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Industry
…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 order to create a smooth energy transition
The next investment cycle could have an enormous impact on the trajectory of emissions from industry in the next three decades, and action today is needed to lay the groundwork for a smooth transition. Policy makers should consider mandating retrofit…
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Energy Efficiency and Demand
Energy Efficiency and Demand
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Buildings
…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. They can also broaden the availability of market-based instruments that reduce barriers to the transition, for example via means-tested subsidies for household to retrofits or weatherisation, or installation of lower-carbon and more efficient appliances and equipment. Public competitions to stimulate innovation, such as the Buildings Upgrade Prize developed by the US Department of Energy Building Technologies Office…
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Transport
…require a co-ordinated policy approach that facilitates decarbonisation across all transport modes and expands supporting infrastructure. Measures at various levels of jurisdiction – national, subnational, within cities and in multi-country regional blocs – must support progress in: Defining clear R&D priorities for all transport technologies. Improving the efficiency of all transport modes. Stimulating the uptake of zero-emission vehicles. Increasing the availability and use of sustainable low-emission fuels across the 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…
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Electricity
…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 widespread in recent years and have been instrumental in discovering renewable energy prices and containing policy costs in many countries, especially for solar PV and wind. The success of such policies in achieving deployment and development…
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Renewables
…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 feed-in tariffs or premiums, renewable portfolio standards, quotas and tradeable green certificate schemes, net metering, tax rebates and capital grants. Recently, auctions for the centralised competitive procurement of renewables have become increasingly widespread and have been instrumental in discovering renewable energy prices and containing policy costs in many countries, especially…
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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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Fossil Fuels
…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 maintenance. Developing consistent measurement and reporting methodologies and nomenclature for GHG emissions and communicating progress on reduction targets. This includes establishing third-party verification systems and transparency for data and reporting. Building partnerships and expanding emission reduction criteria to cover oil...
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Carbon Capture Utilisation and Storage
…It is vital that they are equipped with sufficient funding, staff and expertise to oversee the implementation of CCUS regulations.
Implement a portfolio of policies to stimulate investment
Well-targeted policies and a portfolio of measures can help ensure 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…