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Cars and Vans
More stringent and broader coverage of fuel efficiency standards for light-duty vehicles is needed
For cars and vans, increasing fuel efficiency standards is important as even in the Net Zero Emissions by 2050 Scenario, nearly 80% of cars and vans on the road in 2030 are still powered with internal combustion engines. Sales of heavier, less efficient SUVs reached around 46% of global sales in 2022, while electric vehicles were just 14% of sales. More and more countries are formulating vehicle efficiency standards and some are even putting in place zero-emission vehicle sales requirements. To be in line…
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Light Industry
Country and regional highlights
Important investment programmes are being deployed to push energy efficiency and decarbonisation in light industries
CO2 emissions
While light-industry emissions have declined since 2010, a more rapid decline is needed to get on track with the NZE Scenario
Energy
The share of fossil fuel use is declining, but progress needs to accelerate
Technology deployment
Firms should prioritise technologies for low-emission process heat and increased energy efficiency
Innovation
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Nuclear Power
A new era for nuclear energy beckons as projects, policies and investments increase
As the world’s second-largest source of low-emissions electricity after hydropower, nuclear power today produces just under 10% of global electricity supply. Now, fresh momentum around the world has the potential to open a new era for nuclear energy.
Power generation from the global fleet of nearly 420 active nuclear reactors is set to reach a record high in 2025 as Japan restarts production, maintenance works are completed in France, and new reactors begin commercial operations in various markets, including China, Europe, India and Korea…
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Smart Grids
Country and regional highlights
Several major economies have announced substantial new funding to modernise and digitalise their electricity grids
Deployment
Clean, reliable and resilient electricity systems need smart grids more than ever
Innovation
Digital infrastructure in electricity grids is growing
Investment
Investment in electricity grids is growing, with more ambitious network plans to facilitate the electrification of the economy and the integration of renewables
International collaboration
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Heat Pumps
Heat pump sales stalled in 2023 as household budgets were squeezed
Global sales of heat pumps decreased by 3% in 2023 after two consecutive years of double-digit growth fuelled by the energy crisis. This slowdown reflects broader aversion to large-ticket purchases among consumers amid higher interest rates and inflation. Heat pumps are a large investment for households, and sales are particularly sensitive to borrowing costs and consumer sentiment.
At the same time, natural gas prices have mostly declined from their peaks in 2022, highlighting the need to tilt energy tariffs and taxes in favour of cleaner consumer choices…
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Space Cooling
Country and regional highlights
Updated energy efficiency standards and new policies target emissions associated with space cooling
CO2 emissions
Progress on efficiency and power decarbonisation have not been sufficient to curb emissions growth from rising space cooling demand
Energy
In 2022 energy consumption for space cooling further increased by more than 5% from 2021
Activity
More than half of floor area additions to 2030 will occur in areas of the world with a high need for space cooling
Policy
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Chemicals
Country and regional highlights
Important steps to deploy low-emissions chemicals production technologies are being taken in several regions
CO2 emissions
CO2 emissions must decouple from production by 2030 to get on track with the NZE Scenario
Energy
Energy consumption for feedstock will continue to rise with production, but process energy intensity declines rapidly in the NZE Scenario
Activity
Primary chemical production is set to keep growing in the NZE Scenario
Innovation
Supporting infrastructure
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Heating
The energy crisis has marked a turning point for residential gas demand in Europe
Heating is a significant driver of global energy demand, both in buildings and in industry, and is an important component of energy expenditure for households, especially in colder climates. Many households use natural gas to warm their homes, provide hot water and to cook. Residential and commercial gas demand dropped by more than 15% in 2022 compared to the year before. While 40% of the decline in residential and commercial demand in Europe can be attributed to weather-related factors (reduced space heating needs due to…
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International Shipping
Country and regional highlights
Advances in emissions regulations and technologies to decarbonise shipping
CO2 emissions
CO2 emissions from international shipping continued to rebound in 2022 following a dip in 2020
Energy
Scaling up low-emission fuels is the key to decarbonising international shipping
Technology deployment
Methanol-fuelled fleet increasing in near-term
Innovation
Industry continues to develop zero-emission vessels
Supporting infrastructure
Policy
International collaboration
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Demand Response
Country and regional highlights
Notable progress to advance demand response is being made
Activity
Demand response markets are expanding, but greater effort is needed to align with the Net Zero Scenario
Technology deployment
Enabling technologies offer high flexibility potential, although deployment is still lagging
Innovation
Innovative solutions and approaches are being tested to expand residential participation in demand response
Policy
International collaboration
Acknowledgements