only leads to a small increase in CO2 emissions (0.1%), the climate effect of which is more than offset by lower methane emissions due to a reduction in use of traditional biomass cookstoves. A number of countries have announced support packages for their construction, vehicle manufacturing and airline industries, for example. A further $30 billion would be spent each year to accelerate deployment of recharging networks for electric vehicles, upgrade public transport, and improve walking and cycling infrastructure. Accelerate the re-establishment of disrupted energy supply chains. Many of the jobs created by the sustainable recovery plan would match the skills of workers who lost jobs during the crisis, or would require little retraining. Since then the global goalposts have shifted, technological progress has been uneven, and emissions have continued to grow. The coronavirus pandemic may have slashed global carbon emissions but a historic slump in global energy investment this year could threaten climate goals in the longer term, according to a new report. For information on the definitions for the jobs analysis conducted for this report and its methodology, please refer to Annex A of the PDF. Provide a long-term vision on sustainability and resilience to guide investment decisions. The enormity of the shock caused by the Covid-19 pandemic is prompting governments around the world to develop economic recovery plans that will shape infrastructure and industries for decades. To achieve the temperature goal, the Paris Agreement calls for emissions to peak as soon as possible and reduce rapidly thereafter, leading to a balance between anthropogenic emissions by sources and removals by sinks (i.e. Good policy design can exploit synergies between the three parallel objectives of the SDS. GIMF is a multi-country dynamic stochastic general equilibrium model used by the IMF for policy and risk analysis (Laxton et al., 2010; Anderson et al., 2013). net-zero emissions) in the second half of this century. We hope to help and inspire people to lead more sustainable lives every day with our products. Ease regulatory approval procedures and extend tax credits schemes for electricity from renewables and other clean energy projects. Covid-19 is a huge shock to the energy system, but the response also presents an opportunity to steer the energy sector onto a … The Sustainable Development Scenario explicitly supports these broader development efforts (in contrast to most other decarbonisation scenarios), in particular through its energy access and cleaner air dimensions. Establish public co-funding schemes to reduce upfront investment costs through grants, concessional loans, public procurement and feed-in-tariffs. The Sustainable Development Scenario does not rely on net negative emissions, but if the requisite technologies became available at scale, warming could be further limited. In the three decades since we were founded, we have brought the IKEA Brand to 30 countries and millions of homes. and sustainability of energy in its 30 member ... International Energy Agency . There is a small degree of variation in the increase in global GDP in later years depending on how the near-term increase in government expenditure is assumed to be funded (e.g. Investment in better electricity grids and improved efficiency would improve electricity security by lessening the risks of outages, boosting flexibility, reducing losses and helping to integrate larger shares of variable renewables. For example, it is estimated that remittances in 2020 going to countries in sub-Saharan Africa could fall by almost 25% from 2019 levels, while remittances to countries in Latin America could fall by 19% (Ratha et al., 2020). Develop a strong pipeline of new projects. Promote auctions, grants and rebates that seek to improve the energy efficiency of new and existing buildings. The sustainable recovery plan would begin the process of structurally reorienting countries’ energy sectors by accelerating the shift towards electricity and increasing the share of energy supplied by low-carbon energy sources. The recent reduction in LPG prices substantially reduces the payback period for households switching to LPG cooking equipment, so long as savings are passed on to consumers and not accompanied by tax increases. It takes account of the circumstances of individual countries, as well as existing energy project pipelines and current market conditions. This year’s report focuses on the impact of the Covid-19 pandemic on energy efficiency and global energy markets this year, as well as analysis of 2019 trends. There is a significant shift in capital spending away from fossil fuels to renewables and other low-carbon sources as well as to electricity. The four main areas of IEA focus are: Of course, the specific policies adopted will vary from country to country depending on their particular circumstances and needs. This should help to boost the development of new low-emission and resilient infrastructure projects, attract private investors, expand markets, and support governments in reforming climate and investment policies (OECD/The World Bank/UN Environment, 2018). Response to a need. In the WEO-2020, the Sustainable Development Scenario also integrates the stimulus packages required for a global sustainable recovery from Covid-19. If the sustainable recovery plan were to be implemented by all countries globally, this would lead to the creation of around 9 million full-time equivalent energy sector jobs in construction and manufacturing by the end of 2021. “The IEA again misses the mark where it matters the most, completely ignoring the link between sustainable recovery and staying within 1.5°C of warming. Energy systems would become more sustainable as a result of the plan. There would also be more than 0.5 million permanent jobs associated with operating and maintaining the assets constructed by the sustainable recovery plan. However, we estimate that around 40% of the jobs created globally in the sustainable recovery plan would be in specialised positions, which would require substantial retraining programmes. The IEA undermines its own clean stimulus message not only within the contents of the report, but with companion analysis and communications that continue promoting fossil fuels. Of the 27 million job-years created worldwide by the sustainable recovery plan, 35% are in energy efficiency projects in the buildings and industry sectors, and just over 25% are in the electricity sector. Investment in new industries, such battery manufacturing and hydrogen production, could also provide an important runway for future job growth. Many energy measures – in particular energy efficiency – would deliver savings for consumers and so increase household disposable income for other purposes, thereby supporting employment in other economic activities. These conditions would require achieving net zero emissions globally by around 2050. from 2021 to 2023). through an increase in taxes or reduction in government consumption). Some rely on income from oil and gas exports and have seen a major drop in revenues. It is for governments to make their own decisions about what measures to adopt and how much to spend, but action on the basis of the measures in the plan would provide a major boost to the global economy, create millions of new jobs, and ensure that the recovery yields long-lasting benefits for energy sustainability and resilience. For low-income countries, it is critical to accelerate efforts to provide, The significant decline in fossil fuel prices presents an opportunity to further the process of reforming inefficient. Cross-border collaboration could also be useful in helping to re-establish some international supply chains disrupted by the Covid-19 crisis. However, if LDAR programmes stop, new leaks that could occur would not be found and fugitive emissions would rise again. International co‑operation and trade agreements could help reduce potential areas of conflict. The transport sector was severely affected by the Covid-19 lockdowns across most countries. Jobs related to cars account for over 10%, and those arising from other transport measures are also about 10%. Investments in the 2021-2023 period are therefore aligned with the Sustainable Recovery depicted in the World Energy Outlook Special Report. The cost of sustaining these jobs is not included in the sustainable recovery plan: they would be funded from the operating revenues of firms using the assets developed under the plan. IEA Bioenergy to launch a new report on sustainability governance approaches for bioenergy and biomaterials supply chains. Oil 2020, the International Energy Agency’s annual outlook for global oil markets, examines the key issues in demand, supply, refining and trade to 2025.. This report summarizes the main conclusions of a joint workshop of IEA Bioenergy Task 39 and the European Commission’s Joint Research Centre in Ispra (Italy), 16-17 May 2019. The Covid-19 crisis has highlighted the importance of developing more resilient and sustainable energy systems that are capable of withstanding future shocks and improving the health and well-being of citizens; but the disruptions occurring to energy markets and investment trends has made this more difficult to achieve. Annual reports The Annual Report highlights the activities and accomplishments of the IEA PVPS Technology Collaboration Program. Domestic policy frameworks and market designs play a key role in attracting private finance. This additional investment cost is partially counterbalanced by reduced fuel costs, which mitigates the impact on the energy bills paid by consumers. Globally, males hold around 93% of construction jobs and more than 60% of manufacturing jobs. Bioenergy and bioeconomy goals require the development of sustainable biomass value chains. The sustainable recovery plan would provide further long-term employment by “inducing” further jobs across the economy: spending by those in new jobs would lead to further job creation in other sectors. The near-term focus of the sustainable recovery plan is to stabilise existing projects to maintain jobs and to launch new projects with very short lead times to jump-start new employment. Many efficiency measures would lead to consumer savings, often within a short period of time; they would also provide immediate improvements in the resilience of energy systems. A number of end-uses in buildings could switch to renewable sources, such as solar water heaters and biomass boilers, to reduce fossil fuel and electricity use. Eliminating the 10 Gt CO2 energy-sector emissions remaining in SDS in 2050 would not amount to a simple extension of the changes to the energy system described in the SDS. This enables 90 GW of hydro and nuclear capacity that would otherwise have been soon retired to continue to provide low-carbon power well beyond the end of the recovery plan. Unless gender occupational segregation is addressed, the jobs created by sustainable recovery plans are likely to be taken mainly by men. For example, a large portion of the work on large civil construction projects (such as hydro or nuclear power) is highly technical. IEA brings a deep understanding of the complexities involved with plant, refinery, manufacturing, distribution, and other industrial facility construction. In countries where reducing health impacts of air pollution is an urgent issue, low-carbon measures that reduce the overall quantity of fossil fuels being used – including energy efficiency measures on the demand side, and a shift to renewables on the supply side – are an important part of an action plan to tackle those health-related impacts. Accelerate renovation and construction activity by introducing or strengthening requirements for highly efficient or near-zero energy buildings. A wide range of policies would be required to support the deployment of this plan with the aim of delivering shovel-ready clean energy projects that boost resilience; developing a strong pipeline of new projects; tailoring support for distressed industries; mobilising large levels of private finance; and strengthening international co-operation. 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