50. Energy efficiency improvements and fossil fuel subsidies

Scientists have repeatedly warned that GHG emissions must peak before 2020 if the world is to avoid a temperature rise of over 2 degrees. But countries are locked into negotiations on a global climate deal that will only come into effect in 2020. I am always surprised to hear energy efficiency down-played. In so many cases, the focus is almost entirely on increasing renewable energy, which is so important, but it goes hand-in-hand with massive energy efficiency improvements. Another key area is the continuation of fossil fuel subsidies, which is simply absurd in the context of climate change. It is therefore great to see that the International Energy Agency (IEA) recently released a report proposing 4 key initiatives that could significantly reduce GHG emissions within a short period of time, while enhancing economic welfare.

A partial phase-out of fossil fuel subsidies: The IEA suggests the phase-out of fossil fuel subsidies in importing countries and a cut of 25% in subsidies in exporting countries by 2020.

Targeted energy efficiency measures in buildings, industry and transport: Energy efficiency measures in buildings and industry could deliver almost half the carbon cuts needed by 2020 to keep the world on track for global warming of less than 2 degrees.

Halving methane emissions from oil and gas extraction and transport: Measures to reduce methane releases from oil and gas operations, for example through flaring or leaks, could deliver a further 18% of the emission savings needed and could be accomplished at relatively low cost since the technology is available.

Limiting construction and use of the least-efficient coal-fired power plants: A further 20% of the emissions savings needed could come from CO2 pricing, CO2 standards for industry and limits on the use and construction of inefficient coal plants.