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Low-Emissions Fuels
Develop certification and standards to ensure that low-emissions fuels are sustainable
The development of standards and certification schemes ensuring a sustainable supply chain will be critical for scaling up the production of both biofuels and hydrogen, while avoiding potentially harmful environmental, economic and social impacts. The development of international markets and trade in these fuels will also depend on internationally agreed methods and certification processes to guarantee the sustainability of traded fuels.
Create support programmes for the use of low-emissions fuels
With the use of low-emissions fuels still in most cases being more expensive than unabated fossil…
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Transport
…entire sector. Managing travel demand, distances travelled and car dependency; sustaining active modes of travel; and supporting the recovery of public transport.
Use fiscal instruments to stem transport emissions and encourage modal shift
In countries where high fuel taxes are levied, light-duty vehicle fuel consumption (measured in litres of fuel consumed per vehicle-kilometre) is among the lowest in the world. Other fiscal measures, including higher taxation of large, heavy vehicles and/or lower taxation of small, lightweight vehicles can accelerate fuel economy improvements. At the subnational level, measures such as congestion charges, parking fees, road pricing and tolls…
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Energy Efficiency and Demand
Energy Efficiency and Demand
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Fossil Fuels
Adopt policies and regulations to reduce emissions from oil and gas supply
Policies should encourage operators to maximise abatement opportunities at the early stages of project planning and development, in addition to incentivising better management of existing facilities. Regulatory measures to prevent methane emissions from oil and gas operations include requiring leak detection and repair programmes, the installation of emission control devices, and the replacement of components and devices that emit methane in their normal operations. Major oil- and gas-producing countries can add commitments to reduce methane emissions to their nationally determined contributions. Government and industry should not delay…
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Industry
Adopt mandatory CO2 policies covering industry and expand international co-operation
Governments can promote CO2 emission reduction by adopting industry sector transition plans and mandatory emissions policies, such as a carbon price.Ideally, governments would make efforts to apply mandatory policies globally at a similar level, but if the strength of international action differs, measures such as carbon border adjustments could be considered in order to help prevent carbon leakage. Further participation in multilateral fora is needed to negotiate sectoral agreements and provide international finance to assist the transition in developing economies.
Manage existing assets and near-term investments in…
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Buildings
…to drive the market transformation towards high-performing buildings
Setting mandatory targets towards zero-carbon-ready buildings fosters market growth and facilitates long-term investment decisions. Targets can include renewable penetration quota, fossil fuel bans, and target renovation rates to foster market growth and facilitate long-term investment decisions.
Stimulate financing and market mechanisms to increase the affordability of best-in-class products
Financing and market mechanisms are needed to accelerate the clean energy transition. Governments can enact policy interventions to improve access to financing and de-risk clean energy investment to enhance the attractiveness of buildings sector investment…
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Electricity
Ensure long-term target and policy stability
Target and policy stability is essential in enabling the transition to a low-emission electricity sector by providing investors with the stability and long-term investment signals required to cost-effectively deploy capital-intensive low-emission technologies like renewables, nuclear and CCUS.
Establish carbon pricing and regulations
Carbon pricing, carbon taxes and the regulation of plant emissions can encourage coal-to-gas switching and provide an important long-term investment signal for low-emission technologies.
Shift policy to competitive auctions
Auctions for the centralised competitive procurement of renewables have become increasingly…
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Carbon Capture Utilisation and Storage
Co-ordinate and promote the development of CCUS hubs and shared networks
CCUS hubs can spread infrastructure costs between emitters and generate economies of scale to reach emitters that are smaller-scale or further away from identified CO2 storage sites. Governments can have a key role in the development of hubs by: Co-ordinating hub development through competitive solicitations that encourage collaboration across multiple sectors (e.g. industrial emitters, power plants). Efforts are already underway in Canada, the United States, and the United Kingdom. Ensuring legal and regulatory frameworks are designed to account for shared infrastructure networks that allow for non-discriminatory open access…
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Renewables
…Focus on an energy system perspective
Achieving a high penetration of renewable power and heat technologies is a necessary condition to decarbonise many carbon-intensive sectors of the economy, including heavy industry, construction and transport. The expansion of renewable hydrogen use, emissions-free heating in buildings, and electric vehicles requires an integrated approach, connecting the utilisation of all renewable energy technologies. Policy makers should focus on implementing long-term plans for whole-economy decarbonisation and implement incentives reflecting the requirements of all economic sectors.
Shift policy to competitive auctions
Policy instruments used to support renewable power include administratively set…