Tag: IEA

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IEA Predicts Peak in Oil, Gas Demand by 2030

Petrol. (File Photo: IANS)

Even under today’s policy settings, global demand for both oil and gas is set to peak by 2030, according to the latest IEA projections….reports Asian Lite News

As oil and gas producers face pivotal choices about their role in the global energy system amid a worsening climate crisis fuelled in large part by their core products, a major new special report from the International Energy Agency (IEA) on Thursday showed how the industry can take a more responsible approach and contribute positively to the new energy economy.

The Oil and Gas Industry in Net Zero Transitions, analyses the implications and opportunities for the industry that would arise from stronger international efforts to reach energy and climate targets.

Released ahead of the COP28 climate summit in Dubai, the special report sets out what the global oil and gas sector would need to do to align its operations with the goals of the Paris Agreement.

Even under today’s policy settings, global demand for both oil and gas is set to peak by 2030, according to the latest IEA projections.

Stronger action to tackle climate change would mean clear declines in demand for both fuels.

If governments deliver in full on their national energy and climate pledges, demand would fall 45 per cent below today’s level by 2050.

In a pathway to reaching ‘net-zero’ emissions by mid-century, which is necessary to keep the goal of limiting global warming to 1.5 degrees Celsius within reach, oil and gas use would decline by more than 75 per cent by 2050.

Yet the oil and gas sector, which provides more than half of global energy supply and employs nearly 12 million workers worldwide, has been a marginal force at best in transitioning to a clean energy system, according to the report.

Oil and gas companies currently account for just one per cent of clean energy investment globally — and 60 per cent of that comes from just four companies.

“The oil and gas industry is facing a moment of truth at COP28 in Dubai. With the world suffering the impacts of a worsening climate crisis, continuing with business as usual, is neither socially nor environmentally responsible,” said IEA Executive Director Fatih Birol.

“Oil and gas producers around the world need to make profound decisions about their future place in the global energy sector. The industry needs to commit to genuinely helping the world meet its energy needs and climate goals, which means letting go of the illusion that implausibly large amounts of carbon capture are the solution.

“This special report shows a fair and feasible way forward in which oil and gas companies take a real stake in the clean energy economy while helping the world avoid the most severe impacts of climate change,”said Fatih Birol.

Responding to the IEA report, COP28 CEO Adnan Amin said the report reinforces the need for COP28 to be an inflection point in the world’s efforts to tackle climate change and keep 1.5 within reach.

The world must deliver an ambitious decision on the Global Stocktake and give some good news.

“The report specifically notes that all sectors must be part of the solution. Real tangible climate action will only come with everyone at the table, and we have always said that we cannot have an energy transition without the energy industry.

“I have consistently called on oil and gas sector to aim for the highest possible ambitions and deliver urgent action through decarbonisation. We believe the oil and gas industry can do more. That is why I have been calling for the oil and gas industry to align around ‘net zero’ by or before 2050 and zero out methane emissions by 2030. They must decarbonise their own businesses and support the global transition.”

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-Top News India News

IEA chief pitches for G20 agenda on clean energy  

He emphasized on the advanced economies and the broader international community mobilizing more of the necessary finance…reports Asian Lite News

G20 should come up with an ambitious agenda on clean energy investment, according to Fatih Birol, the Executive Director of International Energy Agency (IEA).

Citing lack of investment in the global south, he said: “Clean energy investment has soared in recent years and is set to reach more than $1.7 trillion this year. But it is not evenly spread. Advanced economies and China account for 95% of the growth in clean energy investment since 2015. And the Netherlands – without any disrespect to the Netherlands, a small country and with quite grey weather – has more installed solar PV capacity in 2022 than the entire continent of Africa. Let that sink in for a moment.“

“To remedy this, we need an ambitious agenda from the G20 on clean energy investment, including making sure that our development finance institutions have the mandate, flexibility and the funds to play their part,” he said while addressing the G20 Development Working Group Ministerial.

He emphasized on the advanced economies and the broader international community mobilizing more of the necessary finance.

“Of course, each country will choose its own pathway. But the emergence of the new clean energy economy opens huge opportunities for developing countries to fuel their development in a clean, sustainable, affordable and secure way.”

He noted that in the current scenario, economic growth and development must be pursued in an environmentally sustainable way, addressing biodiversity loss, climate change and air pollution together.

Birol was of the view that there is a need for a new participatory and inclusive approaches to revolutionize the link between development, the environment and energy.

“When we look at the energy situation today globally, we still see a stark divide between the haves and the have-nots, between advanced economies and developing economies, between rich and poor. Half of global CO2 emissions today come from just 10% of the global population. Many of the countries that have contributed the least to causing climate change are, at the same time, the most exposed to its devastating effects. That is profoundly unjust.”

He noted that the situation has been made worse by the pandemic and global energy crisis.

Observing that the an average person in sub-Saharan Africa consumes 20 times less electricity than the average person in an advanced economy and over 600 million people in sub-Saharan Africa still lack any access to electricity, he said that ensuring people-centred energy transitions, and facilitating the investment and financing in emerging and developing economies must be made a greater priority.

Energy transitions are central to the G20 agenda. In 2023, during India’s presidency, the geopolitics and governance of energy have become immensely challenging, as the shift from fossil fuels to renewable energy, concerns about energy security and, in many cases, the pressure on keeping financial commitments made related to tackling climate change have become complicated.

The International Energy Agency counts 20 million more people worldwide without electricity now compared to 2021. Predictably, the worst-affected are in sub-Saharan Africa, which is back to its lowest rate of electrification since 2013. In Europe, the number of people experiencing inadequate energy supply has risen to 80 million from 34 million in 2021.

Even middle-income countries in Africa, South America and Asia face fuel and electricity shortages and high levels of inflation. Reduced availability of energy is hurting economies as industries close, and is impacting public health as safe fuels such as cooking gas become expensive. A number of countries also face a balance of payments crisis, partly driven by high energy costs. “Energy poverty” is global and widespread, impacting technology implementation, industry and sustainable development goals — all of which are also G20 goals.

An independent task force initiated by Gateway House in October 2022 seeks urgently to find ways to provide energy access, security and affordability. This requires resolving the conflicts between short-and long-term energy targets, addressing energy disruptions caused by the Covid-19 pandemic and the Ukraine-Russia conflict, and using creative financing to accelerate the development and adaptation of renewable technologies and new business models utilising these technologies. The G20 has a key role to play in advancing solutions.

A possible game-changer could be the creation of a Global Climate Finance Agency to better integrate and drive this global agenda, including at very practical levels. The agency could be mandated to lower hedging costs to mitigate a key risk faced by developers of green projects and to insure major clean energy projects from potential losses due to problems such as the failure of government utilities to meet supply and payment obligations — a persistent issue in developing countries, including India.

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-Top News India News

Petroleum Ministry inks pact with IEA on data sharing

The training and internships of officers from PPAC to IEA for energy modelling and statistics by IEA experts would also be organised to develop skillsets required for challenges posed by energy transition…reports Asian Lite News

The Indian government on Tuesday signed a pact with the Paris-based International Energy Agency (IEA) for strengthening cooperation in the field of data and research and for enhancing global energy security, stability, and sustainability.

The Statement of Intent (SoI) was signed in the presence of Petroleum and Urban Affairs Minister Hardeep Puri, by P Manoj Kumar, Director General of Petroleum Planning and Analysis Cell (PPAC) and Fatih Birol, Executive Director of IEA, on the sidelines of India Energy Week, being held in Bengaluru from February 6 to 8.

The SoI will initiate cooperation in the energy sector between the PPAC and the IEA, wherein comprehensive datasets, reports and analyses will be made available for better analysis and interpretation.

The training and internships of officers from PPAC to IEA for energy modelling and statistics by IEA experts would also be organised to develop skillsets required for challenges posed by energy transition.

Both PPAC and IEA intend to co-operate under the pact in the areas of energy market data and statistics, biofuels (bioethanol and biodiesel) and compressed bio-gas (CBG) and other emerging fuels.

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Environment

IEA reveals methane emissions 70% higher than official data

Methane dissipates faster than carbon dioxide (CO2) but is a much more powerful greenhouse gas during its short lifespan, meaning that cutting methane emissions would have a rapid effect on limiting global warming….reports Asian Lite News

Global methane emissions from the energy sector are about 70 per cent greater than the amount national governments have officially reported, said a new IEA analysis on Wednesday, underlining the urgent need for enhanced monitoring efforts and stronger policy action to drive down emissions of the potent greenhouse gas.

Methane is responsible for around 30 per cent of the rise in global temperatures since the Industrial Revolution and quick and sustained emission reductions are key to limiting near-term warming and improving air quality.

Methane dissipates faster than carbon dioxide (CO2) but is a much more powerful greenhouse gas during its short lifespan, meaning that cutting methane emissions would have a rapid effect on limiting global warming.

The energy sector accounts for around 40 per cent of methane emissions from human activity, and this year’s expanded edition of the IEA’s Global Methane Tracker includes country-by-country emissions from coal mines and bioenergy for the first time, in addition to continued detailed coverage of oil and natural gas operations.

Methane emissions from the energy sector grew by just under five per cent last year. This did not bring them back to their 2019 levels and slightly lagged the rise in overall energy use, indicating that some efforts to limit emissions may already be paying off.

“At today’s elevated natural gas prices, nearly all of the methane emissions from oil and gas operations worldwide could be avoided at no net cost,” said IEA Executive Director Fatih Birol.

“The International Energy Agency has been a longstanding champion of stronger action to cut methane emissions. A vital part of those efforts is transparency on the size and location of the emissions, which is why the massive underreporting revealed by our Global Methane Tracker is so alarming.”

Last year, significant emissions were confirmed in Texas and parts of Central Asia, with Turkmenistan alone responsible for one-third of large emissions events seen by satellites in 2021.

Relatively few major leaks were detected for the major onshore oil and gas producers in the Middle East.

Satellites have greatly increased the world’s knowledge of emission sources, and the IEA Global Methane Tracker incorporates the latest readings from satellites and other science-based measurement campaigns. While measured data continues to improve, the coverage provided by satellites is still far from complete: existing satellites do not provide measurements over equatorial regions, offshore operations, or northern areas such as the main Russian oil and gas producing areas.

Yet uncertainty over emissions levels is no reason to delay action on methane. Major reductions can be achieved with known technologies and with tried and tested policies that have been proven to work effectively.

The Global Methane Tracker includes a new detailed policy explorer that provides examples of effective implementation and shows where these policies could be most impactful.

Carbon emission(Pixabay)

If all methane leaks from fossil fuel operations in 2021 had been captured and sold, then natural gas markets would have been supplied with an additional 180 billion cubic metres of natural gas. That is equivalent to all the gas used in Europe’s power sector and more than enough to ease today’s market tightness.

The intensity of methane emissions from fossil fuel operations range widely from country to country: the best performing countries and companies are over 100 times better than the worst.

Global methane emissions from oil and gas operations would fall by more than 90 per cent if all producing countries matched Norway’s emissions intensity, the lowest worldwide.

The Global Methane Pledge, launched in November by more than 110 countries at the COP26 Climate Change Conference in Glasgow, marked an important step forward.

Led by the European Union and the US, its participants agreed to reduce methane emissions from human activities — including agriculture, the energy sector and other sources — by 30 per cent by 2030. However, more major emitters need to join.

Of the five countries with the largest methane emissions from their energy sectors — China, Russia, the US, Iran and India — only the US is part of the Pledge as things stand.

“The Global Methane Pledge must become a landmark moment in the world’s efforts to drive down emissions,” said Birol. “Cutting global methane emissions from human activities by 30 per cent by the end of this decade would have the same effect on global warming by 2050 as shifting the entire transport sector to net zero CO2 emissions.”

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