World Energy Outlook Special Report: Coal in Net Zero Transitions
Overview
The International Energy Agency (IEA) examines the full spectrum of energy issues, including oil, gas, and coal supply and demand, renewable energy technologies, electricity markets, energy efficiency, access to energy, and more. This special report focuses on the role of coal in achieving net-zero emissions.
Key Findings
- Global Coal Consumption: Over 95% of today's global coal consumption occurs in countries that have pledged to achieve net-zero emissions.
- Plateau in Coal Use: Despite pledges, global coal use and emissions have essentially plateaued at a high level, with no definitive signs of imminent reduction. Some countries have even seen modest upticks due to the current global energy crisis.
- Renewable Energy Growth: While renewable energy options like solar and wind are cost-effective and have seen impressive growth, they have not yet led to a decline in coal’s global emissions.
- Policy Effort Needed: Reducing coal emissions while maintaining energy security requires dedicated and determined policy efforts by governments, addressing market and contractual designs, accelerating innovation in industrial sectors, and building clean energy assets.
- Social and Employment Considerations: Carefully designed policies and government coordination with industry and labor organizations are crucial to help workers and communities adjust to changes in the coal industry.
Challenges
- Market Design: Coal plants are often shielded from competition due to market and contractual designs.
- Industrial Sector: Accelerated innovation is necessary to reduce coal emissions in key areas like steel and cement.
- Developing Economies: Rapidly growing electricity demand, incumbent coal usage, and rising industrial coal use pose significant challenges.
- Geopolitical Risks: If coal transitions are managed poorly, there is a risk of fractures between advanced and developing economies, leading to geopolitical rifts.
Recommendations
- Diverse Approaches: No single approach exists; various strategies tailored to national circumstances are required.
- Carbon Capture Utilization and Storage (CCUS): Potential for CCUS should be explored.
- Financing: Improving financing for phasing down coal and addressing social and employment aspects of the transition.
- International Collaboration: Enhancing Just Energy Transition Partnerships with South Africa, Indonesia, and other emerging economies.
Conclusion
The report emphasizes the need for pragmatic, real-world guidance to achieve reductions in coal emissions without harming economies or energy security. It highlights the importance of social and employment considerations and the need for diverse, tailored approaches to achieve net-zero emissions.
This summary provides a comprehensive overview of the key points and findings from the World Energy Outlook Special Report on coal in net-zero transitions.