Climate change is recognized as one of the key challenges facing the world in the 21st Century. It engages the energy sector particularly closely because energy is central both to the problem and to its resolution. Energy-related emissions (including energy used in transportation) account for over two thirds of anthropogenic greenhouse gas (ghg) emissions and contribute well over 80% of worldwide emissions of CO2, the main ghg, as a direct result of fossil fuel combustion. Energy also accounts for around one third of the global emissions of methane, the second largest source of ghgs, in fugitive emissions, mainly from natural gas production; transportation; and coal production. In addition, energy contributes a small share of global emissions of N2O, the third largest source, principally from biomass burning. But energy is also a key driver of social and economic development. A world without energy is inconceivable and would be incapable of development, sustainable or otherwise. Energy systems are therefore a necessity, and to be compatible with sustainable development. The Kyoto Protocol of 1997 was another major step, setting emissions reduction targets for most developed countries. However, it is not the sole motivating force for climate change measures. Many countries have taken measures independent of any Kyoto obligations – some have not ratified the Protocol; some have no specific targets under the Protocol; some wish to go beyond those targets. It is clear that significant action is being taken. What is less clear is how effective this action has been – whether the policies and measures are meeting all their goals, and whether they are meeting them in a balanced way; what their cost has been and what benefits have resulted.
Energy-related ghg emissions have been growing steadily; however, there are very considerable variations between regions and countries. In particular, developing countries show rapid energy and emissions growth, but from a very low relative base of energy use per capita. Their energy and development needs are still high. There is some evidence that emissions growth tends to slow down as economies mature; however, there are also a number of other important factors involved, some of which are more susceptible than others to policy intervention. The most significant impact on emissions has been made by reducing carbon intensity rather than energy intensity. The sector which gives most scope for reduced carbon intensity and emissions is electricity because of the availability of low or zero carbon technologies.
As emissions from the use of fossil fuels are seen as one of the contributory factors most amenable to corrective action, many of the policies and measures being implemented or considered are directed at the energy sector. At the same time, energy is a crucial input to economic and social development. It is thus of the utmost importance that energy policies and measures to respond to climate change do not compromise other vital goals, or at least that they are optimized for all key goals, both in respect to their long-term effects and during the transition phase.
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