Low-carbon economy

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Examples for methods to transition towards a low-carbon economy: Concentrated solar power with molten salt heat storage in Spain; wind energy in South Africa; electrified public transport in Singapore; and renewable energy sources, especially solar photovoltaic and wind, are providing an increasing share of electricity production. [1]

A low-carbon economy (LCE) is an economy which absorbs as much greenhouse gas as it emits. [2] Greenhouse gas (GHG) emissions due to human activity are the dominant cause of observed climate change since the mid-20th century. [3] There are many proven approaches for moving to a low-carbon economy, such as encouraging renewable energy transition, energy conservation, electrification of transportation (e.g. electric vehicles), and carbon capture and storage. An example are zero-carbon cities.

Contents

Shifting from high-carbon economies to low-carbon economies on a global scale could bring substantial benefits for all countries. [4] It would also contribute to climate change mitigation.

Definition and terminology

There are many synonyms or similar terms in use for low-carbon economy which stress different aspects of the concept, for example: green economy, sustainable economy, carbon-neutral economy, low-emissions economy, climate-friendly economy, decarbonised economy.

The term carbon in low-carbon economy is short hand for all greenhouse gases.

The UK Office for National Statistics published the following definition in 2017: "The low carbon economy is defined as economic activities that deliver goods and services that generate significantly lower emissions of greenhouse gases; predominantly carbon dioxide." [5] : 2 

Rationale and aims

Countries that managed to reduce their greenhouse gas emissions (working towards a low-carbon economy) while still growing their economy. This is called eco-economic decoupling. Absolute-decoupling-Growth-and-falling-emissions-all.png
Countries that managed to reduce their greenhouse gas emissions (working towards a low-carbon economy) while still growing their economy. This is called eco-economic decoupling.

GHG emissions due to human activity are the dominant cause of observed climate change since the mid-20th century. [3] Continued emission of greenhouse gases will cause long-lasting changes around the world, increasing the likelihood of severe, pervasive, and irreversible effects for people and ecosystems. [3]

Nations may seek to become low-carbon or decarbonised economies as a part of a national climate change mitigation strategy. A comprehensive strategy to mitigate climate change is through carbon neutrality. [6]

Methods

Achieving a low-carbon economy involves reducing greenhouse gas emissions in all sectors that produce greenhouse gases, for example energy, transportation, industry, and agriculture. The literature often speaks of a transition from a high-carbon economy to a low-carbon economy. This transition should take place in a just manner (this is termed just transition). [7] : 75 

There are many strategies and approaches for moving to a low-carbon economy, such as encouraging renewable energy transition, efficient energy use, energy conservation, electrification of transportation (e.g. electric vehicles), carbon capture and storage, climate-smart agriculture. This requires for example suitable energy policies, financial incentives (e.g. emissions trading, carbon tax), individual action on climate change, business action on climate change.

Actions taken by countries

Wind Turbine with workers in Boryspil, Ukraine Wind Turbine with Workers - Boryspil - Ukraine (43478128644).jpg
Wind Turbine with workers in Boryspil, Ukraine

On the international scene, the most prominent early step in the direction of a low-carbon economy was the signing of the Kyoto Protocol, which came into force in 2005, under which most industrialized countries committed to reduce their carbon emissions. [8] [9]

OECD countries could learn from each other and follow the examples of these countries in these sectors: Switzerland for their energy sector, UK for their industry, Netherlands for their transport sector, South Korea for their agriculture, and Sweden for their building sector. [10]

Co-benefits

Solar array at Nellis Solar Power Plant. These panels track the sun in one axis. Nellis AFB Solar panels.jpg
Solar array at Nellis Solar Power Plant. These panels track the sun in one axis.

The main benefit of a transition to low-carbon economies is that it would contribute towards climate change mitigation. Apart from that, other co-benefits can also be identified: Low-carbon economies present multiple benefits to ecosystem resilience, [11] trade, employment, health, energy security, and industrial competitiveness. [12] [13]

During the green transition, workers in carbon-intensive industries are more likely to lose their jobs. The transition to a carbon-neutral economy will put more jobs at danger in regions with higher percentages of employment in carbon-intensive industries. [14] [15] [16] Employment opportunities by the green transition are associated with the use of renewable energy sources or building activity for infrastructure improvements and renovations. [17]

Low emission industrial development and resource efficiency can offer many opportunities to increase the competitiveness of economies and companies. According to the Low Emission Development Strategies Global Partnership (LEDS GP), there is often a clear business case for switching to lower emission technologies, with payback periods ranging largely from 0.5–5 years, leveraging financial investment. [18]

Energy aspects

Low-carbon electricity

This section is an excerpt from Low-carbon electricity.[ edit ]
Share of primary energy from low-carbon sources, 2018 Low-carbon-share-energy.svg
Share of primary energy from low-carbon sources, 2018

Low-carbon electricity or low-carbon power is electricity produced with substantially lower greenhouse gas emissions over the entire lifecycle than power generation using fossil fuels.[ citation needed ] The energy transition to low-carbon power is one of the most important actions required to limit climate change. [19]

Low carbon power generation sources include wind power, solar power, nuclear power and most hydropower. [20] [21] The term largely excludes conventional fossil fuel plant sources, and is only used to describe a particular subset of operating fossil fuel power systems, specifically, those that are successfully coupled with a flue gas carbon capture and storage (CCS) system. [22] Globally almost 40% of electricity generation came from low-carbon sources in 2020: about 10% being nuclear power, almost 10% wind and solar, and around 20% hydropower and other renewables. [19]

Nuclear power

As of 2021, the expansion of nuclear energy as a method of achieving a low-carbon economy has varying degrees of support. [23] Agencies and organizations that believe decarbonization is not possible without some nuclear power expansion include the United Nations Economic Commission for Europe, [24] the International Energy Agency (IEA), [25] the International Atomic Energy Agency, [26] and the Energy Impact Center (EIC). [27] Both IEA and EIC believe that widespread decarbonization must occur by 2040 in order mitigate the adverse effects of climate change and that nuclear power must play a role. The latter organization suggests that net-negative carbon emissions are possible using nuclear power to fuel carbon capture technology. [27] [28]

Energy transition

This section is an excerpt from Energy transition.[ edit ]
Progress of current energy transition to renewable energy: Fossil fuels such as coal, oil, and natural gas still remain the world's primary energy sources, even as renewables are increasing in use. Global Energy Consumption.svg
Progress of current energy transition to renewable energy: Fossil fuels such as coal, oil, and natural gas still remain the world's primary energy sources, even as renewables are increasing in use.

An energy transition (or energy system transformation) is a major structural change to energy supply and consumption in an energy system. Currently, a transition to sustainable energy is underway to limit climate change. As much sustainable energy is renewable it is also known as the renewable energy transition. The current transition aims to reduce greenhouse gas emissions from energy quickly and sustainably, mostly by phasing-down fossil fuels and changing as many processes as possible to operate on low carbon electricity. [30] A previous energy transition perhaps took place during the Industrial Revolution from 1760 onwards, from wood and other biomass to coal, followed by oil and later natural gas. [31] [32]

Over three-quarters of the world's energy needs are met by burning fossil fuels, but this usage emits greenhouse gases. [33] Energy production and consumption are responsible for most human-caused greenhouse gas emissions. [34] To meet the goals of the 2015 Paris Agreement on climate change, emissions must be reduced as soon as possible and reach net-zero by mid-century. [35] Since the late 2010s, the renewable energy transition has also been driven by the rapidly falling cost of both solar and wind power. [36] Another aim for the energy transition is to reduce the health and environmental impacts of the energy industry. [37] Those impacts are not only about climate change but also about human toxicity, resource use, deaths from air pollution, and others. [37] : 49 

Heating of buildings is being electrified, with heat pumps being the most efficient technology by far. [38] To improve the flexibility of electrical grids, the installation of energy storage and super grids are vital to enable the use of variable, weather-dependent technologies. [39] However fossil-fuel subsidies are slowing the energy transition. [40] [41]

Indices for comparison

The GeGaLo index of geopolitical gains and losses assesses how the geopolitical position of 156 countries may change if the world fully transitions to renewable energy resources. Former fossil fuel exporters are expected to lose power, while the positions of former fossil fuel importers and countries rich in renewable energy resources is expected to strengthen. [42]

See also

Related Research Articles

<span class="mw-page-title-main">Fossil fuel</span> Fuel formed over millions of years from dead plants and animals

A fossil fuel is a hydrocarbon-containing material such as coal, oil, and natural gas, formed naturally in the Earth's crust from the remains of dead plants and animals that is extracted and burned as a fuel. Fossil fuels may be burned to provide heat for use directly, to power engines, or to generate electricity. Some fossil fuels are refined into derivatives such as kerosene, gasoline and propane before burning. The origin of fossil fuels is the anaerobic decomposition of buried dead organisms, containing organic molecules created by photosynthesis. The conversion from these materials to high-carbon fossil fuels typically requires a geological process of millions of years.

<span class="mw-page-title-main">Hydrogen economy</span> Using hydrogen to decarbonize sectors which are hard to electrify

The hydrogen economy is an umbrella term for the roles hydrogen can play alongside low-carbon electricity to reduce emissions of greenhouse gases. The aim is to reduce emissions where cheaper and more energy-efficient clean solutions are not available. In this context, hydrogen economy encompasses the production of hydrogen and the use of hydrogen in ways that contribute to phasing-out fossil fuels and limiting climate change.

<span class="mw-page-title-main">Sustainable energy</span> Energy that responsibly meets social, economic, and environmental needs

Energy is sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs." Definitions of sustainable energy usually look at its effects on the environment, the economy, and society. These impacts range from greenhouse gas emissions and air pollution to energy poverty and toxic waste. Renewable energy sources such as wind, hydro, solar, and geothermal energy can cause environmental damage, but are generally far more sustainable than fossil fuel sources.

<span class="mw-page-title-main">Energy policy</span> How a government or business deals with energy

Energy policy are the government's strategies and decisions regarding the production, distribution, and consumption of energy within a specific jurisdiction.The decisions regarding energy policy will affect how high the greenhouse gas emissions by that country are. Energy policy is closely related to climate change mitigation policies because the energy sector emits more greenhouse gas worldwide than any other sector. The attributes of energy policy include legislation, international treaties, guidelines for energy conservation, energy subsidies and other public policy techniques.

<span class="mw-page-title-main">Climate change mitigation</span> Actions to reduce net greenhouse gas emissions to limit climate change

Climate change mitigation (or decarbonisation) is action to limit the greenhouse gases in the atmosphere that cause climate change. Greenhouse gas emissions are primarily caused by people burning fossil fuels such as coal, oil, and natural gas. Phasing out fossil fuel use can happen by conserving energy and replacing fossil fuels with clean energy sources such as wind, hydro, solar, and nuclear power. Secondary mitigation strategies include changes to land use and removing carbon dioxide (CO2) from the atmosphere. Governments have pledged to reduce greenhouse gas emissions, but actions to date are insufficient to avoid dangerous levels of climate change.

<span class="mw-page-title-main">Energy policy of the United Kingdom</span> United Kingdom legislation

The energy policy of the United Kingdom refers to the United Kingdom's efforts towards reducing energy intensity, reducing energy poverty, and maintaining energy supply reliability. The United Kingdom has had success in this, though energy intensity remains high. There is an ambitious goal to reduce carbon dioxide emissions in future years, but it is unclear whether the programmes in place are sufficient to achieve this objective. Regarding energy self-sufficiency, UK policy does not address this issue, other than to concede historic energy security is currently ceasing to exist.

<span class="mw-page-title-main">Electric energy consumption</span> Worldwide consumption of electricity

Electric energy consumption is energy consumption in the form of electrical energy. About a fifth of global energy is consumed as electricity: for residential, industrial, commercial, transportation and other purposes. Quickly increasing this share by further electrification is extremely important to limit climate change, because most other energy is consumed by burning fossil fuels thus emitting greenhouse gases which trap heat.

<span class="mw-page-title-main">Energy policy of the European Union</span> Legislation in the area of energetics in the European Union

The energy policy of the European Union focuses on energy security, sustainability, and integrating the energy markets of member states. An increasingly important part of it is climate policy. A key energy policy adopted in 2009 is the 20/20/20 objectives, binding for all EU Member States. The target involved increasing the share of renewable energy in its final energy use to 20%, reduce greenhouse gases by 20% and increase energy efficiency by 20%. After this target was met, new targets for 2030 were set at a 55% reduction of greenhouse gas emissions by 2030 as part of the European Green Deal. After the Russian invasion of Ukraine, the EU's energy policy turned more towards energy security in their REPowerEU policy package, which boosts both renewable deployment and fossil fuel infrastructure for alternative suppliers.

<span class="mw-page-title-main">Energy policy of Australia</span> Overview of the energy policy of Australia

The energy policy of Australia is subject to the regulatory and fiscal influence of all three levels of government in Australia, although only the State and Federal levels determine policy for primary industries such as coal. Federal policies for energy in Australia continue to support the coal mining and natural gas industries through subsidies for fossil fuel use and production. Australia is the 10th most coal-dependent country in the world. Coal and natural gas, along with oil-based products, are currently the primary sources of Australian energy usage and the coal industry produces over 30% of Australia's total greenhouse gas emissions. In 2018 Australia was the 8th highest emitter of greenhouse gases per capita in the world.

<span class="mw-page-title-main">Greenhouse gas emissions</span> Sources and amounts of greenhouse gases emitted to the atmosphere from human activities

Greenhouse gas (GHG) emissions from human activities intensify the greenhouse effect. This contributes to climate change. Carbon dioxide, from burning fossil fuels such as coal, oil, and natural gas, is one of the most important factors in causing climate change. The largest emitters are China followed by the United States. The United States has higher emissions per capita. The main producers fueling the emissions globally are large oil and gas companies. Emissions from human activities have increased atmospheric carbon dioxide by about 50% over pre-industrial levels. The growing levels of emissions have varied, but have been consistent among all greenhouse gases. Emissions in the 2010s averaged 56 billion tons a year, higher than any decade before. Total cumulative emissions from 1870 to 2017 were 425±20 GtC from fossil fuels and industry, and 180±60 GtC from land use change. Land-use change, such as deforestation, caused about 31% of cumulative emissions over 1870–2017, coal 32%, oil 25%, and gas 10%.

<span class="mw-page-title-main">Renewable energy commercialization</span> Deployment of technologies harnessing easily replenished natural resources

Renewable energy commercialization involves the deployment of three generations of renewable energy technologies dating back more than 100 years. First-generation technologies, which are already mature and economically competitive, include biomass, hydroelectricity, geothermal power and heat. Second-generation technologies are market-ready and are being deployed at the present time; they include solar heating, photovoltaics, wind power, solar thermal power stations, and modern forms of bioenergy. Third-generation technologies require continued R&D efforts in order to make large contributions on a global scale and include advanced biomass gasification, hot-dry-rock geothermal power, and ocean energy. In 2019, nearly 75% of new installed electricity generation capacity used renewable energy and the International Energy Agency (IEA) has predicted that by 2025, renewable capacity will meet 35% of global power generation.

<span class="mw-page-title-main">Fossil fuel phase-out</span> Gradual reduction of the use and production of fossil fuels

Fossil fuel phase-out is the gradual reduction of the use and production of fossil fuels to zero, to reduce deaths and illness from air pollution, limit climate change, and strengthen energy independence. It is part of the ongoing renewable energy transition, but is being hindered by fossil fuel subsidies.

<span class="mw-page-title-main">Low-carbon electricity</span> Power produced with lower carbon dioxide emissions

Low-carbon electricity or low-carbon power is electricity produced with substantially lower greenhouse gas emissions over the entire lifecycle than power generation using fossil fuels. The energy transition to low-carbon power is one of the most important actions required to limit climate change.

Energy subsidies are measures that keep prices for customers below market levels, or for suppliers above market levels, or reduce costs for customers and suppliers. Energy subsidies may be direct cash transfers to suppliers, customers, or related bodies, as well as indirect support mechanisms, such as tax exemptions and rebates, price controls, trade restrictions, and limits on market access.

<span class="mw-page-title-main">Greenhouse gas emissions by Australia</span> Release of gases from Australia which contribute to global warming

Greenhouse gas emissions by Australia totalled 533 million tonnes CO2-equivalent based on greenhouse gas national inventory report data for 2019; representing per capita CO2e emissions of 21 tons, three times the global average. Coal was responsible for 30% of emissions. The national Greenhouse Gas Inventory estimates for the year to March 2021 were 494.2 million tonnes, which is 27.8 million tonnes, or 5.3%, lower than the previous year. It is 20.8% lower than in 2005. According to the government, the result reflects the decrease in transport emissions due to COVID-19 pandemic restrictions, reduced fugitive emissions, and reductions in emissions from electricity; however, there were increased greenhouse gas emissions from the land and agriculture sectors.

<span class="mw-page-title-main">Energy in Turkey</span> Energy used and produced in Turkey

Energy consumption per person in Turkey is similar to the world average, and over 85 per cent is from fossil fuels. From 1990 to 2017 annual primary energy supply tripled, but then remained constant to 2019. In 2019, Turkey's primary energy supply included around 30 per cent oil, 30 per cent coal, and 25 per cent gas. These fossil fuels contribute to Turkey's air pollution and its above average greenhouse gas emissions. Turkey mines its own lignite but imports three-quarters of its energy, including half the coal and almost all the oil and gas it requires, and its energy policy prioritises reducing imports.

<i>Energiewende</i> Ongoing energy transition in Germany

The Energiewende is the ongoing energy transition by Germany to a low carbon, environmentally sound, reliable, and affordable energy supply. The new system intends to rely heavily on renewable energy, energy efficiency, and energy demand management.

<span class="mw-page-title-main">Energy transition</span> Significant structural change in an energy system

An energy transition is a major structural change to energy supply and consumption in an energy system. Currently, a transition to sustainable energy is underway to limit climate change. As much sustainable energy is renewable it is also known as the renewable energy transition. The current transition aims to reduce greenhouse gas emissions from energy quickly and sustainably, mostly by phasing-down fossil fuels and changing as many processes as possible to operate on low carbon electricity. A previous energy transition perhaps took place during the Industrial Revolution from 1760 onwards, from wood and other biomass to coal, followed by oil and later natural gas.

<span class="mw-page-title-main">Greenhouse gas emissions by China</span> Emissions of gases harmful to the climate from China

China's greenhouse gas emissions are the largest of any country in the world both in production and consumption terms, and stem mainly from coal burning, including coal power, coal mining, and blast furnaces producing iron and steel. When measuring production-based emissions, China emitted over 14 gigatonnes (Gt) CO2eq of greenhouse gases in 2019, 27% of the world total. When measuring in consumption-based terms, which adds emissions associated with imported goods and extracts those associated with exported goods, China accounts for 13 gigatonnes (Gt) or 25% of global emissions.

<span class="mw-page-title-main">World energy supply and consumption</span> Global production and usage of energy

World energy supply and consumption refers to the global supply of energy resources and its consumption. The system of global energy supply consists of the energy development, refinement, and trade of energy. Energy supplies may exist in various forms such as raw resources or more processed and refined forms of energy. The raw energy resources include for example coal, unprocessed oil & gas, uranium. In comparison, the refined forms of energy include for example refined oil that becomes fuel and electricity. Energy resources may be used in various different ways, depending on the specific resource, and intended end use. Energy production and consumption play a significant role in the global economy. It is needed in industry and global transportation. The total energy supply chain, from production to final consumption, involves many activities that cause a loss of useful energy.

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  40. ↑ "Abolishing fossil fuel subsidies: a brain teaser rather than a no-brainer". Reforming fossil fuel subsidies is a complex task for politicians. All in all, our study shows that abolishing fossil fuel subsidies is a no-brainer only for a limited number of subsidies. Abolishing inventoried fossil subsidies does not appear to help the energy transition in all cases. It is important to assess policies from the perspective of adequate pricing of climate damage and other externalities.
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