Comparing future patterns of energy system change in 2 °C scenarios to expert projections

Integrated assessment models (IAMs) are computer-based instruments used to assess the implications of human activity on the human and earth system. They are simultaneously also used to explore possible response strategies to climate change. As IAMs operate simplified representations of real-world processes within their model structures, they have been frequently criticised to insufficiently represent the opportunities and challenges in future energy systems over time. To test whether projections by IAMs diverge in systematic ways from projections made by technology experts we elicited expert opinion on prospective change for two indicators and compared these with the outcomes of IAM studies. We specifically focused on five (energy) technology families (solar, wind, biomass, nuclear, and carbon capture and storage or CCS) and compared the considered implications of the presence or absence of climate policy on the growth and diffusion of these technologies over the short (2030) to medium (2050) term. IAMs and experts were found to be in relatively high agreement on system change in a business-as-usual scenario, albeit with significant differences in the estimated magnitude of technology deployment over time. Under stringent climate policy assumptions, such as the internationally agreed upon objective to limit global mean temperature increase to no more than 2 °C, we found that the differences in estimated magnitudes became smaller for some technologies and larger for others. Compared to experts, IAM simulations projected a greater reliance on nuclear power and CCS to meet a 2 °C climate target. In contrast, experts projected a stronger growth in renewable energy technologies, particularly solar power. We close by discussing several factors that are considered influential to the alignment of the IAM and expert perspectives in this study

Aligning integrated assessment modelling with socio-technical transition insights: an application to low-carbon energy scenario analysis in Europe

In this study, we present and apply an interdisciplinary approach that systematically draws qualitative insights from socio-technical transition studies to develop new quantitative scenarios for integrated assessment modelling. We identify the transition narrative as an analytical bridge between socio-technical transition studies and integrated assessment modelling. Conceptual interaction is realised through the development of two contrasting transition narratives on the role of actors in meeting the European Unions' 80% greenhouse gas emission reduction objective for 2050. The first transition narrative outlines how large-scale innovation trajectories are driven by incumbent actors, whereas the second transition narrative assumes more ‘alternative’ strategies by new entrants with strong opposition to large-scale technologies. We use the multi-level perspective to draw out plausible storylines on actor positioning and momentum of change for several technological and social niche-innovations in both transition narratives. These storylines are then translated into quantitative scenarios for integrated assessment modelling. Although both developed transition pathways align with the European Union's low-carbon objective for 2050, we find that each pathway depicts a substantial departure from systems that are known to date. Future research could focus on further systematic (joint) development of operational links between the two analytical approaches, as well as work on improved representation of demand-oriented solutions in techno-economic modelling

A race to zero - Assessing the position of heavy industry in a global net-zero CO2 emissions context

In this study, we explore the decarbonisation pathways of four carbon and energy-intensive industries (respectively iron & steel, clinker & cement, chemicals and pulp & paper) in the context of a global 2050 net-zero carbon emissions objective using the IMAGE integrated assessment model. We systematically test the robustness of the model by studying its responses to four different decarbonisation narratives and across six different world regions. The study underpins earlier conclusions in the literature on ‘residual emissions’ and ‘hard-to-abate sectors’, such as the persistence of residual emissions and the overall continued use of fossil fuels by heavy industries within the global 2050 net-zero context (with the pulp & paper sector as an exception). However, under the condition that net-negative emissions are achieved in the power and energy conversion sectors prior to the 2050 landmark, the indirect emission removals can compensate for the residual emissions left in the industry sectors, rendering these sectors ‘net-zero’ as early as the 2040s. Full decarbonisation of industrial (sub)sector(s) is found to be possible, but only under very specific narratives and likely outside of the 2050 timeline for the iron & steel, clinker & cement and the chemical sector. Subsequently, we find that the decarbonisation patterns in IMAGE are industry and regionally specific, though, different strategic considerations (narratives) did not substantially change the models’ decarbonisation response before or after 2050. Important aspects of the decarbonisation responses are the (direct and indirect) electrification of the iron & steel sector, a full dependency on carbon removal technologies in the clinker & cement sector, the closing of carbon and material loops in the chemical sector and zero-carbon heating for the pulp & paper sector. However, further research and modelling efforts are needed to study a broader palette of conceivable decarbonisation pathways and implications for industry within a global 2050 net-zero economy context

Post-2020 climate agreements in the major economies assessed in the light of global models

Integrated assessment models can help in quantifying the implications of international climate agreements and regional climate action. This paper reviews scenario results from model intercomparison projects to explore different possible outcomes of post-2020 climate negotiations, recently announced pledges and their relation to the 2 °C target. We provide key information for all the major economies, such as the year of emission peaking, regional carbon budgets and emissions allowances. We highlight the distributional consequences of climate policies, and discuss the role of carbon markets for financing clean energy investments, and achieving efficiency and equity

A European industrial development policy for prosperity and zero emissions

The objective of this paper is to outline and discuss the key elements of an EU industrial development policy consistent with the Paris Agreement. We also assess the current EU Industrial Strategy proposal against these elements. The “well below 2 °C” target sets a clear limit for future global greenhouse gas emissions and thus strict boundaries for the development of future material demand, industrial processes and the sourcing of feedstock; industry must evolve to zero emissions or pay for expensive negative emissions elsewhere. An industrial policy for transformation to net-zero emissions must include attention to directed technological and economic structural change, the demand for emissions intensive products and services, energy and material efficiency, circular economy, electrification and other net-zero fuel switching, and carbon capture and use or storage (CCUS). It may also entail geographical relocation of key basic materials industries to regions endowed with renewable energy. In this paper we review recent trends in green industrial policy. We find that it has generally focused on promoting new green technologies (e.g., PVs, batteries, fuel cells and biorefineries) rather than on decarbonizing the emissions intensive basic materials industries, or strategies for handling the phase-out or repurposing of sunset industries (e.g., replacing fossil fuel feedstocks for chemicals). Based on knowledge about industry and potential mitigation options, and insights from economics, governance and innovation studies, we propose a framework for the purpose of developing and evaluating industrial policy for net-zero emissions. This framework recognizes the need for: directionality; innovation; creating lead markets for green materials and reshaping existing markets; building capacity for governance and change; coherence with the international climate policy regime; and finally the need for a just transition. We find the announced EU Industrial Strategy to be strong on most elements, but weak on transition governance approaches, the need for capacity building, and creating lead markets

Comparing future patterns of energy system change in 2°C scenarios with historically observed rates of change

This paper systematically compares modeled rates of change provided by global integrated assessment models aiming for the 2 °C objective to historically observed rates of change. Such a comparison can provide insights into the difficulty of achieving such stringent climate stabilization scenarios. The analysis focuses specifically on the rates of change for technology expansion and diffusion, emissions and energy supply investments. The associated indicators vary in terms of system focus (technology-specific or energy system wide), temporal scale (timescale or lifetime), spatial scale (regional or global) and normalization (accounting for entire system growth or not). Although none of the indicators provide conclusive insights as to the achievability of scenarios, this study finds that indicators that look into absolute change remain within the range of historical growth frontiers for the next decade, but increase to unprecedented levels before mid-century. Indicators that take into account or normalize for overall system growth find future change to be broadly within historical ranges. This is particularly the case for monetary-based normalization metrics like GDP compared to energy-based normalization metrics like primary energy. By applying a diverse set of indicators alternative, complementary insights into how scenarios compare with historical observations are acquired but they do not provide further insights on the possibility of achieving rates of change that are beyond current day practice

Reducing sectoral hard to abate emissions to limit reliance of Carbon Dioxide Removal in 1.5°C scenarios

Achieving net-zero greenhouse gas targets is often achieved by compensating residual greenhouse gas emissions in the hard to abate (HtA) sectors, with carbon dioxide removal (CDR) options. However, large-scale application of CDR may lead to environmental, technical and social concerns. The extent to which residual emissions can be reduced in the industry, agriculture, buildings and transport sector is analysed based on integrated assessment of scenarios with ambitious measures in the HtA sectors. Two scenarios that explore demand and technology-focused approaches show that by reducing residual emissions, the CDR ceiling can be significantly lowered (23-30%) compared to reference in the net-zero year. The agriculture sector plays a critical role in this given the large share of residual emissions. The additional measures allow to create a 1.5°C scenario in which crop-based bioenergy use is limited to 40 EJ/yr, therefore within sustainable limits, and afforestation can be limited to abandoned cropland and grassland

Actors, decision-making, and institutions in quantitative system modelling

Increasing realism in quantitative system modelling with respect to the representation of actors, decision-making, and institutions is critical to better understand the transition towards a low-carbon sustainable society. Yet, studies using quantitative system models, which have become a key analytical tool to support sustainability and decarbonization policies, focus on outcomes, therefore overlooking the dynamics of the drivers of change. We explore opportunities that arise from a deeper engagement of quantitative systems modelling with social science. We argue that several opportunities for enriching the realism in model-based scenario analysis can arise through model refinements oriented towards a more detailed approach in terms of actor heterogeneity, as well as through integration across different analytical and disciplinary approaches. Several opportunities that do not require major changes in model structure are ready to be seized. Promising ones include combining different types of models and enriching model-based scenarios with evidence from applied economics and transition studies

Exploring the implications of lifestyle change in 2°C mitigation scenarios using the IMAGE integrated assessment model

Most model studies focus on technical solutions in order to meet the 2°C climate target, such as renewable, carbon capture and energy efficiency technologies. Such studies show that it becomes increasingly more difficult to attain the 2°C target with carbon price driven technical solutions alone. This indicates the need to focus more on non-economic and non-technological drivers of energy system transformations, which are generally not explicitly included in long-term scenario studies. This study implements a set of lifestyle change measures for residential energy use, mobility and waste management in the integrated assessment model IMAGE. We analyze the implications of these lifestyle changes in a business-as-usual and 2°C climate mitigation reference case. We find that lifestyle change measures included in this study mostly affect the end-use sectors. By 2050, the measures reduce CO2 emissions in the residential sector by about 13% and in the transport sector by about 35% compared to baseline emissions. The indirect implications in the industry and energy supply sectors were found to be negligible. In mitigation scenarios the contribution of lifestyle measures is dampened in end-use sectors as they overlap with more technical measures. Yet, as they may create opportunities to mitigate in sectors without more radical changes in (1) the energy infrastructure and (2) on the short term, it leads to a more cost-efficient mitigation strategy. Further research in how behavior can be internalized into integrated assessment studies is recommendable

Open discussion of negative emissions is urgently needed

Although nearly all 2 °C scenarios use negative CO2 emission technologies, only relatively small investments are being made in them, and concerns are being raised regarding their large-scale use. If no explicit policy decisions are taken soon, however, their use will simply be forced on us to meet the Paris climate targets