Featured Research

from universities, journals, and other organizations

Putting a price tag on the 2 degree Celsius climate target

Date:
July 2, 2014
Source:
International Institute for Applied Systems Analysis
Summary:
Addressing climate change will require substantial new investment in low-carbon energy and energy efficiency -- but no more than what is currently spent on today's fossil-dominated energy system, according to new research. To limit climate change to 2 degrees Celsius, low-carbon energy options will need additional investments of about US $800 billion a year globally from now to mid-century, according to a new study.

To limit climate change to 2 Celsius, low-carbon energy options will need additional investments of about US $800 billion a year globally from now to mid-century, according to a new study published in the journal Climate Change Economics. But much of that capital could come from shifting subsidies and investments away from fossil fuels and associated technologies. Worldwide, fossil subsidies currently amount to around $500 billion per year.

"We know that if we want to avoid the worst impacts of climate change, we need to drastically transform our energy system," says IIASA researcher David McCollum, who led the study. "This is a comprehensive analysis to show how much investment capital is needed to successfully make that transition."

The study, part of a larger EU research project examining the implications and implementation needs of climate policies consistent with the internationally agreed 2 C target, compared the results from six separate global energy-economic models, each with regional- and country-level detail. The authors examined future scenarios for energy investment based on a variety of factors, including technology progress, efficiency potential, economics, regional socio-economic development, and climate policy.

Investments in clean energy currently total around $200 to 250 billion per year, and reference scenarios show that with climate policies currently on the books, this is likely to grow to around $400 billion. However, the amount needed to limit climate change to the 2 target amounts to around $1200 billion, the study shows.

The energy investments needed to address climate change continue to be an area of large uncertainty. By comparing the results from multiple models, the scientists were able to better define the costs of addressing climate change.

"Many countries say that they're on board with the a target of 2 Celsius global mean temperature stabilization by 2100; some have even made commitments to reduce their greenhouse gas emissions. But until now, it hasn't been very clear how to get to that point, at least from an investment point of view. It's high time we think about how much capital is needed for new power plants, biofuel refineries, efficient vehicles, and other technologies -- and where those dollars need to flow -- so that we get the emissions reductions we want," says McCollum.

IIASA Energy Program Director Keywan Riahi, another study co-author and project leader, says, "Given that energy-supply technologies and infrastructure are characterized by long lifetimes of 30 to 60 years or more, there's a considerable amount of technological inertia in the system that could impede a rapid transformation. That's why the energy investment decisions of the next several years are so important: because they will shape the direction of the energy transition path for many years to come."

The study shows that the greatest investments will be needed in rapidly developing countries, namely in Asia, Latin America, and Sub-Saharan Africa.

"Energy investment in these countries is poised to increase substantially anyway. But if we're serious about addressing climate change, we must find ways to direct more investment to these key regions. Clever policy designs, including carbon pricing mechanisms, can help." says Massimo Tavoni, researcher at the Fondazione Eni Enrico Mattei, a climate research center in Italy, and overall coordinator of the LIMITS project, of which the new study is a part.

The researchers note that their analysis of future investment costs does not attempt to quantify the potentially major fuel savings from switching from fossil fuels to renewable sources, such as wind and solar energy. As shown in the IIASA-led Global Energy Assessment, such savings could offset a considerable share of increased investment on a global scale.


Story Source:

The above story is based on materials provided by International Institute for Applied Systems Analysis. Note: Materials may be edited for content and length.


Journal Reference:

  1. DAVID McCOLLUM, YU NAGAI, KEYWAN RIAHI, GIACOMO MARANGONI, KATHERINE CALVIN, ROBERT PIETZCKER, JASPER VAN VLIET, BOB VAN DER ZWAAN. ENERGY INVESTMENTS UNDER CLIMATE POLICY: A COMPARISON OF GLOBAL MODELS. Climate Change Economics, 2013; 04 (04): 1340010 DOI: 10.1142/S2010007813400101

Cite This Page:

International Institute for Applied Systems Analysis. "Putting a price tag on the 2 degree Celsius climate target." ScienceDaily. ScienceDaily, 2 July 2014. <www.sciencedaily.com/releases/2014/07/140702111003.htm>.
International Institute for Applied Systems Analysis. (2014, July 2). Putting a price tag on the 2 degree Celsius climate target. ScienceDaily. Retrieved July 31, 2014 from www.sciencedaily.com/releases/2014/07/140702111003.htm
International Institute for Applied Systems Analysis. "Putting a price tag on the 2 degree Celsius climate target." ScienceDaily. www.sciencedaily.com/releases/2014/07/140702111003.htm (accessed July 31, 2014).

Share This




More Earth & Climate News

Thursday, July 31, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Big Waves In Arctic Ocean Threaten Polar Ice

Big Waves In Arctic Ocean Threaten Polar Ice

Newsy (July 30, 2014) Big waves in parts of the Arctic Ocean are unprecedented, mainly because they used to be covered in ice. Video provided by Newsy
Powered by NewsLook.com
Raw: Thousands Flocking to German Crop Circle

Raw: Thousands Flocking to German Crop Circle

AP (July 30, 2014) Thousands of people are trekking to a Bavarian farmer's field to check out a mysterious set of crop circles. (July 30) Video provided by AP
Powered by NewsLook.com
Amid Drought, UCLA Sees Only Water

Amid Drought, UCLA Sees Only Water

AP (July 30, 2014) A ruptured 93-year-old water main left the UCLA campus awash in 8 million gallons of water in the middle of California's worst drought in decades. (July 30) Video provided by AP
Powered by NewsLook.com
In Virginia, the Rise of a New Space Coast

In Virginia, the Rise of a New Space Coast

AP (July 30, 2014) Every summer, tourists make the pilgrimage to Chincoteague Island, Va. to see wild ponies cross the Assateague Channel. But, it's the rockets sending to supplies to the International Space Station that are making this a year-round destination. (July 30) Video provided by AP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

    Environment News

    Technology News



      Save/Print:
      Share:

      Free Subscriptions


      Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

      Get Social & Mobile


      Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

      Have Feedback?


      Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
      Mobile: iPhone Android Web
      Follow: Facebook Twitter Google+
      Subscribe: RSS Feeds Email Newsletters
      Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins