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Summary of "TURING TO RENEWABLES: CLIMATE-SAFE ENERGY SOLUTIONS"

Core Content

The document outlines the critical role of renewable energy in achieving climate-safe energy solutions, emphasizing the need for rapid decarbonisation to meet the goals of the Paris Agreement. It is a collection of four briefs prepared by the International Renewable Energy Agency (IRENA) for COP23 in 2017, highlighting the challenges and opportunities of transitioning to a low-carbon energy system.

Main Points

1. Energy Decarbonisation is Essential

• Climate Goals: To limit global temperature rise to well below $2^{\circ}\mathrm{C}$, the world must significantly increase the share of renewable energy.
• Current Share: Renewables currently make up $15%$ of the world's primary energy supply.
• Target for 2050: IRENA suggests that renewables must reach $65%$ of the global energy supply by 2050 to meet climate targets.
• Emissions Reduction: The energy sector is responsible for $65%$ of global greenhouse gas (GHG) emissions, with electricity generation and industry as the largest contributors.
• Impact of Transition: A complete transformation to renewable energy could lead to a $70%$ reduction in energy-related $\mathrm{CO}_{2}$ emissions by 2050, compared to the Reference Case.

2. Renewable Energy Provides Socio-Economic Benefits

• Job Creation: The renewable energy sector alone could support around 26 million jobs in 2050, with net job creation surpassing job losses in the conventional energy sector.
• Economic Growth: The energy transition is projected to increase global GDP by $0.8%$ in 2050, resulting in a cumulative gain of USD 19 trillion from 2015 to 2050.
• Health Benefits: The health benefits of reducing fossil fuel combustion are estimated to outweigh the costs of decarbonisation by up to six times.
• Social Inclusiveness: Renewable energy can improve social inclusiveness and contribute to better quality of life, particularly in rural areas.

3. Renewable Energy Costs are Falling Rapidly

• Cost Competitiveness: Renewable energy technologies such as solar PV, wind, and hydropower are now more cost-competitive than fossil fuels and nuclear power.
• Cost Reductions: The levelised cost of electricity (LCOE) from solar PV fell by over $68%$ between 2010 and 2016, while onshore wind saw an $18%$ decline.
• Storage Potential: Electric vehicles and other storage technologies could provide significant battery storage capacity, helping to manage variable renewable energy sources like wind and solar.
• Investment Needs: The energy transition requires an additional USD 29 trillion in investment from 2015 to 2050, with a focus on end-use sectors and innovation.

4. Accelerating Research is Critical

• Need for Innovation: Research and development (R&D) must accelerate to make renewable solutions viable in sectors like transport and industry.
• Stranded Assets: Delaying the energy transition could result in USD 20 trillion in stranded assets, including fossil fuel reserves and inefficient buildings.
• Technology Development: IRENA highlights the importance of innovation in energy efficiency, electrification, and information and communications technologies (ICT) to support the energy transition.
• Global Collaboration: International cooperation and investment in R&D are essential to drive down the cost of zero-carbon technologies and ensure a smooth transition.

Key Information

• Paris Agreement Goals: The world must reduce emissions and decarbonise energy use to avoid exceeding the $2^{\circ}\mathrm{C}$ temperature threshold.
• Renewable Energy Targets: Achieving a $65%$ share of renewables by 2050 is necessary to align with the Paris Agreement.
• Energy Efficiency: Alongside renewables, energy efficiency measures are vital for meeting climate targets.
• Job and Economic Benefits: The transition is expected to create millions of jobs and boost GDP, with net job gains of 6 million by 2050.
• Stranded Assets: Delaying the transition could lead to significant financial losses, with USD 20 trillion in stranded assets if action is postponed by a decade.
• Cost Trends: Solar PV and wind have seen dramatic cost reductions, making them increasingly viable as primary energy sources.

Conclusion

IRENA's briefs underscore the urgency and feasibility of transitioning to renewable energy. They highlight the economic, social, and environmental benefits of this shift, while also addressing the challenges of cost, infrastructure, and policy. Accelerated deployment, innovation, and international collaboration are essential to achieving a climate-safe energy future.