Boom or Bust? Mapping Out the Known Unknowns of Global Shale Gas Production Potential

To assess the global production costs of shale gas, we combine global top-down data with detailed bottom-up information. Studies solely based on top-down approaches do not adequately account for the heterogeneity of shale gas deposits and hence, are unlikely to appropriately capture the extraction costs of shale gas. We design and provide an expedient bottom-up method based on publicly available US data to compute the levelized costs of shale gas extraction. Our results indicate the existence of economically attractive areas but also reveal a dramatic cost increase as lower-quality reservoirs are exploited. At the global level, our best estimate suggests that, at a cost of 6 US$/GJ, only 39% of the technically recoverable resources reported in top-down studies should be considered economically recoverable. This estimate increases to about 77% when considering an optimistic recovery of resources but could be lower than 12% when considering pessimistic ones. The current lack of information on the heterogeneity of shale gas deposits as well as on the development of future production technologies leads to significant uncertainties regarding recovery rates and production costs. Much of this uncertainty may be inherent, but for energy-system planning purposes, with or without climate change mitigation policies, it is crucial to recognize the full ranges of recoverable quantities and costs

The mutual dependence of negative emission technologies and energy systems

While a rapid decommissioning of fossil fuel technologies deserves priority, most climate stabilization scenarios suggest that negative emission technologies (NETs) are required to keep global warming well below 2 °C. Yet, current discussions on NETs are lacking a distinct energy perspective. Prominent NETs, such as bioenergy with carbon capture and storage (BECCS) and direct air carbon capture and storage (DACCS), will integrate differently into the future energy system, requiring a concerted research effort to determine adequate means of deployment. In this perspective, we discuss the importance of energy per carbon metrics, factors of future cost development, and the dynamic response of NETs in intermittent energy systems. The energy implications of NETs deployed at scale are massive, and NETs may conceivably impact future energy systems substantially. DACCS outperform BECCS in terms of primary energy required per ton of carbon sequestered. For different assumptions, DACCS displays a sequestration efficiency of 75–100%, whereas BECCS displays a sequestration efficiency of 50–90% or less if indirect land use change is included. Carbon dioxide removal costs of DACCS are considerably higher than BECCS, but if DACCS modularity and granularity helps to foster technological learning to <100$ per tCO2, DACCS may remove CO2 at gigaton scale. DACCS also requires two magnitudes less land than BECCS. Designing NET systems that match intermittent renewable energies will be key for stringent climate change mitigation. Our results contribute to an emerging understanding of NETs that is notably different to that derived from scenario modelling

The mutual dependence of negative emission technologies and energy systems

While a rapid decommissioning of fossil fuel technologies deserves priority, most climate stabilization scenarios suggest that negative emission technologies (NETs) are required to keep global warming well below 2 °C. Yet, current discussions on NETs are lacking a distinct energy perspective. Prominent NETs, such as bioenergy with carbon capture and storage (BECCS) and direct air carbon capture and storage (DACCS), will integrate differently into the future energy system, requiring a concerted research effort to determine adequate means of deployment. In this perspective, we discuss the importance of energy per carbon metrics, factors of future cost development, and the dynamic response of NETs in intermittent energy systems. The energy implications of NETs deployed at scale are massive, and NETs may conceivably impact future energy systems substantially. DACCS outperform BECCS in terms of primary energy required per ton of carbon sequestered. For different assumptions, DACCS displays a sequestration efficiency of 75–100%, whereas BECCS displays a sequestration efficiency of 50–90% or less if indirect land use change is included. Carbon dioxide removal costs of DACCS are considerably higher than BECCS, but if DACCS modularity and granularity helps to foster technological learning to <100$ per tCO2, DACCS may remove CO2 at gigaton scale. DACCS also requires two magnitudes less land than BECCS. Designing NET systems that match intermittent renewable energies will be key for stringent climate change mitigation. Our results contribute to an emerging understanding of NETs that is notably different to that derived from scenario modelling.TU Berlin, Open-Access-Mittel - 201

Carbon leakage in a fragmented climate regime: The dynamic response of global energy markets

As a global climate agreement has not yet been achieved, a variety of national climate policy agendas are being pursued in different parts of the world. Regionally fragmented climate policy regimes are prone to carbon leakage between regions, which has given rise to concerns about the environmental effectiveness of this approach. This study investigates carbon leakage through energy markets and the resulting macro-economic effects by exploring the sensitivity of leakage to the size and composition of pioneering regions that adopt ambitious climate action early on. The study uses the multi-regional energy–economy–climate model REMIND 1.5 to analyze the implications of Europe, China and the United States taking unilateral or joint early action. We find that carbon leakage is the combined effect of fossil fuel and capital market re-allocation. Leakage is limited to 15% of the emission reductions in the pioneering regions, and depends on the size and composition of the pioneering coalition and the decarbonization strategy in the energy sector. There is an incentive to delay action to avoid near-term costs, but the immediate GDP losses after acceding to a global climate regime can be higher in the case of delayed action compared to early action. We conclude that carbon leakage is not a strong counter-argument against early action by pioneers to induce other regions to adopt more stringent mitigation

Analysing interactions among Sustainable Development Goals with Integrated Assessment Models

To achieve all Sustainable Development Goals (SDGs) by 2030, it is necessary to understand how they interact with each other. Integrated Assessment Models (IAMs) represent many human–environment interactions and can inform policymakers about the synergies and trade-offs involved in meeting multiple goals simultaneously. We analyse how IAMs, originally developed to study interactions among energy, the economy, climate, and land, can contribute to a wider analysis of the SDGs in order to inform integrated policies. We compare the key interactions identified among the SDGs in an expert survey, with their current and planned representation in models as identified in a survey among modellers. We also use text mining to reveal past practices by extracting the themes discussed in the IAM literature, linking them to the SDGs, and identifying the interactions among them, thus corroborating our previous results. This combination of methods allowed us to discuss the role of modelling in informing policy coherence and stimulate discussions on future research. The analysis shows that IAMs cover the SDGs related to climate because of their design. It also shows that most IAMs cover several other areas that are related to resource use and the Earth system as well. Some other dimensions of the 2030 Agenda are also covered, but socio-political and equality goals, and others related to human development and governance, are not well represented. Some of these are difficult to capture in models. Therefore, it is necessary to facilitate a better representation of heterogeneity (greater geographical and sectoral detail) by using different types of models (e.g. national and global) and linking different disciplines (especially social sciences) together. Planned developments include increased coverage of human development goals and contribute to policy coherence

Energy system developments and investments in the decisive decade for the Paris Agreement goals

The Paris Agreement does not only stipulate to limit the global average temperature increase to well below 2 °C, it also calls for 'making finance flows consistent with a pathway towards low greenhouse gas emissions'. Consequently, there is an urgent need to understand the implications of climate targets for energy systems and quantify the associated investment requirements in the coming decade. A meaningful analysis must however consider the near-term mitigation requirements to avoid the overshoot of a temperature goal. It must also include the recently observed fast technological progress in key mitigation options. Here, we use a new and unique scenario ensemble that limit peak warming by construction and that stems from seven up-to-date integrated assessment models. This allows us to study the near-term implications of different limits to peak temperature increase under a consistent and up-to-date set of assumptions. We find that ambitious immediate action allows for limiting median warming outcomes to well below 2 °C in all models. By contrast, current nationally determined contributions for 2030 would add around 0.2 °C of peak warming, leading to an unavoidable transgression of 1.5 °C in all models, and 2 °C in some. In contrast to the incremental changes as foreseen by current plans, ambitious peak warming targets require decisive emission cuts until 2030, with the most substantial contribution to decarbonization coming from the power sector. Therefore, investments into low-carbon power generation need to increase beyond current levels to meet the Paris goals, especially for solar and wind technologies and related system enhancements for electricity transmission, distribution and storage. Estimates on absolute investment levels, up-scaling of other low-carbon power generation technologies and investment shares in less ambitious scenarios vary considerably across models. In scenarios limiting peak warming to below 2 °C, while coal is phased out quickly, oil and gas are still being used significantly until 2030, albeit at lower than current levels. This requires continued investments into existing oil and gas infrastructure, but investments into new fields in such scenarios might not be needed. The results show that credible and effective policy action is essential for ensuring efficient allocation of investments aligned with medium-term climate targets

Taking some heat off the NDCs? The limited potential of additional short-lived climate forcers’ mitigation

Several studies have shown that the greenhouse gas reduction resulting from the current nationally determined contributions (NDCs) will not be enough to meet the overall targets of the Paris Climate Agreement. It has been suggested that more ambition mitigations of short-lived climate forcer (SLCF) emissions could potentially be a way to reduce the risk of overshooting the 1.5 or 2 °C target in a cost-effective way. In this study, we employ eight state-of-the-art integrated assessment models (IAMs) to examine the global temperature effects of ambitious reductions of methane, black and organic carbon, and hydrofluorocarbon emissions. The SLCFs measures considered are found to add significantly to the effect of the NDCs on short-term global mean temperature (GMT) (in the year 2040: − 0.03 to − 0.15 °C) and on reducing the short-term rate-of-change (by − 2 to 15%), but only a small effect on reducing the maximum temperature change before 2100. This, because later in the century under assumed ambitious climate policy, SLCF mitigation is maximized, either directly or indirectly due to changes in the energy system. All three SLCF groups can contribute to achieving GMT changes

Short term policies to keep the door open for Paris climate goals

Climate policy needs to account for political and social acceptance. Current national climate policy plans proposed under the Paris Agreement lead to higher emissions until 2030 than cost-effective pathways towards the Agreements’ long-term temperature goals would imply. Therefore, the current plans would require highly disruptive changes, prohibitive transition speeds, and large long-term deployment of risky mitigation measures for achieving the agreement’s temperature goals after 2030. Since the prospects of introducing the cost-effective policy instrument, a global comprehensive carbon price in the near-term, are negligible, we study how a strengthening of existing plans by a global roll-out of regional policies can ease the implementation challenge of reaching the Paris temperature goals. The regional policies comprise a bundle of regulatory policies in energy supply, transport, buildings, industry, and land use and moderate, regionally differentiated carbon pricing. We find that a global roll-out of these policies could reduce global CO2 emissions by an additional 10 GtCO2eq in 2030 compared to current plans. It would lead to emissions pathways close to the levels of cost-effective likely below 2 °C scenarios until 2030, thereby reducing implementation challenges post 2030. Even though a gradual phase-in of a portfolio of regulatory policies might be less disruptive than immediate cost-effective carbon pricing, it would perform worse in other dimensions. In particular, it leads to higher economic impacts that could become major obstacles in the long-term. Hence, such policy packages should not be viewed as alternatives to carbon pricing, but rather as complements that provide entry points to achieve the Paris climate goals

The role of methane in future climate strategies: mitigation potentials and climate impacts

This study examines model-specific assumptions and projections of methane (CH4) emissions in deep mitigation scenarios generated by integrated assessment models (IAMs). For this, scenarios of nine models are compared in terms of sectoral and regional CH4 emission reduction strategies, as well as resulting climate impacts. The models’ projected reduction potentials are compared to sector and technology-specific reduction potentials found in literature. Significant cost-effective and non-climate policy related reductions are projected in the reference case (10–36% compared to a “frozen emission factor” scenario in 2100). Still, compared to 2010, CH4 emissions are expected to rise steadily by 9–72% (up to 412 to 654 Mt CH4/year). Ambitious CO2 reduction measures could by themselves lead to a reduction of CH4 emissions due to a reduction of fossil fuels (22–48% compared to the reference case in 2100). However, direct CH4 mitigation is crucial and more effective in bringing down CH4 (50–74% compared to the reference case). Given the limited reduction potential, agriculture CH4 emissions are projected to constitute an increasingly larger share of total anthropogenic CH4 emissions in mitigation scenarios. Enteric fermentation in ruminants is in that respect by far the largest mitigation bottleneck later in the century with a projected 40–78% of total remaining CH4 emissions in 2100 in a strong (2 °C) climate policy case

Energy system developments and investments in the decisive decade for the Paris Agreement goals

The Paris Agreement does not only stipulate to limit the global average temperature increase to well below 2 °C, it also calls for 'making finance flows consistent with a pathway towards low greenhouse gas emissions'. Consequently, there is an urgent need to understand the implications of climate targets for energy systems and quantify the associated investment requirements in the coming decade. A meaningful analysis must however consider the near-term mitigation requirements to avoid the overshoot of a temperature goal. It must also include the recently observed fast technological progress in key mitigation options. Here, we use a new and unique scenario ensemble that limit peak warming by construction and that stems from seven up-to-date integrated assessment models. This allows us to study the near-term implications of different limits to peak temperature increase under a consistent and up-to-date set of assumptions. We find that ambitious immediate action allows for limiting median warming outcomes to well below 2 °C in all models. By contrast, current nationally determined contributions for 2030 would add around 0.2 °C of peak warming, leading to an unavoidable transgression of 1.5 °C in all models, and 2 °C in some. In contrast to the incremental changes as foreseen by current plans, ambitious peak warming targets require decisive emission cuts until 2030, with the most substantial contribution to decarbonization coming from the power sector. Therefore, investments into low-carbon power generation need to increase beyond current levels to meet the Paris goals, especially for solar and wind technologies and related system enhancements for electricity transmission, distribution and storage. Estimates on absolute investment levels, up-scaling of other low-carbon power generation technologies and investment shares in less ambitious scenarios vary considerably across models. In scenarios limiting peak warming to below 2 °C, while coal is phased out quickly, oil and gas are still being used significantly until 2030, albeit at lower than current levels. This requires continued investments into existing oil and gas infrastructure, but investments into new fields in such scenarios might not be needed. The results show that credible and effective policy action is essential for ensuring efficient allocation of investments aligned with medium-term climate targets