A low-carbon economy (LCE) or decarbonised economy is a concept for a desirable economy which has relatively low greenhouse gas (GHG) emissions per person.[ citation needed ] GHG emissions due to human activity are the dominant cause of observed climate change since the mid-20th century. [2] 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. An even more ambitious target than low-carbon economies are zero-carbon economies with net zero emissions. An example are zero-carbon cities.
Shifting from high-carbon economies to low-carbon economies on a global scale could bring substantial benefits for all countries. [3] It would also contribute to climate change mitigation.
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." [4] : 2
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Climate change mitigation |
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GHG emissions due to human activity are the dominant cause of observed climate change since the mid-20th century. [2] 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. [2]
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. [5]
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). [6] : 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.
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. [7] [8]
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. [9]
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, [10] trade, employment, health, energy security, and industrial competitiveness. [11] [12]
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. [13] [14] [15] Employment opportunities by the green transition are associated with the use of renewable energy sources or building activity for infrastructure improvements and renovations. [16]
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. [17]
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. [18]
Low carbon power generation sources include wind power, solar power, nuclear power and most hydropower. [19] [20] 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. [21] 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. [18]As of 2021, the expansion of nuclear energy as a method of achieving a low-carbon economy has varying degrees of support. [22] Agencies and organizations that believe decarbonization is not possible without some nuclear power expansion include the United Nations Economic Commission for Europe, [23] the International Energy Agency (IEA), [24] the International Atomic Energy Agency, [25] and the Energy Impact Center (EIC). [26] 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. [26] [27]
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Environmental economics |
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An energy transition (or energy system transformation) is a significant structural change in an energy system regarding supply and consumption. Currently, a transition to sustainable energy (mostly renewable energy) is underway to limit climate change. It is also called renewable energy transition. The current transition is driven by a recognition that global greenhouse-gas emissions must be drastically reduced. This process involves phasing-down fossil fuels and re-developing whole systems to operate on low carbon electricity. [28] A previous energy transition took place during the industrial revolution and involved an energy transition from wood and other biomass to coal, followed by oil and most recently natural gas. [29] [30]
As of 2019, 85% of the world's energy needs are met by burning fossil fuels. [31] : 46 Energy production and consumption are responsible for 76% of annual human-caused greenhouse gas emissions as of 2018. [32] [33] 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. [34] Since the late 2010s, the renewable energy transition is also driven by the rapidly increasing competitiveness of both solar and wind power. [35] Another motivation for the transition is to limit other environmental impacts of the energy industry. [36]
The renewable energy transition includes a shift from internal combustion engine powered vehicles to more public transport, reduced air travel and electric vehicles. [37] Building heating is being electrified, with heat pumps as the most efficient technology by far. [38] For electrical grid scale flexibility, energy storage and super grids are vital to allow for variable, weather-dependent technologies. [39]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. [40]
Renewable energy is energy from renewable resources that are naturally replenished on a human timescale. Renewable resources include sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy sources are sustainable, some are not. For example, some biomass sources are considered unsustainable at current rates of exploitation. Renewable energy is often used for electricity generation, heating and cooling. Renewable energy projects are typically large-scale, but they are also suited to rural and remote areas and developing countries, where energy is often crucial in human development.
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 require a geological process of millions of years.
Energy development is the field of activities focused on obtaining sources of energy from natural resources. These activities include the production of renewable, nuclear, and fossil fuel derived sources of energy, and for the recovery and reuse of energy that would otherwise be wasted. Energy conservation and efficiency measures reduce the demand for energy development, and can have benefits to society with improvements to environmental issues.
Energy is sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs." Most definitions of sustainable energy include considerations of environmental aspects such as greenhouse gas emissions and social and economic aspects such as energy poverty. Renewable energy sources such as wind, hydroelectric power, solar, and geothermal energy are generally far more sustainable than fossil fuel sources. However, some renewable energy projects, such as the clearing of forests to produce biofuels, can cause severe environmental damage.
Climate change mitigation is action to limit climate change. This action either reduces emissions of greenhouse gases or removes those gases from the atmosphere. The recent rise in global temperature is mostly due to emissions from burning fossil fuels such as coal, oil, and natural gas. There are various ways that mitigation can reduce emissions. These are transitioning to sustainable energy sources, conserving energy, and increasing efficiency. It is possible to remove carbon dioxide from the atmosphere. This can be done by enlarging forests, restoring wetlands and using other natural and technical processes. The name for these processes is carbon sequestration. Governments and companies have pledged to reduce emissions to prevent dangerous climate change. These pledges are in line with international negotiations to limit warming.
Biomass, in the context of energy production, is matter from recently living organisms which is used for bioenergy production. Examples include wood, wood residues, energy crops, agricultural residues including straw, and organic waste from industry and households. Wood and wood residues is the largest biomass energy source today. Wood can be used as a fuel directly or processed into pellet fuel or other forms of fuels. Other plants can also be used as fuel, for instance maize, switchgrass, miscanthus and bamboo. The main waste feedstocks are wood waste, agricultural waste, municipal solid waste, and manufacturing waste. Upgrading raw biomass to higher grade fuels can be achieved by different methods, broadly classified as thermal, chemical, or biochemical.
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.
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.
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%.
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.
Norway is a large energy producer, and one of the world's largest exporters of oil. Most of the electricity in the country is produced by hydroelectricity. Norway is one of the leading countries in the electrification of its transport sector, with the largest fleet of electric vehicles per capita in the world.
The United States produced 5.2 billion metric tons of carbon dioxide equivalent greenhouse gas (GHG) emissions in 2020, the second largest in the world after greenhouse gas emissions by China and among the countries with the highest greenhouse gas emissions per person. In 2019 China is estimated to have emitted 27% of world GHG, followed by the United States with 11%, then India with 6.6%. In total the United States has emitted a quarter of world GHG, more than any other country. Annual emissions are over 15 tons per person and, amongst the top eight emitters, is the highest country by greenhouse gas emissions per person. However, the IEA estimates that the richest decile in the US emits over 55 tonnes of CO2 per capita each year. Because coal-fired power stations are gradually shutting down, in the 2010s emissions from electricity generation fell to second place behind transportation which is now the largest single source. In 2020, 27% of the GHG emissions of the United States were from transportation, 25% from electricity, 24% from industry, 13% from commercial and residential buildings and 11% from agriculture. In 2021, the electric power sector was the second largest source of U.S. greenhouse gas emissions, accounting for 25% of the U.S. total. These greenhouse gas emissions are contributing to climate change in the United States, as well as worldwide.
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.
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.
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.
Greenhouse gas emissions are one of the environmental impacts of electricity generation. Measurement of life-cycle greenhouse gas emissions involves calculating the global warming potential of energy sources through life-cycle assessment. These are usually sources of only electrical energy but sometimes sources of heat are evaluated. The findings are presented in units of global warming potential per unit of electrical energy generated by that source. The scale uses the global warming potential unit, the carbon dioxide equivalent, and the unit of electrical energy, the kilowatt hour (kWh). The goal of such assessments is to cover the full life of the source, from material and fuel mining through construction to operation and waste management.
An energy transition is a significant structural change in an energy system regarding supply and consumption. Currently, a transition to sustainable energy is underway to limit climate change. It is also called renewable energy transition. The current transition is driven by a recognition that global greenhouse-gas emissions must be drastically reduced. This process involves phasing-down fossil fuels and re-developing whole systems to operate on low carbon electricity. A previous energy transition took place during the industrial revolution and involved an energy transition from wood and other biomass to coal, followed by oil and most recently natural gas.
Co-benefits of climate change mitigation are the benefits related to mitigation measures which reduce greenhouse gas emissions or enhance carbon sinks.
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.
World energy supply and consumption refers to the global primary energy production, energy conversion and trade, and final consumption of energy. Energy can be used in various different forms, as processed fuels or electricity, or for various different purposes, like for transportation or electricity generation. Energy production and consumption are an important part of the economy. A serious problem concerning energy production and consumption is greenhouse gas emissions. Of about 50 billion tonnes worldwide annual total greenhouse gas emissions, 36 billion tonnes of carbon dioxide was emitted due to energy in 2021.
... nuclear plants ... currently provide 1/3 of the EU's electricity and 2/3 of its low-carbon energy.