A fundamental transformation is required in the way we produce, deliver and consume energy. The current energy system is highly dependent on fossil fuels, whose combustion accounted for 84% of global greenhouse gas emissions in 2009. Global demand for energy is rapidly increasing, because of population and economic growth, especially in large emerging market economies, which will account for 90% of energy demand growth to 2035. At the same time, 1.3 billion people worldwide still lack access to electricity.
The OECD and IEA have released the joint report Green Growth Studies: Energy, which highlights the challenges facing energy producers and users, and how they can be addressed using green growth policies.
Introduction
Energy is a fundamental input to economic activity. Modern energy services light up our homes and schools, fuel economic activity to produce and consume, provide comfort and mobility, pump water and contribute to health and well-being. Harnessing energy sources to replace manual and animal labour was the platform of the Industrial Revolution: a period of unprecedented economic and social development.
The 20th century witnessed large increases in the global population, economic output and fossil fuel consumption. The gains from growth have been impressive for many. Yet these gains have taken a toll on a range of environmental systems where unsustainable practices have dominated. Continuing deterioration of natural resources could stress the ability to meet the needs of a growing population and undermine economic activity. Green growth could meet this challenge. Green growth is about fostering economic growth and development while ensuring that natural assets continue to provide the ecosystem services on which our well-being relies. To do this it must catalyse investment and innovation which will underpin sustained growth and give rise to new economic opportunities.
The current energy system is highly dependent on fossil fuels, whose combustion accounted for 84% of global greenhouse gas emissions in 2009. Global demand for energy is rapidly increasing, due to population and economic growth, especially in large emerging countries, which will account for 90% of energy demand growth to 2035. At the same time, nearly 20% of the global population lack access to electricity. A major transformation is required in the way we produce, deliver and consume energy.
A large-scale transformation of the global energy sector is possible, though it will require significant investment. Global emissions could be halved by 2050, using existing and emerging technologies at an additional cumulative investment of USD 46 trillion. It is vital for governments to create the enabling
policy framework to catalyse private-sector investment in the transition to a low-carbon energy sector. It is cheaper in the long-term to act now, as every USD 1 of energy sector investment not spent before 2020 will require an additional USD 4.3 to be spent after 2020 to compensate for increased greenhouse gas
emissions by building zero-carbon plants and infrastructure by 2035.
policy framework to catalyse private-sector investment in the transition to a low-carbon energy sector. It is cheaper in the long-term to act now, as every USD 1 of energy sector investment not spent before 2020 will require an additional USD 4.3 to be spent after 2020 to compensate for increased greenhouse gas
emissions by building zero-carbon plants and infrastructure by 2035.
Table of Contents
Chapter 1. Transforming the energy sector to sustain growthGreen growth requires a green engine
Addressing systemic risks and imbalances
Global energy outlook
Implications of continuing current trends
Chapter 2. Promoting the transition to green growthGreen growth and energy: What’s at stake
Potential trade-offs and adjustment costs
Key technologies for green growth and energy
A policy framework for greening energy
Policies for green growth in specific energy sectors
Chapter 3. Implementing green energy: Reshaping the political economyPolitical economy – achieving change in different country contexts
Structural adjustment
Stranded capital
Employment effects
Distributional effects
Structural adjustment
Stranded capital
Employment effects
Distributional effects
Chapter 4. Monitoring progress towards green growthThe OECD framework for green growth indicators
Energy related green growth indicators
Energy related green growth indicators
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