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Carbon Capture Utilisation and Storage
…government efforts to support CCUS deployment are effective and successful in the long term. Governments can signal their strategic interest in CCUS through the inclusion of CCUS in national energy and climate strategies – for example, the EU Net Zero Industry Act identifies CCUS as a key strategic net zero technology – or in their Nationally Determined Contributions under the Paris Agreement. The creation of national or regional CCUS targets can help signal strategic interest. Governments can also create an enabling environment for CCUS projects, such as through the establishment of a carbon pricing system; capital grants to reduce up-front costs…
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Electricity
…example through auctions, are necessary to achieving this ambition. Rising shares of variable renewables increase the flexibility requirements of the electricity system, and market designs should be adjusted to better reward the provision of flexibility, improving the business case for flexible generation, grid-scale storage and demand-side response.
Support CCUS deployment in the power sector
As CCUS in the power sector is still at an early stage of commercialisation, complementary and targeted policy measures such as tax credits and grant funding are needed to secure investment. Furthermore, new coal-fired units should be constructed CCUS-ready, with efficiencies consistent…
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Industry
…zero-emission materials allows firms to be confident that if they invest in near zero-emission production technologies, there will be a buyer for their products. In the near term, time-limited demand creation for low-emission materials – which achieve substantial emission reductions but are not yet at near zero-emissions – can be an important step to catalyse the transition.Initial policies should guarantee long-term support for early market entrants – examples include carbon contracts for difference, public procurement and advance market commitments. Later, policies such as requiring a minimum market share for near zero- and low-emission materials can…
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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…
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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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Renewables
…investment in all forms of flexibility become crucial. Solutions include enhancing power plant flexibility, unlocking demand-side management, supporting energy storage and improving grid infrastructure.
Address technology-specific challenges
Some renewable technologies are still relatively expensive and/or face specific technology and market challenges, so they require more targeted policies. Better remuneration of the market value of storage is necessary to accelerate deployment of CSP, pumped-hydro storage and reservoir hydropower technologies. Timely grid connection and continued implementation of policies that spur competition are needed to achieve further cost reductions in offshore wind. Improving the competitiveness of renewable heating technologi...
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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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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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Energy Efficiency and Demand
Energy Efficiency and Demand
