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Fossil Fuels
…including both normally operating and extinguished flares) to be around 92%, resulting in methane emissions of about 8 Mt. Policy makers need to develop regulations to address this gap.
Promote industry action and co-operation
The oil and gas industry can reduce emissions by: Ensuring that GHG monitoring and emission reductions are a strategic priority and an essential element of day-to-day operations. Supporting governments in the development of regulations on flaring and methane emissions that promote best standards for monitoring, reporting and emission reductions. Routinely categorising, tracking and prioritising emission reduction opportunities as part of well reservoir and plant…
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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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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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Renewables
Ensure renewable energy policy stability and predictability
For all renewable power and heat technologies, long-term targets and policy stability are essential to ensure investor confidence and continued growth. At the same time, policies need to adapt continuously to changing market conditions to achieve greater cost-competitiveness and to improve the integration of renewables into the energy system.
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…
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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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Energy Efficiency and Demand
Energy Efficiency and Demand
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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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Buildings
Implement zero-carbon-ready building standards for new and existing buildings, establish enforcement and compliance procedures
Building energy codes are an essential policy tool for improving buildings performance. Adapting energy codes to include metrics for life cycle emissions and resiliency requirements is fundamental to reflect evolving needs for decarbonising buildings and improving building performance, comfort, and resilience. Regulations can also require that new buildings be “demand-response ready” to enable future flexibility.
Introduce supporting information instruments and incentives to drive implementation of the regulations
Building energy performance certificate schemes or disclosure programmes can enhance compliance with building codes by publicising…
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Transport
Plan for compact urban development with improved public transport and infrastructure for micromobility and active travel
More than half of the world’s population lives in cities. With urbanisation on the rise, urban governance should encompass transport strategies that can induce modal shift towards low-emission transport in order to get in step with the NZE Scenario. The resurgence in active modes of transport during and following the pandemic has provided governments with a policy window to improve and expand infrastructure (e.g. bicycle lanes and car-free zones) and make road re-allocation measures permanent. Transit-oriented development that…