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The production of commodities by energy-intensive industry is responsible for 1/3 of annual global greenhouse gas (GHG) emissions. The climate goal of the Paris Agreement, to hold the increase in the global average temperature to well below 2 °C above pre-industrial levels while pursuing efforts to limit the temperature increase to 1.5 °C, requires global GHG emissions reach net-zero and probably negative by 2055-2080. Given the average economic lifetime of industrial facilities is 20 years or more, this indicates all new investment must be net-zero emitting by 2035-2060 or be compensated by negative emissions to guarantee GHG-neutrality. We argue, based on a sample portfolio of emerging and near-commercial technologies for each sector (largely based on zero carbon electricity & heat sources, biomass and carbon capture, and catalogued in an accompanying database), that reducing energy-intensive industrial GHG emissions to Paris Agreement compatible levels may not only be technically possible, but can be achieved with sufficient prioritization and policy effort. We then review policy options to drive innovation and investment in these technologies. From this we synthesize a preliminary integrated strategy for a managed transition with minimum stranded assets, unemployment, and social trauma that recognizes the competitive and globally traded nature of commodity production. The strategy includes: an initial policy commitment followed by a national and sectoral stakeholder driven pathway process to build commitment and identify opportunities based on local zero carbon resources; penetration of near-commercial technologies through increasing valuation of GHG material intensity through GHG pricing or flexible regulations with protection for competitiveness and against carbon leakage; research and demand support for the output of pilot plants, including some combination of guaranteed above-market prices that decline with output and an increasing requirement for low carbon inputs in government procurement; and finally, key supporting institutions.
Energy intensive industries are one of the fields in which strong increases of energy efficiency and deep decarbonisation strategies are particularly challenging. Although European energy intensive industries have already achieved significant energy and greenhouse gas reductions in the past, much remains to be done to make a significant contribution to achieving European as well as national climate mitigation targets of greenhouse gas emission reductions by -80% or more (compared to the baseline of 1990). North Rhine-Westphalia (NRW) is a European hotspot for coping with this challenge, accommodating more than 10% of the energy intensive industries of the EU28. It is also the first German state to have adopted its own Climate Law, enacting state-wide CO2 emission reductions by 80% until 2050 compared to 1990. The state government initiated the project "Platform Climate Protection and Industry North-Rhine Westphalia" to identify and develop the necessary far-reaching low carbon innovation strategies for energy intensive industries. Heart of the project was a dialogue process, which involved a broad spectrum of stakeholders from steel, chemical, aluminium, cement, glass and paper producing industries. Besides enhancing and broadening the knowledge on high efficiency and low-carbon technologies within industries, the aim was to explore possible pathways and preconditions for the application of these technologies in energy intensive industries as well as to strengthen the motivation of companies for initiatives and investments in technologies with lower CO2 emissions. The results of the dialogue shall provide a basis for a possible low-carbon industry roadmap NRW and may also serve as an example for other industrialized regions in the EU and globally. The paper sketches the structured dialogue process with the stakeholders from companies as well as industrial associations and presents the learnings regarding the engagement of energy intensive industries into ambitious climate policies on a regional level. These include existing limitations as well as chances in the respective sectors on the state level, regarding their economic and technical structures as well as their innovation systems. The findings are based on more than a dozen stakeholder workshops with industry companies and more than 150 individual representatives of NRW's energy intensive industries as well as on background research in the initial phase of the project.
The final report of the research project "Power Sector Decarbonisation: Metastudy" contains the various reports prepared by Öko-Institut and Wuppertal Institute during the course of the SEFEP funded project. A key objective of the project was to make a contribution to the debates within the European Union (EU) and Member States on the EU's Energy Roadmap 2050 publication, which was released in December 2011. This objective was achieved by systematically analysing and comparing recently published scenarios on the European electricity sector commissioned by a range of different stakeholders (environmental NGOs, industry and government agencies).
On 26 January 2019, the Commission on Growth, Structural Change and Employment recommended that no more coal-fired power plants would be operated in Germany by 2038 at the latest. In this paper the Wuppertal Institute comments on the results of the Commission and makes recommendations for the current necessary steps for the climate and innovation policy in Europe, Germany and North Rhine-Westphalia.
The need for an "Energy Roadmap 2050" triggered a multitude of studies that were conducted between 2009 and 2011, which again contained a multitude of decarbonisation scenarios, which achieve the EU's long-term emission mitigation target of reducing greenhouse gas emissions by at least 80% until 2050 (relative to 1990 emissions). The variety of important analysis is difficult to compare and utilize for specific and timely policy decisions. Thus the Smart Energy for Europe Platform (SEFEP) has commissioned a comparative study of relevant energy scenario studies for Europe. The findings of this comparative study are summarized here briefly.
In October 2014, the European Council agreed on a target of improving overall energy efficiency by at least 27 per cent by 2030. According to the European Council's conclusions, this target should not be translated into nationally binding targets. Nevertheless individual Member States are free to set higher national objectives if desired. However, it is difficult to assess the degree of ambition of a national target because so far not much light has been shed upon the exact size of the untapped efficiency potentials.
This paper provides an in-depth analysis and comparison of existing studies on energy efficiency potentials in the European Union's (EU) Member States by 2030. It includes a structured overview of the results, information on the quality of the available data and suggestions for improvement.
The review shows that comprehensive studies on national energy efficiency potentials are rare and hardly comparable. The existing studies agree on the existence of significant potentials for energy efficiency. Their outcomes, however, vary significantly in terms of national levels. Assuming low policy intensity, energy savings between 10 and 28 per cent could be realised by 2030 compared to a baseline development, in the case of high policy intensity 7-44 per cent. Technical energy efficiency potentials in the different EU Member States are estimated at 14-52 per cent. On average, energy savings of 27 per cent by 2030 appear to be feasible with significant policy effort. We conclude that the deviation in Member States' energy efficiency potentials resulting from different studies represents an indication of the so far poor quality of underlying data. In order to allow for a concretisation of efficiency potential estimates, the comparability and detail of information sources should be improved.
New options are needed to reduce the impact of motor vehicles on climate change and declining fossil fuel resources. Cars which are fueled by hydrogen could be a sustainable method of transportation if suitable technologies can be devised to produce hydrogen in an environmentally benign manner along with the provision of the necessary fueling infrastructure. This paper assesses size, space, and cost requirements of bioreactors as a decentralized option to supply hydrogen powered cars with biohydrogen produced from algae or cyanobacteria on a theoretical basis. Decentralized supply of biohydrogen could help to reduce the problems that hydrogen cars face regarding market penetration. A feasibility study for decentralized biohydrogen production is conducted, taking the quantity of hydrogen which is needed to fuel current hydrogen cars into account. While this technology is, in theory, feasible, sizes, and costs of such reactors are currently too high for widespread adoption. Thus, more R&D is needed to close the gap and to approach marketability.
Due to significant success in technology development and cost reductions, the electricity system is now widely perceived as the part of the energy system to be first in decarbonisation. This means a double challenge for the system: Firstly, it will undergo significant change due to rapidly increasing shares of fluctuating renewable generation; Secondly, there will be an expansion of electricity into other fields of the energy system such as heat generation and transport.
Preventing the worst consequences of climate change would require that GHG emissions be reduced to levels near zero by the middle of the century. To respond to such a daunting challenge, we need to rethink and redesign the currently highly energy-dependent infrastructures of industrial societies and particularly the urban infrastructures to become low- or even zero-carbon cities. Sustainable urban infrastructures need technology. In this paper focused on Western European Cities, we discuss a wide set of technologies in the fields of building, energy and transport infrastructures that can significantly contribute to a reduction of energy and/or GHG emissions and are already available or are in the pipeline. Based on the review of a recent study for the city of Munich, we then present how a mix of these technologies could reduce CO2-emissions by up to 90% for the metropolis of 1.3 million inhabitants and that this strategy could be economically attractive despite a high initial investment.
All of the residential buildings of a city like Munich could be entirely redesigned for EUR 200 per inhabitant annually, which is about one third of an average annual natural gas bill.
The Russian natural gas industry is the world's largest producer and transporter of natural gas. This paper aims to characterize the methane emissions from Russian natural gas transmission operations, to explain projects to reduce these emissions, and to characterize the role of emissions reduction within the context of current GHG policy. It draws on the most recent independent measurements at all parts of the Russian long distance transport system made by the Wuppertal Institute in 2003 and combines these results with the findings from the US Natural Gas STAR Program on GHG mitigation options and economics.
With this background the paper concludes that the methane emissions from the Russian natural gas long distance network are approximately 0.6% of the natural gas delivered. Mitigating these emissions can create new revenue streams for the operator in the form of reduced costs, increased gas throughput and sales, and earned carbon credits. Specific emissions sources that have cost-effective mitigation solutions are also opportunities for outside investment for the Joint Implementation Kyoto Protocol flexibility mechanism or other carbon markets.
The European Union (EU) has established that the goal of achieving climate neutrality by 2050 as a key driver of innovation and growth for industry and the economy in the EU. In addition to offering great opportunities, this also poses considerable challenges for the European economy and, for the most part, for basic industries, which are particularly emission-intensive and face strong international competition.
An integrated climate and industry strategy is of central importance to protecting the climate, since the production of steel, cement, basic chemicals, glass, paper, and other materials in the EU and worldwide accounts for roughly one fifth of total greenhouse gas emissions. Even in a greenhouse gas-neutral future, we will not be able to fully eliminate our need for these materials. At the same time, it is particularly challenging to produce these materials without creating emissions given the state of technology and the necessary infrastructures. This applies above all to the question of how large amounts of green energy, including electricity and hydrogen, can be produced at competitive prices. Analyses show that despite the considerable costs involved in process changeover, the costs of transforming the raw materials industry are acceptable to society as a whole, given that the additional costs usually only increase the price of the end products by a few percentage points. However, in the case of crude steel or cement, the price would increase by between one third and 100 per cent. Since almost all raw materials manufacturers face strong global market competition, in most cases they are not able to bankroll the investments in climate-neutral production and the required energy infrastructure without outside support.
This paper outlines an integrated climate industrial policy package that allows the EU to utilise its existing technological leadership in many of these industries to build a greenhouse gas-neutral raw materials industry.
Target 2020 : policies and measures to reduce greenhouse gas emissions in the EU ; final report
(2005)
Under the framework of the UN framework convention on climate change (UNFCCC) and its Kyoto Protocol the targets and strategies for the second and third commitment period ("post-2012") have to be discussed and set in the near future. Regarding the substantial emission reductions that have to be shouldered by the industrialized nations over the next two decades it is evident that all available potentials to mitigate greenhouse gas (GHG) emissions have to be harnessed and that energy efficiency has to play a key role.
To substantiate this we developed a comprehensive scenario analysis of the EU 25s energy system and other greenhouse gas emissions until 2020. Our analysis shows which key potentials to mitigate greenhouse gas emissions are available, by which policies and measures they are attainable
and which will be benefits of greenhouse gas mitigation measures.
By this analysis we show the mayor role of energy efficiency in all sectors and all member states. We demonstrate that a reduction of EU 25 greenhouse gas emissions by more than 30 % by 2020 is feasible, reasonable and - to a large extent - cost effective. We also develop a comprehensive policy package necessary to achieve ambitious Post-Kyoto targets.
The scenario analysis results in a clear identification of the needed strategies, policies and measures and especially the relevance of energy efficiency to achieve the necessary ambitious greenhouse gas reduction targets. It also clearly shows the costs and the benefits of such a policy compared to a business as usual case.
Germany's current efforts to decarbonize its electricity system are analysed. As nuclear power and fossil power plants equipped with carbon capture and storage were ruled out in 2011, renewable electricity generation (RES) together with electricity savings are the primary focus for achieving decarbonization. Germany aims to have RES account for at least 80% of its electricity by 2050. Achieving renewable generation needs strong political support and regulatory provisions for its market integration. Four main technical and regulatory challenges are the maintenance of a steady and efficient expansion of RES, the provision of balancing capacities, the realization of the targeted electricity savings, and the smart adaptation of the transport and distribution grid. An overview of the existing and planned regulatory provisions for decarbonization are described, and some gaps identified, particularly with regard to the overall management of the process, the inclusion of electricity savings and the interference of Germany's decarbonization strategies with neighbouring countries. Policies that both accelerate grid expansion and direct RES expansion should immediately be put in place and can be supported by a targeted mobilization of balancing capacities. Electricity savings are a significant and cost-efficient strategy for low-carbon electricity. Policy relevance: Germany is actively converting its national electricity system towards a fully renewable one. As renewable electricity has reached about a quarter of total consumption, a number of technical and regulatory challenges arise. Current discussions and plans are described for the four main challenges: maintaining and optimizing high investment rates into RES generation technologies, providing balancing capacities, reducing demand, and adapting the grid to the changing needs. Policy recommendations for these four tasks highlight the need to intensify electricity demand reduction and also consider the potential interactions between the German electricity system and its neighbouring countries.
The need for deep decarbonisation in the energy intensive basic materials industry is increasingly recognised. In light of the vast future potential for renewable electricity the implications of electrifying the production of basic materials in the European Union is explored in a what-if thought-experiment. Production of steel, cement, glass, lime, petrochemicals, chlorine and ammonia required 125 TW-hours of electricity and 851 TW-hours of fossil fuels for energetic purposes and 671 TW-hours of fossil fuels as feedstock in 2010. The resulting carbon dioxide emissions were equivalent to 9% of total greenhouse gas emissions in EU28. A complete shift of the energy demand as well as the resource base of feedstocks to electricity would result in an electricity demand of 1713 TW-hours about 1200 TW-hours of which would be for producing hydrogen and hydrocarbons for feedstock and energy purposes. With increased material efficiency and some share of bio-based materials and biofuels the electricity demand can be much lower. Our analysis suggest that electrification of basic materials production is technically possible but could have major implications on how the industry and the electric systems interact. It also entails substantial changes in relative prices for electricity and hydrocarbon fuels.
Although the anticipated "end of cheap oil" has boosted the interest in energy efficiency as a cornerstone of energy and climate strategies, it is usually taken into account on the basis of rather narrowly defined cost-benefit considerations. As a consequence, substantial ancillary benefits are usually barely considered.
In a recent study for the European Parliament (EP), the authors assessed two enhanced climate strategies compared to a more conventional strategy. One enhanced climate policy scenario relies, in particular, on raising the annual pace of energy efficiency improvement. The other aims at a radical boost of the market share of renewable energy forms, which, however, presupposes an equally radical improvement of energy efficiency.
The present article presents the scenario results and places them in the context of risk characterisation of the considered climate policy scenarios. Risks of international turmoil and energy price hikes could be reduced if dependency rates for fossil fuel imports went down. A more ambitious climate policy can also strengthen the EU position in post-Kyoto global climate agreements and a moderated need for emission trading can, for example, reduce conflicting pressures on clean technology transfer.
On the other hand, the implementation of the efficiency strategy will entail increased domestic risks because it will involve a re-prioritisation of resource allocation and will thus affect the current distribution of wealth in both the energy sector and some other closely related sectors.
The article outlines the main drivers behind the ambitious energy efficiency scenario and it attaches tentative price tags to the ancillary effects, with special emphasis on the above sketched swapping of risks. It will, therefore, strongly argue for a more holistic view, which underscores the need for political action and the benefits of such proactive policies in favour of energy efficiency.