The 2021 World Energy Outlook Report, a yearly publication by the International Energy Agency (IEA), provides vital insights and analysis into global energy supply and demand trends. The latest report calls for governments to increase their climate action initiatives at the Conference of Parties (COP26) summit in Glasgow, UK. Previously, the IEA published its ‘Net Zero by 2050’ roadmap, outlining milestones for achieving Net Zero Emissions (NZE).
Renewable Energy Boost
According to the report, renewables such as solar, wind, hydropower and bioenergy must take a larger share in the rebounding energy investment following the coronavirus pandemic. The current pace of investment is insufficient to meet future energy needs, leading to uncertainties and potential volatility in the future. Although demand for renewables continues to rise, progress is too slow to cause a sustained decline in global emissions and reach net zero by 2050, a target that the IEA believes will limit the global temperature increase to 1.5 degrees Celsius.
Emission Reduction Actions
Achieving the necessary emission reductions might not be as challenging as it appears. Over 40% of the needed reductions could come from self-funding measures, including improving efficiency, reducing gas leakage and installing wind or solar technologies where they are the most competitive electricity generation sources.
Scenario Analysis
The IEA researched two potential scenarios: Stated Policies Scenario (STEPS) and Pledge for Net Zero. STEPS evaluates current government policies and measures, indicating that even with these, annual worldwide emissions would remain constant as developing countries expand their infrastructure. This scenario projects a 2.6 C temperature increase by 2100. Conversely, the pledge for Net Zero examines government pledges for net-zero emissions, which could double clean energy investment over the next decade, resulting in a global temperature increase of around 2.1 C by 2100.
Major Recommendations
The report offers several key suggestions, including clean electrification requiring a doubling of solar and wind deployment, a major expansion of low-emission generation, a focus on energy efficiency, reduction in methane emissions and an emphasis on the 2020s as a decade of massive clean energy deployment.
India-Specific Findings
The report specifies that India will surpass China as the most populous nation within the next decade, with a population exceeding 1.6 billion by 2050. It also projects India’s GDP growth to outpace China’s over the following three decades. However, India deals with significant challenges such as a staggering number of NPAs from over 50GW of Financially Stressed Coal Assets, causing strain in the banking system. On a positive note, India’s success in financing a rapid expansion of solar photovoltaics (pv) is recognized, and its fast progress in clean cooking access rates due to the Pradhan Mantri Ujjwala Yojana LPG distribution scheme.
Conclusion: Net Zero by 2050
The world faces the formidable task of transforming the energy sector within 30 years, against the backdrop of a rapidly growing global economy and population. Reaching Net Zero Emissions by 2050 necessitates significant interim steps through 2030, including engineering affordable and green energy from hydrogen and renewables, and ensuring their accessibility.
