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- ItemEnergy system developments and investments in the decisive decade for the Paris Agreement goals(Bristol : IOP Publ., 2021-6-29) Bertram, Christoph; Riahi, Keywan; Hilaire, Jérôme; Bosetti, Valentina; Drouet, Laurent; Fricko, Oliver; Malik, Aman; Pupo Nogueira, Larissa; van der Zwaan, Bob; van Ruijven, Bas; van Vuuren, Detlef; Weitzel, Matthias; Dalla Longa, Francesco; de Boer, Harmen-Sytze; Emmerling, Johannes; Fosse, Florian; Fragkiadakis, Kostas; Harmsen, Mathijs; Keramidas, Kimon; Kishimoto, Paul Natsuo; Kriegler, Elmar; Krey, Volker; Paroussos, Leonidas; Saygin, Deger; Vrontisi, Zoi; Luderer, GunnarThe Paris Agreement does not only stipulate to limit the global average temperature increase to well below 2 °C, it also calls for 'making finance flows consistent with a pathway towards low greenhouse gas emissions'. Consequently, there is an urgent need to understand the implications of climate targets for energy systems and quantify the associated investment requirements in the coming decade. A meaningful analysis must however consider the near-term mitigation requirements to avoid the overshoot of a temperature goal. It must also include the recently observed fast technological progress in key mitigation options. Here, we use a new and unique scenario ensemble that limit peak warming by construction and that stems from seven up-to-date integrated assessment models. This allows us to study the near-term implications of different limits to peak temperature increase under a consistent and up-to-date set of assumptions. We find that ambitious immediate action allows for limiting median warming outcomes to well below 2 °C in all models. By contrast, current nationally determined contributions for 2030 would add around 0.2 °C of peak warming, leading to an unavoidable transgression of 1.5 °C in all models, and 2 °C in some. In contrast to the incremental changes as foreseen by current plans, ambitious peak warming targets require decisive emission cuts until 2030, with the most substantial contribution to decarbonization coming from the power sector. Therefore, investments into low-carbon power generation need to increase beyond current levels to meet the Paris goals, especially for solar and wind technologies and related system enhancements for electricity transmission, distribution and storage. Estimates on absolute investment levels, up-scaling of other low-carbon power generation technologies and investment shares in less ambitious scenarios vary considerably across models. In scenarios limiting peak warming to below 2 °C, while coal is phased out quickly, oil and gas are still being used significantly until 2030, albeit at lower than current levels. This requires continued investments into existing oil and gas infrastructure, but investments into new fields in such scenarios might not be needed. The results show that credible and effective policy action is essential for ensuring efficient allocation of investments aligned with medium-term climate targets.
- ItemManaging power demand from air conditioning benefits solar pv in India scenarios for 2040(Basel : MDPI, 2020) Ershad, Ahmad Murtaza; Pietzcker, Robert; Ueckerdt, Falko; Luderer, GunnarAn Indian electricity system with very high shares of solar photovoltaics seems to be a plausible future given the ever-falling solar photovoltaic (PV) costs, recent Indian auction prices, and governmental support schemes. However, the variability of solar PV electricity, i.e., the seasonal, daily, and other weather-induced variations, could create an economic barrier. In this paper, we analyzed a strategy to overcome this barrier with demand-side management (DSM) by lending flexibility to the rapidly increasing electricity demand for air conditioning through either precooling or chilled water storage. With an open-source power sector model, we estimated the endogenous investments into and the hourly dispatching of these demand-side options for a broad range of potential PV shares in the Indian power system in 2040. We found that both options reduce the challenges of variability by shifting electricity demand from the evening peak to midday, thereby reducing the temporal mismatch of demand and solar PV supply profiles. This increases the economic value of solar PV, especially at shares above 40%, the level at which the economic value roughly doubles through demand flexibility. Consequently, DSM increases the competitive and cost-optimal solar PV generation share from 33-45% (without DSM) to ∼45-60% (with DSM). These insights are transferable to most countries with high solar irradiation in warm climate zones, which amounts to a major share of future electricity demand. This suggests that technologies, which give flexibility to air conditioning demand, can be an important contribution toward enabling a solar-centered global electricity supply. © 2020 by the authors.
- ItemCommon but differentiated leadership: strategies and challenges for carbon neutrality by 2050 across industrialized economies(Bristol : IOP Publ., 2020) Schreyer, Felix; Luderer, Gunnar; Rodrigues, Renato; Pietzcker, Robert C.; Baumstark, Lavinia; Sugiyama, Masahiro; Brecha, Robert J.; Ueckerdt, FalkoGiven their historic emissions and economic capability, we analyze a leadership role for representative industrialized regions (EU, US, Japan, and Australia) in the global climate mitigation effort. Using the global integrated assessment model REMIND, we systematically compare region-specific mitigation strategies and challenges of reaching domestic net-zero carbon emissions in 2050. Embarking from different emission profiles and trends, we find that all of the regions have technological options and mitigation strategies to reach carbon neutrality by 2050. Regional characteristics are mostly related to different land availability, population density and population trends: While Japan is resource limited with respect to onshore wind and solar power and has constrained options for carbon dioxide removal (CDR), their declining population significantly decreases future energy demand. In contrast, Australia and the US benefit from abundant renewable resources, but face challenges to curb industry and transport emissions given increasing populations and high per-capita energy use. In the EU, lack of social acceptance or EU-wide cooperation might endanger the ongoing transition to a renewable-based power system. CDR technologies are necessary for all regions, as residual emissions cannot be fully avoided by 2050. For Australia and the US, in particular, CDR could reduce the required transition pace, depth and costs. At the same time, this creates the risk of a carbon lock-in, if decarbonization ambition is scaled down in anticipation of CDR technologies that fail to deliver. Our results suggest that industrialized economies can benefit from cooperation based on common themes and complementary strengths. This may include trade of electricity-based fuels and materials as well as the exchange of regional experience on technology scale-up and policy implementation.
- ItemReducing stranded assets through early action in the Indian power sector(Bristol : IOP Publ., 2020) Malik, Aman; Bertram, Christoph; Despres, Jacques; Emmerling, Johannes; Fujimori, Shinichiro; Garg, Amit; Kriegler, Elmar; Luderer, Gunnar; Mathur, Ritu; Roelfsema, Mark; Shekhar, Swapnil; Vishwanathan, Saritha; Vrontisi, ZoiCost-effective achievement of the Paris Agreement's long-term goals requires the unanimous phase-out of coal power generation by mid-century. However, continued investments in coal power plants will make this transition difficult. India is one of the major countries with significant under construction and planned increase in coal power capacity. To ascertain the likelihood and consequences of the continued expansion of coal power for India's future mitigation options, we use harmonised scenario results from national and global models along with projections from various government reports. Both these approaches estimate that coal capacity is expected to increase until 2030, along with rapid developments in wind and solar power. However, coal capacity stranding of the order of 133–237 GW needs to occur after 2030 if India were to pursue an ambitious climate policy in line with a well-below 2 °C target. Earlier policy strengthening starting after 2020 can reduce stranded assets (14–159 GW) but brings with it political economy and renewable expansion challenges. We conclude that a policy limiting coal plants to those under construction combined with higher solar targets could be politically feasible, prevent significant stranded capacity, and allow higher mitigation ambition in the future.
- ItemAlternative carbon price trajectories can avoid excessive carbon removal([London] : Nature Publishing Group UK, 2021) Strefler, Jessica; Kriegler, Elmar; Bauer, Nico; Luderer, Gunnar; Pietzcker, Robert C.; Giannousakis, Anastasis; Edenhofer, OttmarThe large majority of climate change mitigation scenarios that hold warming below 2 °C show high deployment of carbon dioxide removal (CDR), resulting in a peak-and-decline behavior in global temperature. This is driven by the assumption of an exponentially increasing carbon price trajectory which is perceived to be economically optimal for meeting a carbon budget. However, this optimality relies on the assumption that a finite carbon budget associated with a temperature target is filled up steadily over time. The availability of net carbon removals invalidates this assumption and therefore a different carbon price trajectory should be chosen. We show how the optimal carbon price path for remaining well below 2 °C limits CDR demand and analyze requirements for constructing alternatives, which may be easier to implement in reality. We show that warming can be held at well below 2 °C at much lower long-term economic effort and lower CDR deployment and therefore lower risks if carbon prices are high enough in the beginning to ensure target compliance, but increase at a lower rate after carbon neutrality has been reached.
- ItemThe CO2 reduction potential for the European industry via direct electrification of heat supply (power-to-heat)(Bristol : IOP Publ., 2020) Madeddu, Silvia; Ueckerdt, Falko; Pehl, Michaja; Peterseim, Juergen; Lord, Michael; Kumar, Karthik Ajith; Krüger, Christoph; Luderer, GunnarThe decarbonisation of industry is a bottleneck for the EU's 2050 target of climate neutrality. Replacing fossil fuels with low-carbon electricity is at the core of this challenge; however, the aggregate electrification potential and resulting system-wide CO2 reductions for diverse industrial processes are unknown. Here, we present the results from a comprehensive bottom-up analysis of the energy use in 11 industrial sectors (accounting for 92% of Europe's industry CO2 emissions), and estimate the technological potential for industry electrification in three stages. Seventy-eight per cent of the energy demand is electrifiable with technologies that are already established, while 99% electrification can be achieved with the addition of technologies currently under development. Such a deep electrification reduces CO2 emissions already based on the carbon intensity of today's electricity (∼300 gCO2 kWhel−1). With an increasing decarbonisation of the power sector IEA: 12 gCO2 kWhel−1 in 2050), electrification could cut CO2 emissions by 78%, and almost entirely abate the energy-related CO2 emissions, reducing the industry bottleneck to only residual process emissions. Despite its decarbonisation potential, the extent to which direct electrification will be deployed in industry remains uncertain and depends on the relative cost of electric technologies compared to other low-carbon options.
- ItemREMIND2.1: transformation and innovation dynamics of the energy-economic system within climate and sustainability limits(Katlenburg-Lindau : Copernicus, 2021) Baumstark, Lavinia; Bauer, Nico; Benke, Falk; Bertram, Christoph; Bi, Stephen; Gong, Chen Chris; Dietrich, Jan Philipp; Dirnaichner, Alois; Giannousakis, Anastasis; Hilaire, Jerome; Klein, David; Koch, Johannes; Leimbach, Marian; Levesque, Antoine; Madeddu, Silvia; Malik, Aman; Merfort, Anne; Merfort, Leon; Odenweller, Adrian; Pehl, Michaja; Pietzcker, Robert C.; Piontek, Franziska; Rauner, Sebastian; Rodrigues, Renato; Rottoli, Marianna; Schreyer, Felix; Schultes, Anselm; Soergel, Bjoern; Soergel, Dominika; Strefler, Jessica; Ueckerdt, Falko; Kriegler, Elmar; Luderer, GunnarThis paper presents the new and now open-source version 2.1 of the REgional Model of INvestments and Development (REMIND). REMIND, as an integrated assessment model (IAM), provides an integrated view of the global energy–economy–emissions system and explores self-consistent transformation pathways. It describes a broad range of possible futures and their relation to technical and socio-economic developments as well as policy choices. REMIND is a multiregional model incorporating the economy and a detailed representation of the energy sector implemented in the General Algebraic Modeling System (GAMS). It uses non-linear optimization to derive welfare-optimal regional transformation pathways of the energy-economic system subject to climate and sustainability constraints for the time horizon from 2005 to 2100. The resulting solution corresponds to the decentralized market outcome under the assumptions of perfect foresight of agents and internalization of external effects. REMIND enables the analyses of technology options and policy approaches for climate change mitigation with particular strength in representing the scale-up of new technologies, including renewables and their integration in power markets. The REMIND code is organized into modules that gather code relevant for specific topics. Interaction between different modules is made explicit via clearly defined sets of input and output variables. Each module can be represented by different realizations, enabling flexible configuration and extension. The spatial resolution of REMIND is flexible and depends on the resolution of the input data. Thus, the framework can be used for a variety of applications in a customized form, balancing requirements for detail and overall runtime and complexity.
- ItemTaking stock of national climate policies to evaluate implementation of the Paris Agreement([London] : Nature Publishing Group UK, 2020) Roelfsema, Mark; van Soest, Heleen L.; Harmsen, Mathijs; van Vuuren, Detlef P.; Bertram, Christoph; den Elzen, Michel; Höhne, Niklas; Iacobuta, Gabriela; Krey, Volker; Kriegler, Elmar; Luderer, Gunnar; Riahi, Keywan; Ueckerdt, Falko; Després, Jacques; Drouet, Laurent; Emmerling, Johannes; Frank, Stefan; Fricko, Oliver; Gidden, Matthew; Humpenöder, Florian; Huppmann, Daniel; Fujimori, Shinichiro; Fragkiadakis, Kostas; Gi, Keii; Keramidas, Kimon; Köberle, Alexandre C.; Aleluia Reis, Lara; Rochedo, Pedro; Schaeffer, Roberto; Oshiro, Ken; Vrontisi, Zoi; Chen, Wenying; Iyer, Gokul C.; Edmonds, Jae; Kannavou, Maria; Jiang, Kejun; Mathur, Ritu; Safonov, George; Vishwanathan, Saritha SudharmmaMany countries have implemented national climate policies to accomplish pledged Nationally Determined Contributions and to contribute to the temperature objectives of the Paris Agreement on climate change. In 2023, the global stocktake will assess the combined effort of countries. Here, based on a public policy database and a multi-model scenario analysis, we show that implementation of current policies leaves a median emission gap of 22.4 to 28.2 GtCO2eq by 2030 with the optimal pathways to implement the well below 2 °C and 1.5 °C Paris goals. If Nationally Determined Contributions would be fully implemented, this gap would be reduced by a third. Interestingly, the countries evaluated were found to not achieve their pledged contributions with implemented policies (implementation gap), or to have an ambition gap with optimal pathways towards well below 2 °C. This shows that all countries would need to accelerate the implementation of policies for renewable technologies, while efficiency improvements are especially important in emerging countries and fossil-fuel-dependent countries.
- ItemImpact of methane and black carbon mitigation on forcing and temperature: a multi-model scenario analysis(Dordrecht [u.a.] : Springer Science + Business Media B.V, 2020) Smith, Steven J.; Chateau, Jean; Dorheim, Kalyn; Drouet, Laurent; Durand-Lasserve, Olivier; Fricko, Oliver; Fujimori, Shinichiro; Hanaoka, Tatsuya; Harmsen, Mathijs; Hilaire, Jérôme; Keramidas, Kimon; Klimont, Zbigniew; Luderer, Gunnar; Moura, Maria Cecilia P.; Riahi, Keywan; Rogelj, Joeri; Sano, Fuminori; van Vuuren, Detlef P.; Wada, KenichiThe relatively short atmospheric lifetimes of methane (CH4) and black carbon (BC) have focused attention on the potential for reducing anthropogenic climate change by reducing Short-Lived Climate Forcer (SLCF) emissions. This paper examines radiative forcing and global mean temperature results from the Energy Modeling Forum (EMF)-30 multi-model suite of scenarios addressing CH4 and BC mitigation, the two major short-lived climate forcers. Central estimates of temperature reductions in 2040 from an idealized scenario focused on reductions in methane and black carbon emissions ranged from 0.18–0.26 °C across the nine participating models. Reductions in methane emissions drive 60% or more of these temperature reductions by 2040, although the methane impact also depends on auxiliary reductions that depend on the economic structure of the model. Climate model parameter uncertainty has a large impact on results, with SLCF reductions resulting in as much as 0.3–0.7 °C by 2040. We find that the substantial overlap between a SLCF-focused policy and a stringent and comprehensive climate policy that reduces greenhouse gas emissions means that additional SLCF emission reductions result in, at most, a small additional benefit of ~ 0.1 °C in the 2030–2040 time frame. © 2020, Battelle Memorial Institute.
- ItemBio-energy and CO2 emission reductions: an integrated land-use and energy sector perspective(Dordrecht [u.a.] : Springer Science + Business Media B.V, 2020) Bauer, Nico; Klein, David; Humpenöder, Florian; Kriegler, Elmar; Luderer, Gunnar; Popp, Alexander; Strefler, JessicaBiomass feedstocks can be used to substitute fossil fuels and effectively remove carbon from the atmosphere to offset residual CO2 emissions from fossil fuel combustion and other sectors. Both features make biomass valuable for climate change mitigation; therefore, CO2 emission mitigation leads to complex and dynamic interactions between the energy and the land-use sector via emission pricing policies and bioenergy markets. Projected bioenergy deployment depends on climate target stringency as well as assumptions about context variables such as technology development, energy and land markets as well as policies. This study investigates the intra- and intersectorial effects on physical quantities and prices by coupling models of the energy (REMIND) and land-use sector (MAgPIE) using an iterative soft-link approach. The model framework is used to investigate variations of a broad set of context variables, including the harmonized variations on bioenergy technologies of the 33rd model comparison study of the Stanford Energy Modeling Forum (EMF-33) on climate change mitigation and large scale bioenergy deployment. Results indicate that CO2 emission mitigation triggers strong decline of fossil fuel use and rapid growth of bioenergy deployment around midcentury (~ 150 EJ/year) reaching saturation towards end-of-century. Varying context variables leads to diverse changes on mid-century bioenergy markets and carbon pricing. For example, reducing the ability to exploit the carbon value of bioenergy increases bioenergy use to substitute fossil fuels, whereas limitations on bioenergy supply shift bioenergy use to conversion alternatives featuring higher carbon capture rates. Radical variations, like fully excluding all technologies that combine bioenergy use with carbon removal, lead to substantial intersectorial effects by increasing bioenergy demand and increased economic pressure on both sectors. More gradual variations like selective exclusion of advanced bioliquid technologies in the energy sector or changes in diets mostly lead to substantial intrasectorial reallocation effects. The results deepen our understanding of the land-energy nexus, and we discuss the importance of carefully choosing variations in sensitivity analyses to provide a balanced assessment. © 2020, The Author(s).