Worldwide, investment in energy efficiency worldwide is likely to be down 9% year-on-year This global network of researchers and policy experts shares the latest technology research and best practices to advance Solar PV energy deployment. Many are boosted by remittances and direct aid from advanced economies that could be at risk because of the economic slowdown. IFIs and MDBs have also been among the largest foreign direct investors in clean energy technologies in developing countries in recent years, offering short-term credit or guarantees (to improve risk-adjusted returns for private investors), helping to remove barriers to investment and providing technical assistance. Publications. A variety of efficiency improvements in industrial processes would curb electricity use. In the longer term, however, targeted support to develop and deploy emerging clean energy technologies and boost the skills base of domestic workers could bring important benefits in terms of sustainability and resilience. It stimulates investment in electricity networks and energy storage, which reduces the risk of supply disruptions; it helps to modernise grids, thus strengthening the ability to withstand and recover from shocks; and it increases affordable access to energy services, helps to integrate increasing shares of variable renewable electricity, and improves system reliability. An average of around 130 gigawatts (GW) of additional wind and solar PV global capacity would be installed each year from 2021 to 2023 (additional to the levels that would be installed in the absence of the recovery plan). 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. Accelerate renovation and construction activity by introducing or strengthening requirements for highly efficient or near-zero energy buildings. Around 5% of the jobs created by the sustainable recovery plan would be suitable for unskilled labour: a number of measures, like waste collection and biofuels support, would also be likely to support a significant number of workers in the informal economy. 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. Some of the measures, particularly those involving new infrastructure such as transmission lines, power plants and roads for maintenance, would have an impact on biodiversity and natural ecosystems. through an increase in taxes or reduction in government consumption). This direct expenditure, together with enabling policies, mobilises private spending of close to $700 billion.2. Incorporating additional elements of the sustainable development agenda, such as energy and water, or energy and gender, highlight further synergies. 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. The economic impact of Covid-19 is likely to be felt most profoundly by the poor and economically vulnerable segments of society. Around one-third of the CO2 emissions reductions that would occur as a result of the sustainable recovery plan have negative abatement costs, meaning they would save emissions while also saving money. Taking into account country-specific circumstances and the world’s shared goals on sustainability, we have developed a practical, concrete and time-limited global sustainable recovery plan for the energy sector that would collectively deliver on all three objectives. While the construction jobs for these investments would be created locally, some of the manufacturing jobs, which make up around 20% of the total job-years created, would be created outside the region making the investment. To reduce the social impact of these job losses, well-resourced retraining, capacity building and regional revitalisation programmes will be required to enable workers and communities to find attractive alternative livelihoods. The sustainable recovery plan would provide further long-term employment by “inducing” further jobs across the economy: spending by those in new jobs would lead to further job creation in other sectors. Of the 9.5 million total job-years for energy efficiency in buildings and industry, just under 60% are for buildings retrofits and efficient new construction. Compare the new SDS 2020 to IPCC scenarios with a This is not something that is within the power of the energy sector alone to deliver. Overview Reports Contacts The goal of Task 12 is to foster international collaboration and knowledge creation in PV environmental sustainability and safety, as crucial elements for the sustainable growth of PV as a major contributor to global energy supply and emission reductions of … A multi-track approach is needed to close gender gaps and achieve equality in employment and remuneration (ILO, 2019). less than 1.5°C Restarting and supporting these projects – while ensuring the health of workers – could provide an immediate boost in employment and economic output. Many people in developing economies still lack access to modern energy and clean cooking. This generates savings for households, firms and governments which can be reinvested. 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. EXPERTS IN Rail IEA provides heavy civil support to some of the largest class I railways in the country, as well as regional light railways. This report summarizes the main conclusions of a joint workshop of IEA Bioenergy Task 39 and the European Commission’s Joint Research Centre in Ispra (Italy), 16-17 May 2019. New projects of this kind would provide some immediate opportunities for those who have lost or stand to lose jobs in construction and manufacturing because of the pandemic and its fallout. Modest levels of investment in these areas can often generate large social and environmental improvements, while at the same time boosting energy resilience and facilitating economic growth. Promote auctions, grants and rebates that seek to improve the energy efficiency of new and existing buildings. Alongside direct government expenditure, consideration could be given to supporting the development of a pipeline of projects by modifying incentive structures and streamlining planning laws and procedures, which could make investment in such projects more attractive to private finance. We hope to help and inspire people to lead more sustainable lives every day with our products. EXPERTS IN Rail. In low-income countries without full electricity access where many people rely on the traditional use of biomass for cooking, investment in grids, decentralised systems and clean cooking solutions could employ around 350 000 people globally on average in the period to 2023. 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). Many could also face particularly severe economic difficulties because of high existing levels of public sector debt and high levels of informal or insecure jobs; in some cases these difficulties may be compounded by weakness in their institutions. This spending would be additional to the annual levels of expenditure on clean energy measures that have occurred in recent years and includes both public spending and private finance that would be mobilised by public policies. Developing a more modern and resilient energy system requires investment in longer term infrastructure and energy efficiency projects. In some cases, it may be possible to use direct government expenditure to underpin measures such as improving effective regulatory procedures, reforming energy taxes, setting or raising actual or effective carbon prices, and reducing risks for private investment. The Global Status Report 2017 was prepared by Thibaut Abergel, Brian Dean and John Dulac of the International Energy Agency (IEA) for the Global Alliance for Buildings and Construction (GABC). 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. 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. Making sustainable living more inspiring and affordable. The other major shift in spending is towards the demand side, to take advantage of the huge potential for energy efficiency. We look first at the temporary construction and manufacturing jobs that would be created and then at the longer term operations, maintenance and management jobs. IEA Bioenergy is an organisation set up in 1978 by the International Energy Agency (IEA) with the aim of improving cooperation and information exchange between countries that have national programmes in bioenergy research, development and deployment. Globally, annual energy-related CO. Energy systems would also become more resilient as a result of the plan. In the three decades since we were founded, we have brought the IKEA Brand to 30 countries and millions of homes. Required investment was higher in WEO-2019, at $45 billion per year. We estimate that the overall spending need for the plan is around $1 trillion per year over the next three years: this represents about 0.7% of global GDP today, and includes both public spending and private finance that would be mobilised by public policies. 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). International co-operation. The estimate isolates the specific impacts of the sustainable recovery plan by comparing its results against a baseline that assumes no other increase in investment. The current low cost of capital adds force to the case for supporting research and development, providing market incentives, promoting commercial demonstration plants, and encouraging the scaling up of manufacturing capacity. Deliver shovel-ready clean energy projects that boost resilience, Develop a strong pipeline of new projects. Learn More View Projects. Mobilise private finance. The report was coordinated by United Nations Environment Programme and However, if LDAR programmes stop, new leaks that could occur would not be found and fugitive emissions would rise again. However, we estimate that around 40% of the jobs created globally in the sustainable recovery plan would be in specialised positions, which would require substantial retraining programmes. You can unsubscribe at any time by clicking the link at the bottom of any IEA newsletter. A wide range of policies would be required to support the deployment of this plan with the aim of delivering shovel-ready clean energy projects that boost resilience; developing a strong pipeline of new projects; tailoring support for distressed industries; mobilising large levels of private finance; and strengthening international co-operation. Establish public co-funding schemes to reduce upfront investment costs through grants, concessional loans, public procurement and feed-in-tariffs. Lower oil use in transport is the main cause of reduced NOX emissions. As the figure above makes clear, the SDS trajectory is well within the envelope of these scenarios. 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. For internationally traded goods and technologies, promote the alignment of measures to support production with measures to stimulate demand. Total government spending over the three years of the plan ($870 billion) would be equivalent to less than 10% of estimated fiscal expenditure in recovery plans that have been announced globally as of the end of May 2020 (Battersby, Lam and Ture, 2020). This report is the IEA’s review of global developments in energy efficiency. The International Energy Agency has released the latest in its series of annual reports on the field of energy efficiency. While workers may be available from overseas to fill immediate skills gaps, investment in retraining and capacity building would be essential to supply this segment of the labour market. It Investment in the energy sector can provide jobs and boost growth, while strengthening the resilience of energy systems and making energy more affordable, thereby supporting broad economic activity and jobs in all parts of the economy. A further $30 billion would be spent each year to accelerate deployment of recharging networks for electric vehicles, upgrade public transport, and improve walking and cycling infrastructure. It starts with the SDG outcomes and then works back to set out what would be needed to deliver these goals in a realistic and cost-effective way. A number of end-uses in buildings could switch to renewable sources, such as solar water heaters and biomass boilers, to reduce fossil fuel and electricity use. Public policies have an essential part to play in facilitating the deployment of private capital through regulations, market frameworks and tax reforms. Today, the IKEA Sustainability Report FY18* is released – reporting progress from across the IKEA value chain and franchise system towards the commitment to become People & Planet Positive. The SDS sets out an ambitious and pragmatic vision of how the global energy sector can evolve in order to achieve these critical energy-related SDGs. Jobs related to cars account for over 10%, and those arising from other transport measures are also about 10%. Incentives for efficient and electric cars would likely encourage some consumers to change planned car purchases and some consumers to make new car purchases. “We know that sustainable living often is a luxury for the few. Markets dominated by monopolies and state-owned enterprises are often less attractive to foreign investors. The International Energy Agency (IEA), founded in 1974, is an autonomous body within the framework of the Organization for Economic Cooperation and Development (OECD). The already sluggish pace of global progress on energy efficiency is set to slow further this year as a result of the economic impacts of the Covid-19 crisis, deepening the challenge of reaching international energy and climate goals and making stronger government action critical More than 2.6 billion people also relied on traditional uses of biomass, coal or kerosene as their primary cooking fuel in 2018. Energy consumer bills would also be lower across all regions, freeing resources for spending in other sectors. 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. Emissions would be nearly 3.5 gigatonnes of CO2 (Gt CO2) lower by 2025 than they would have been without the recovery plan. Investments in the 2021-2023 period are therefore aligned with the Sustainable Recovery depicted in the World Energy Outlook Special Report. The Technology Collaboration Programme (TCP) was created with a belief that the future of energy security and sustainability starts with global collaboration. Australia Country Report Status of Solar Heating/Cooling and Solar Buildings - 2020 . 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. This additional capacity would generate nearly 320 terawatt-hours (TWh) of electricity on average each year. The IEA recently updated the price and cost assumptions in its 450 Scenario, which now assumes oil and gas prices in 2030 of around $85 per barrel and $4.80 per MMbtu respectively, and CO 2 equivalent costs of $100 per tonne for developed economies (all in real terms). Welcome to the Home of IEA Bioenergy Task 43 We explore technical and economic strategies to increase the quantity of biomass available, improve the quality of biomass delivered for different energy purposes, and explore strategies to increase the value and foster confidence in biomass supply for both direct and cascade use of biomass for energy. The SDS holds the temperature rise to below 1.8 °C with a 66% probability without reliance on global net-negative CO2 emissions; this is equivalent to limiting the temperature rise to 1.65 °C with a 50% probability. 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. Cross-border collaboration could also be useful in helping to re-establish some international supply chains disrupted by the Covid-19 crisis. The world is not on track to meet the energy-related components of the Sustainable Development Goals (SDGs). The need for such investment should be carefully assessed; it should last only as long as necessary and it should be undertaken with a view to facilitate private finance where appropriate. Thank you for subscribing. For example, in sub-Saharan African countries (excluding South Africa), every $1 of public funding in power generation attracted around $0.6 of private capital in recent years, much lower than the levels for South Africa ($4.5) and countries in Southeast Asia ($3.5). Operations, maintenance and management job creation. Some rely on income from oil and gas exports and have seen a major drop in revenues. Governments can improve the prospects for mobilising private financing with targeted interventions to support risk sharing, liquidity support and take-out financing. Also, beyond IEA Bioenergy, several systems to quantify and report on sustainability performance of bioenergy systems have been developed and implemented, for example by the Global Bioenergy Partnership (GBEP 2011); the standard ISO 13065:2015 (Sustainability criteria for bioenergy), and in many non-governmental schemes, e.g. The sustainable recovery plan would kick-start the reductions needed to achieve the goals of the Paris Agreement. *Based on relative levels of jobs created per unit of spending and dollars per tCO2-eq avoided. 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. While initial investment from the recovery plan is needed to stimulate action, the savings from the projects would accrue to firms and households, reducing short-term risks of energy insufficiency and income stress, and would eventually be reinvested to stimulate further economic activity and induce further job growth. The sustainable recovery plan rests on five key policy pillars. 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). 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 enormity of the shock caused by the Covid-19 pandemic is prompting governments around the world to develop economic recovery plans that will shape infrastructure and industries for decades. Household air pollution causes around 2.5 million premature deaths every year; progress on clean cooking would substantially reduce this. In fact, some countries have introduced additional price interventions to protect newly vulnerable consumers, particularly in the electricity sector (IEA, 2020). The IPCC Special Report on Global Warming of 1.5°C, published in 2018, assessed a large number of scenarios that led to at least a 50% chance of limiting the temperature rise to 1.5 °C. If all countries were to follow the proposals set out in the sustainable recovery plan: The sustainable recovery plan would have a marked impact on GHG emissions. Construction and manufacturing jobs only last as long as there is a steady stream of new projects, and at some point countries would need to assess the need to repopulate the project pipeline to sustain these jobs. “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. Provide more long-term contracts and regulatory investment guarantees. Good policy design can exploit synergies between the three parallel objectives of the SDS. For example, it is estimated that remittances in 2020 going to countries in sub-Saharan Africa could fall by almost 25% from 2019 levels, while remittances to countries in Latin America could fall by 19% (Ratha et al., 2020). A number of countries have announced support packages for their construction, vehicle manufacturing and airline industries, for example. 1.6-1.7°C Some measures in the sustainable recovery plan would stimulate demand for imports of goods and services. In drawing up a sustainable recovery plan for energy, we have focused on three overarching objectives: to create jobs, to boost economic growth, and to improve resilience and sustainability. Strengthen international finance institutions sustainable development lending criteria. Keep up to date with our latest news and analysis by subscribing to our regular newsletter. Introduce or strengthen rules on measuring and reducing methane emissions from oil and gas operations. Bioenergy and bioeconomy goals require the development of sustainable biomass value chains. Globally, 860 million people did not have access to electricity in 2018, and around 60% of health services lack reliable access to electricity in most sub-Saharan countries (Cronk and Bartram, 2018). Tailor support for distressed industries. Provide a long-term vision on sustainability and resilience to guide investment decisions. Through its work, the IEA advocates policies that will enhance the reliability, affordability and sustainability of energy in its 30 member countries, 7 association countries and beyond. Improvements in health from reductions in air pollution and increases in the level of energy access in low-income countries also lead to additional medium- and long-term economic growth. One of the five key policy pillars of the sustainable recovery plan is the mobilisation of private financing to complement the direct government expenditure. Annual reports The Annual Report highlights the activities and accomplishments of the IEA PVPS Technology Collaboration Program. Many countries therefore benefit both from domestic recovery plan spending and (through exports) from the spending in advanced economies. It is important to note, however, that the assessment of measures may vary from one country to another. IEA (2020), World Energy Model, IEA, Paris https://www.iea.org/reports/world-energy-model. Investment in new industries, such battery manufacturing and hydrogen production, could also provide an important runway for future job growth. Suppliers for high-tech goods and services (for example relating to power networks and high speed rail) are often located in advanced economies, while basic fabrication materials and appliances are often manufactured outside of advanced economies. Construction and manufacturing job creation. Oil consumption in transport would be around 2 million barrels per day (mb/d) (100 Mtoe) less. Around $70 billion would be spent each year to improve the efficiency of existing industrial facilities through the deployment of improved electric motors, heat pumps and agricultural irrigation pumps, and wider implementation of energy management systems. to energy, demand side management and much more. Targeted engagement with the private sector and civil society can help improve transparency. Construction and manufacturing would account for the vast majority of the immediate jobs boost during the sustainable recovery plan, but long-lived capital assets built as a result of the plan would also give rise to continuing operations and maintenance (O&M) and management jobs. 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. Suitability of the various measures will vary across different regions; levels shown provide a global perspective. If the sustainable recovery plan were to be implemented by all countries globally, this would lead to the creation of around 9 million full-time equivalent energy sector jobs in construction and manufacturing by the end of 2021. Promote the use of energy management systems in light and heavy industries. The decline in the use of coal, mostly for power generation, is the main cause of lower SOX emissions. They have provided emergency financial assistance and debt relief to a number of low-income countries during the unfolding of the pandemic. This is the first ever Electricity Market Report produced by the International Energy Agency (IEA). It is for governments to make their own decisions about what measures to adopt and how much to spend, but action on the basis of the measures in the plan would provide a major boost to the global economy, create millions of new jobs, and ensure that the recovery yields long-lasting benefits for energy sustainability and resilience. Total annual average electric cars sales between 2021 and 2023 would be around 8 million. For example, leak detection and repair (LDAR) is a cost-effective way to avoid fugitive methane emission. This may underestimate the level of public spending since the economic downturn may reduce the relative willingness or ability of private firms to invest at historical levels. Status of the Market for Solar Thermal Systems ... there are a number of schemes that promote energy efficiency in buildings and also wider sustainability schemes. Consumption is the percentage increase in aggregate spending by households and firms. 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