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Electricity
…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 objectives relies on their design and consequent ability to attract investment and competition.
Adapt market designs and policies to support variable renewables and increase flexibility
Accelerating the rollout of renewables is of vital importance to get on track with the Net Zero Scenario. Consistent targets and adequate policy support for renewables, for example through auctions…
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Carbon Capture Utilisation and Storage
…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. The creation of national or regional CCUS targets can help signal strategic interest. Governments can also create an enabling environment for CCUS projects…
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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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Industry
…this trend by joining initiatives to purchase near zero-emission industrial products.
Develop the supporting infrastructure for industrial decarbonisation
Due to long lead times, supporting infrastructure could become a significant bottleneck to significant action on industrial decarbonisation before 2030. Governments have a crucial role to draw up a long-term vision and need to send clear and early signals to developers and system operators. In addition, policies and regulations need to be put in place to reduce permitting times without undermining environmental standards.
Substantially increase investment in RD&D of essential near zero-emission industrial technologies
Innovation this decade will…
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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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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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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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Renewables
…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 for solar PV and…