After the 2008-09 financial crisis, spending on clean energy technology and environmental management measures accounted for around 16% of total stimulus measures (as discussed in Chapter 1). An additional $10 billion would be spent each year to improve waste management and material efficiency. “The IEA again misses the mark where it matters the most, completely ignoring the link between sustainable recovery and staying within 1.5°C of warming. Investment in energy is also needed to develop more sustainable systems, speed up clean energy transitions and reduce emissions in pursuit of the goals of the Paris Agreement and the UN Sustainable Development Agenda. However, if LDAR programmes stop, new leaks that could occur would not be found and fugitive emissions would rise again. Strengthen international finance institutions sustainable development lending criteria. Unlike many of the other emission abatement opportunities, the spending on methane emissions reductions must be sustained each year to maintain the emissions reduction. Of the 27 million job-years created worldwide by the sustainable recovery plan, 35% are in energy efficiency projects in the buildings and industry sectors, and just over 25% are in the electricity sector. Many are boosted by remittances and direct aid from advanced economies that could be at risk because of the economic slowdown. As discussed in Chapter 2, phasing out inefficient fossil fuel subsidies in nearly all regions would reduce CO2 emissions by around 700 million tonnes (Mt) by 2030. The world is not on track to meet the energy-related components of the Sustainable Development Goals (SDGs). Provide a long-term vision on sustainability and resilience to guide investment decisions. Recovery plans also need to take into account countries’ individual macroeconomic characteristics such as the size and robustness of supply chains, the degree of economic diversification and the extent of labour market flexibility. However it is important that these projects are compatible with long-term energy security and environmental objectives. Download the updated IKEA Sustainability Strategy People & Planet Positive 2030 Numbers for 2018, you will find them on ingka.com An approach of this kind would also help to avoid the creation of asset bubbles. Provide more long-term contracts and regulatory investment guarantees. This should help to boost the development of new low-emission and resilient infrastructure projects, attract private investors, expand markets, and support governments in reforming climate and investment policies (OECD/The World Bank/UN Environment, 2018). Cross-border collaboration could also be useful in helping to re-establish some international supply chains disrupted by the Covid-19 crisis. The increase in GDP growth is less in advanced economies than in the rest of the world. Oil 2020, the International Energy Agency’s annual outlook for global oil markets, examines the key issues in demand, supply, refining and trade to 2025.. By using analysis of policies, energy data, and technology trends, this report provides a comprehensive view of energy efficiency trends worldwide. Provide insurance policies and guarantees to reduce the cost of capital. Developing a more modern and resilient energy system requires investment in longer term infrastructure and energy efficiency projects. The coronavirus pandemic may have slashed global carbon emissions but a historic slump in global energy investment this year could threaten climate goals in the longer term, according to a new report. In total, the plan would therefore directly produce around 27 million job-years worldwide.4 There would also be more than 0.5 million permanent jobs associated with operating and maintaining the assets constructed by the sustainable recovery plan. This amounts to around 0.7% of global gross domestic product (GDP) in each year. Strengthen and widen energy efficiency goals and promote the use of zero-carbon fuels in car manufacturing industries. In the Sustainable Development Scenario, strong policy support and international co-operation are an integral part of national and international recovery plans, and this enables a ramping up of progress on expanding access programmes to achieve universal access to electricity and clean cooking by 2030, despite the near-term slowdown caused by the health crisis and economic downturn. IEA Bioenergy Annual Report 2013 This latest report includes a special feature article ‘Integration of Thermal Energy Recovery into Solid Waste Management’ prepared by Task 36. There would be deep retrofits of a large number of existing buildings, and a number of new highly efficient buildings would be built. The sustainable recovery plan would also lead to reductions in the levels of the three main air pollutants (sulfur oxides [SOX], particulate matter [PM2.5], and nitrogen oxides [NOX]) compared with what would otherwise happen. Household air pollution causes around 2.5 million premature deaths every year; progress on clean cooking would substantially reduce this. Where central banks are expanding the supply of money through the purchase of assets, the introduction of appropriate eligibility criteria (for example, a preference to purchase corporate bonds that meet certain conditions), would help to ensure that the finance is directed towards sectors and technologies that are aligned with the goals of the sustainable recovery plan (Matikainen, Campiglio and Zenghelis, 2017). Many energy measures – in particular energy efficiency – would deliver savings for consumers and so increase household disposable income for other purposes, thereby supporting employment in other economic activities. The investment needed to achieve universal energy access amounts to some $40 billion per year between 2021 and 2030, the lion’s share of it for electricity access. Domestic policy frameworks and market designs play a key role in attracting private finance. FY191 is the second IKEA sustainability report since the relaunch of the sustainability strategy, People & Planet Positive, in 2018. IEA Bioenergy to launch a new report on sustainability governance approaches for bioenergy and biomaterials supply chains. International co-operation to mobilise concessional loans and provide debt restructuring or debt relief therefore will be critical (UN DESA, 2020).3. International finance institutions (IFIs), multilateral development banks (MDBs), and bilateral donors (e.g. Global energy investment totalled more than US$1.8 trillion in 2018, a level similar to 2017. Innovative and more decentralised energy systems, making full use of local agricultural and energy resources (including modern bioenergy, such as biogas or bio-ethanol and solar PV), have an important part to play in improving access to electricity and progress on clean cooking. This is partly because the amount of spending in advanced economies is less, but also because many of the indirect manufacturing jobs created are located outside of advanced economies. The sustainable recovery plan would kick-start the reductions needed to achieve the goals of the Paris Agreement. There is no trade-off between achieving climate objectives and delivering on energy access and air pollution goals. Around $45 billion would be spent each year to accelerate the development and production of new projects and industrial capacity for clean energy technologies such as hydrogen, batteries, carbon capture, utilisation and storage (CCUS) and small modular nuclear reactors (SMRs). New Publication – Workshop report: Biofuels Sustainability – Focus on Lifecycle Analysis (LCA) Nov 2019. The Sustainable Development Scenario explicitly supports these broader development efforts (in contrast to most other decarbonisation scenarios), in particular through its energy access and cleaner air dimensions. A number of projects that were under construction or had reached the advanced stages of planning were delayed or postponed as a result of the Covid-19 pandemic. You can unsubscribe at any time by clicking the link at the bottom of any IEA newsletter. The economic impact of Covid-19 is likely to be felt most profoundly by the poor and economically vulnerable segments of society. For low-income countries, it is critical to accelerate efforts to provide, The significant decline in fossil fuel prices presents an opportunity to further the process of reforming inefficient. It is estimated that CO2 emissions in 2020 will be around 2.6 Gt lower than they otherwise would have been as a result of the slowdown in activity and the contraction in the global economy related to Covid-19. Publications. the G20 countries) will have an important role to play in underpinning the sustainable recovery plan measures in some countries. Concessional loans have more generous terms than market loans, for example through lower interest rates or longer grace periods than those available on the market. To date, there are few signs that the fall in oil and gas prices is prompting an acceleration in efforts to phase out subsidies. For information on the definitions for the jobs analysis conducted for this report and its methodology, please refer to Annex A of the PDF. The SDS requires around an increase in overall investment compared to STEPS of around 25% over the period to 2050. The public to private split is broadly based on historical investment ratios between state-owned enterprises and private firms across the various measures, with differing values for advanced economies and the rest of the world, but with allowance for the higher level of government support that may be needed in some sectors (such as transport). In terms of annual changes in GDP, this means that global economic growth each year to 2023 would be 1.1% higher on average than it would have been otherwise. Public policies have an essential part to play in facilitating the deployment of private capital through regulations, market frameworks and tax reforms. There is a significant shift in capital spending away from fossil fuels to renewables and other low-carbon sources as well as to electricity. The plan envisages expenditure across six sectors: Buildings measures can quickly create a large number of new local jobs, often with low or negative CO2 abatement costs. Based on existing and announced policies – as described in the IEA Stated Policies Scenario (STEPS) – the world is not on course to achieve the outcomes of the UN SDGs most closely related to energy: to achieve universal access to energy (SDG 7), to reduce the severe health impacts of air pollution (part of SDG 3) and to tackle climate change (SDG 13). Develop a strong pipeline of new projects. Sustainability reports These reports give detailed information about the IKEA Group’s work with social and environmental responsibility and shows how far we have come towards achieving our goals. Investment in new industries, such battery manufacturing and hydrogen production, could also provide an important runway for future job growth. The emissions reductions from the three years of the sustainable recovery plan would therefore provide a much higher level of CO2 emissions reductions than was caused by the Covid-19 crisis, but achieve this through structural changes in the way that society produces and consumes energy rather than by curtailing economic activity. For example, former manufacturing workers could work on assembling highly efficient commercial durable goods, and former construction workers could undertake building retrofits. It Around $150 billion would be spent each year on purchases of more efficient cars and electric vehicles (including electric cars, two/three wheelers, buses and light commercial vehicles).1 Nearly $90 billion would be spent each year on long-distance transport to boost high speed rail and to improve the efficiency of trucks, airplanes and ships. They have provided emergency financial assistance and debt relief to a number of low-income countries during the unfolding of the pandemic. The Sustainable Development Scenario does not rely on net negative emissions, but if the requisite technologies became available at scale, warming could be further limited. A much smaller number of these jobs would be created, but they would last for a much longer period. Unless gender occupational segregation is addressed, the jobs created by sustainable recovery plans are likely to be taken mainly by men. Incentives in the recovery plan would stimulate the purchase of more than 350 million high efficiency appliances each year. One of the five key policy pillars of the sustainable recovery plan is the mobilisation of private financing to complement the direct government expenditure. The Annual Report also includes a report from the Executive Committee and a detailed progress report on each of the Tasks. This scenario requires $40 billion of annual investment between 2021 and 2030 to reach universal access, making full use of decentralised solutions. Accessing private financing could be a challenge for some countries considering sustainable recovery plans. However, as frequently highlighted in the WEO, there are reasons to limit reliance on early-stage technologies for which future rates of deployment are highly uncertain: that is why the SDS emphasises the importance of early action on reducing emissions. less than 1.5°C More than 2.6 billion people also relied on traditional uses of biomass, coal or kerosene as their primary cooking fuel in 2018. The cost of sustaining these jobs is not included in the sustainable recovery plan: they would be funded from the operating revenues of firms using the assets developed under the plan. Restarting and supporting these projects – while ensuring the health of workers – could provide an immediate boost in employment and economic output. Investment in networks, mini-grids and residential standalone systems under the sustainable recovery plan mean that around 270 million people gain access to electricity over the period to 2023, while investment in modern and clean cooking solutions move around 420 million people away from the traditional use of biomass, significantly reducing premature deaths from air pollution. Assuming that prices remain unchanged, there would be important reductions in consumer bills by the end of the sustainable recovery plan compared with a case without this spending as a result of fuel switching and energy efficiency measures. The transport sector was severely affected by the Covid-19 lockdowns across most countries. Annual reports The Annual Report highlights the activities and accomplishments of the IEA PVPS Technology Collaboration Program. Operations, maintenance and management job creation. There would be significant co-ordination gains if countries align their actions. Oil consumption in transport would be around 2 million barrels per day (mb/d) (100 Mtoe) less. A level of net negative emissions significantly smaller than that used in most scenarios assessed by the IPCC would provide the Sustainable Development Scenario with a 50% probability of limiting the rise in global temperatures to 1.5°C. Targeted engagement with the private sector and civil society can help improve transparency. Required investment was higher in WEO-2019, at $45 billion per year. Turning this around and strengthening a process of reform would provide an additional boost to emissions reductions from the sustainable recovery plan. Many of the jobs created by the sustainable recovery plan would match the skills of workers who lost jobs during the crisis, or would require little retraining. 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